Big Tech lifts Nasdaq to a fresh record as 10-year Treasury yield hits its highest since 2002
AI Market Summary
U.S. equities rose with the Nasdaq hitting a record as megacap tech outperformed, but market breadth weakened sharply, signaling a narrower rally. Treasury yields surged to 2002 highs, reflecting higher-for-longer rate risk as ISM services showed sticky price pressures. Goldman noted de-risking among fundamental long/short funds. The mix of strong index performance, deteriorating internals, and rising yields raises near-term volatility across risk assets.
Impact level
● High
Affected assets
NCSINASDAQ1002USD/USDT+0.45%
AI Insight · NCSINASDAQ1002USD/USDTAI Insight
● Neutral
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Oct. 6 — U.S. stocks finished Monday higher, with the Nasdaq Composite climbing 1.05% to a new all-time closing high as mega-cap technology shares extended their rally, according to BIT (bit.com) market data cited by Huo Xing Finance. The Dow Jones Industrial Average added 0.18% and the S&P 500 rose 0.67%.
SpaceX surged nearly 8%. Tesla, NVIDIA and Broadcom each gained more than 2%, while Meta advanced 1.9%. TSMC's U.S.-listed ADR rose 2.75%, with its market capitalization briefly topping $2.5 trillion to set a new record.
Chipmakers broadly lagged. Intel, Qualcomm, ARM, ASML and AMD ended lower, and the Philadelphia Semiconductor Index added less than 0.3%.
Despite headline gains, market breadth weakened further. Monday was the 15th straight session in which the number of stocks making new lows exceeded those hitting new highs. Fundstrat data showed about 20% of Russell 3000 constituents trading above their 50-day moving average, while the share above the 200-day moving average slipped to just over 40%—the lowest level this year.
Goldman Sachs said some fundamental long/short funds are cutting risk, with aggregate net positioning around the 2nd percentile versus the past five years.
Treasury yields moved sharply higher. The 10-year and 30-year U.S. yields rose intraday to 5.34% and 5.70%, respectively, both the highest since 2002.
On the data front, the U.S. September ISM Services PMI eased to 54.9, while the services prices index climbed to 74.0 from 72.6, a four-year high. The combination fueled concerns that inflation pressures may prove sticky and keep interest rates elevated for longer.
