NVIDIA Closes at a Record While Yields Flash a 2002 Signal

Nvidia closed at a record on October 5 as the Nasdaq Composite ended at 27,477.31, gaining 1.05% on the session, even as the 10-year Treasury yield climbed to 5.315%, near its highest level since 2002 and a new 52-week high.The pairing is unusual because rising yields typically pressure technology valuations by increasing the discount rate applied to future earnings. Mega-cap tech strength overrode that drag, with the Nasdaq-100 also setting a fresh record on the session, according to TheStreet.

The Closes: Nasdaq, S&P 500 and Dow

The Nasdaq Composite gained 286.45 points to close at 27,477.31, a record. The S&P 500 rose 0.66% to 7,773.99, and the Dow Jones Industrial Average added 0.18% to finish at 51,267.90, per TheStreet's market wrap. The Russell 2000 gained 0.72% to 2,853.27, though small-cap performance lagged the large-cap tech leaders that drove the session. Breadth was solid, with about 340 of the S&P 500's constituents advancing, suggesting the rally extended beyond the handful of mega-cap names at the top of the index.

Who Led: Nvidia, Meta, Microsoft and SpaceX

Nvidia rose approximately 2.1% to $238.90, a record close, as the chipmaker continued to benefit from sustained artificial intelligence (AI) infrastructure spending. Nvidia partner Hon Hai Precision Industry, also known as Foxconn, reported quarterly revenue of NT$3.03 trillion ($95.4 billion), up 47% and above analyst estimates, signaling elevated AI hardware demand.Meta Platforms gained about 1.9%, Microsoft rose more than 1.5%, and Tesla added roughly 2.2%. SpaceX climbed 7.63%. PTC surged approximately 33% after Schneider Electric announced a $22.6 billion all-cash acquisition of the industrial software maker.

Records in Stocks, a 2002 High in Yields

The 10-year Treasury yield rose 3.8 basis points to 5.315%, a new 52-week high. The 20-year and 30-year yields also set fresh 52-week highs, while the 2-year yield edged lower, steepening the curve to roughly 49 basis points between the 2-year and 10-year.Daniela Hathorn, senior market analyst at Capital.com, said equities are benefiting from the softer September payrolls report, which showed just 29,000 jobs added against higher expectations, helping reduce the odds of another Federal Reserve rate hike in October. "The 10-year Treasury yield is still around 5.25%, despite the disappointing payroll report," Hathorn noted, adding that the long-end selloff is being driven by elevated real yields, heavy borrowing and competition for capital rather than monetary policy alone.That creates what Hathorn described as an unusual divergence: growth stocks rally because Federal Reserve expectations have softened, while the risk-free rate against which those valuations are measured remains exceptionally high.

This Week's Tests

Investors face several catalysts in the days ahead. The Federal Reserve's September meeting minutes arrive on October 7 and will offer more detail on how officials weighed the decision to raise rates. Samsung reports preliminary Q3 results on October 8, providing another data point on semiconductor demand.Whether the Nasdaq can hold its record while the 10-year yield stays above 5.3% will test the durability of the two-tier dynamic that Hathorn and TheStreet Pro contributor James DePorre have identified: mega-cap AI names that are largely unbothered by higher rates versus the rest of the market, where slow growth and rising borrowing costs are a more direct headwind.