On October 5, U.S. stocks rose despite U.S. Treasury yields reaching their highest levels in over 24 years. The Nasdaq Composite set a new record, driven by strong performance in technology stocks.
According to the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed up 90.94 points (0.18%) at 51,267.90. The S&P 500 gained 51.23 points (0.66%) to finish at 7,773.95, while the Nasdaq rose 286.45 points (1.05%) to close at 27,477.31.
The Nasdaq surpassed its previous closing high set on September 22, and the S&P 500 is nearing its record as well.
AI-related stocks were particularly influential in the Nasdaq's rise. SpaceX surged more than 7%, while major tech companies Meta and Microsoft increased by approximately 2% and over 1%, respectively. Nvidia also rose by more than 2%, continuing its streak of record highs for the second consecutive trading day.
In contrast, the U.S. bond market saw renewed selling pressure, pushing Treasury yields higher. The yield on the 10-year Treasury note rose by more than 3 basis points to 5.311%, while the 30-year yield also increased by over 3 basis points to 5.664%. During the day, the 10-year yield peaked at 5.347%, marking the highest level since April 3, 2002.
CNBC reported that concerns about inflation pressures may lead the Federal Reserve to maintain interest rates at elevated levels for longer than previously anticipated.
International oil prices fell, with Brent crude futures closing down 1.89% at $100.32 per barrel, and West Texas Intermediate (WTI) futures dropping 1.8% to $89.43.
Market participants were closely monitoring the service sector data released by the Institute for Supply Management (ISM). The ISM reported that the September Purchasing Managers' Index (PMI) for services was 54.9, generally in line with market expectations, although the growth rate slowed slightly from the previous month.
Investors are now awaiting the minutes from the Federal Open Market Committee (FOMC) meeting, scheduled for release on October 7. The minutes are expected to provide insights into the Fed's rationale for last month's 0.25 percentage point rate hike and future interest rate trajectory.
Beata Manthey, a strategist at Citibank, told CNBC, "While geopolitical risks and high interest rates are increasing, global markets have risen about 12% this year, approaching all-time highs. Although uncertainty remains high, we lean towards the view that the market's resilience will be maintained for now."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.