Nasdaq closes at record high as AI stocks rally despite rising Treasury yields
In short
US stocks rose on October 5 local time, with the Nasdaq Composite closing at a record high as technology and AI-related shares gained despite rising Treasury yields. Yonhap reported the Dow rose 0.18% to 51,267.90 and the S&P 500 gained 0.66% to 7,773.95, while the Nasdaq added 1.05% to 27,477.31. Asia Economy reported Nvidia closed at a record for a second consecutive trading day.
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US stocks rose on October 5 local time, with the Nasdaq Composite closing at a record high as technology and artificial intelligence-related shares gained, according to Yonhap, Chosun Ilbo, Newsis and Asia Economy. The advance came even as US Treasury yields climbed. [ 2 , 4 , 6 , 7 , 9 , 10 ]
Yonhap reported the Dow Jones Industrial Average rose 90.94 points, or 0.18%, to 51,267.90; the S&P 500 gained 51.23 points, or 0.66%, to 7,773.95; and the Nasdaq Composite added 286.45 points, or 1.05% to close at 27,477.31. Asia Economy and Newsis gave the same closing figures. [ 2 , 6 , 7 ]
The Nasdaq's record came despite continued selling in Treasuries. Yonhap and Chosun Ilbo said 10-year and 30-year yields reached their highest levels in about 22 years during the session, and Asia Economy and Newsis reported the 10-year yield at 5.311% and the 30-year at 5.664%, both up more than 3 basis points. Asia Economy said investors worried that inflation could keep the Federal Reserve's rates high for longer. [ 2 , 5 , 6 , 7 , 9 ]
Asia Economy and Newsis reported that AI-related large technology stocks drew buying: SpaceX rose 7.63%, Nvidia 2.12%, Tesla 2.20%, Meta 1.90% and Microsoft 1.48%. Asia Economy said Nvidia closed at a record for a second consecutive trading day and was approaching a $6 trillion market capitalisation. Korea Economic Daily also reported that Nvidia hit a record high. [ 1 , 6 , 7 , 10 ]
Analysts cited by Asia Economy and Newsis attributed the resilience to AI demand. Jay Hatfield of Infrastructure Capital Advisors told CNBC that high profit growth and strong AI computing demand were offsetting the effect of higher financing costs, and that technology stocks had acted as a kind of safe asset since the pandemic. Morgan Stanley's Lisa Shalett, JPMorgan's Mislav Matejka and UBS's Ulrike Hoffmann-Burchardi also gave constructive views, with UBS expecting further gains over six to 12 months but possible volatility along the way. [ 6 , 7 ]
Asia Economy reported the ISM September services PMI was 54.9, slightly below the previous month's 55.4 and broadly in line with expectations, while its prices index rose to 74.0, the highest since July 2022. Brent crude fell 1.89% to $100.32 a barrel and WTI fell 1.8% to $89.43. Investors are awaiting the Fed's September FOMC minutes, due on October 7. [ 6 , 7 ]
Why it matters
The session showed investors still buying technology and AI shares even as long-term US borrowing costs reached their highest levels in more than two decades. Because US equities and Treasury yields set the tone for global markets, the split between strong stocks and weak bonds is relevant to readers outside the country. The documents give no indication of how long the pattern can last.
Key facts
- The three major US stock indices all rose on October 5 local time. [ 2 , 3 , 4 , 6 , 7 , 9 , 10 ]
- The Nasdaq Composite closed at a record high, with gains led by technology and AI-related shares. [ 1 , 2 , 3 , 4 , 7 , 8 , 9 , 10 ]
- The Dow Jones Industrial Average closed at 51,267.90 (+0.18%), the S&P 500 at 7,773.95 (+0.66%) and the Nasdaq Composite at 27,477.31 (+1.05%). [ 2 , 6 , 7 ]
- US 10-year and 30-year Treasury yields reached their highest levels in about 22 years during the session. [ 2 , 5 , 6 , 7 , 9 ]
- Asia Economy and Newsis reported SpaceX rose 7.63%, Nvidia 2.12%, Tesla 2.20%, Meta 1.90% and Microsoft 1.48%. [ 6 , 7 ]
- Nvidia closed at a record for a second consecutive trading day. [ 1 , 10 ]
- The ISM September services PMI came in at 54.9, slightly below the previous month's 55.4, while its prices index rose to 74.0, the highest since July 2022. [ 6 , 7 ]
Confirmed by several sources
- The three major US stock indices all rose on October 5 local time. [ 2 , 3 , 4 , 6 , 7 , 9 , 10 ]
- The Nasdaq Composite closed at a record high. [ 1 , 2 , 3 , 4 , 7 , 8 , 9 , 10 ]
- The Dow Jones Industrial Average closed at 51,267.90 (+0.18%), the S&P 500 at 7,773.95 (+0.66%) and the Nasdaq Composite at 27,477.31 (+1.05%). [ 2 , 6 , 7 ]
- US 10-year and 30-year Treasury yields reached their highest levels in about 22 years during the session. [ 2 , 5 , 9 ]
- Technology and AI-related stocks led the gains. [ 1 , 2 , 3 , 4 , 6 , 7 , 9 , 10 ]
- Nvidia closed at a record high for a second consecutive trading day. [ 1 , 10 ]
Still unclear
- Elon Musk's Terafab project may include TSMC participation, while Intel shares fell. Single-source claim from a Korea Economic Daily market brief; no other outlet mentions it.
- Nvidia's market capitalisation is approaching $6 trillion. Single-source claim from Asia Economy; no other document gives the figure.
- US President Donald Trump is preparing to ease restrictions on tax-free diesel use to lower diesel prices. Asia Economy attributes this to a Bloomberg report; no other document confirms it.
- Middle East crude exports have recovered to levels seen before the US attack on Iran, while oil prices have not fallen. Single-source claim from a Korea Economic Daily market brief; no other document mentions it.
- Elon Musk said the Terafab project could involve TSMC, with Intel and TSMC ADR share prices moving in opposite directions. Single-source claim from Korea Economic Daily with limited detail.
What local media are saying
Timeline, local time
- Korea Economic Daily publishes a market brief noting the Nasdaq and Nvidia record highs despite higher Treasury yields. [ 1 ]
- Yonhap reports New York stocks closed higher with the Nasdaq at a record and gives closing index levels. [ 2 ]
- Newsis reports New York stocks closed higher on technology strength, with the Nasdaq setting a record. [ 3 ]
- Chosun Ilbo reports AI-related technology stocks were strong and the Nasdaq set record highs intraday and at closing. [ 4 ]
- Yonhap publishes a comprehensive report noting yields rose to their highest level in about 22 years intraday. [ 5 ]
- Asia Economy details individual stock moves, analyst comments, Treasury yields, ISM services data and oil prices. [ 6 ]
- Newsis reports the closing levels and quotes an analyst saying technology shares have acted as a safe asset. [ 7 ]
- Seoul Shinmun highlights SpaceX's 7% surge and AI technology strength. [ 8 ]
- Chosun Ilbo reports the Nasdaq closed at a record high as expectations for AI industry earnings supported shares. [ 9 ]
- Asia Economy reports Nvidia closed at a record for a second consecutive day and is approaching a $6 trillion market capitalisation. [ 10 ]