The Nasdaq Composite closed at a fresh record on October 5, 2026, climbing 1.05% even as the 10-Year Treasury yield pushed higher. Nvidia led the gains on speculation about a $6 trillion valuation, while traders bet the Federal Reserve is less likely to raise rates again this month after soft jobs data.
Nasdaq sets a new high despite rising yields
The Nasdaq Composite gained 1.05% to close at 27,477 on October 5, 2026, a fresh record for the index. The S&P 500 rose 0.66% to 7,774, and the Dow Jones Industrial Average added 0.18% to 51,268. Tech optimism outweighed elevated Treasury yields, which rose 0.03% to 5.31% on the 10-year note.
Almost every sector advanced, with industrials and communication stocks surging, while real estate slipped slightly. Gold also gained, rising 0.1% to $4,138.68.
Nvidia and chipmakers drive the rally
Nvidia gained 2.12% amid speculation that its market cap may soon reach an unprecedented $6 trillion. Fears that the AI boom could burst like the dot-com-era bubble have been offset by strong earnings and continued demand for AI infrastructure. Taiwan Semiconductor Manufacturing also gained as investors digested reports that it was in talks with Elon Musk's Terafab chip factory.
Elsewhere, Vaxcyte shares soared over 30% on positive late-stage vaccine results, and Genmab gained almost 11% after announcing positive lymphoma drug data. PTC climbed following reports of a $22.6 billion buyout offer.
Earnings season nears with high expectations
Investors are showing increased appetite for risk after last week's softer-than-expected jobs data, as traders factor in a reduced likelihood of a further Federal Reserve rate hike this month. With a few weeks until earnings season begins, analysts have high expectations: data from FactSet show that nearly 60% of ratings for S&P 500 companies are Buy. Companies themselves are hopeful too: a record 72 have issued positive Q3 guidance.
That optimism cuts both ways. High expectations mean companies can beat forecasts and still disappoint investors looking for more.
Source: Motley Fool
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