Nasdaq Hits Record as 5.34% Treasury Yield Surge Is Masked by 17% AI Index Weight
Updated
Updated · CNBC · Oct 5
Nasdaq Hits Record as 5.34% Treasury Yield Surge Is Masked by 17% AI Index Weight
3 articles · Updated · CNBC · Oct 5
Summary
The Nasdaq rose 1% to a record close Monday and the S&P 500 gained 0.66%, even as the 10-year Treasury yield climbed above 5.34% and the 30-year neared 5.7%.
Meta, Microsoft and Nvidia drove that disconnect: the three stocks rose 1.9%, 1.5% and 2.1%, and together made up nearly 17% of the S&P 500 heading into the week.
Nvidia's first record close since May, stronger sentiment around Microsoft's Copilot and enthusiasm for Meta's Muse app helped keep buyers engaged despite higher-rate pressure.
Under the surface, utilities and other defensive stocks remained weak as richer bond payouts pulled income-focused investors away from equities.
Cramer said the Treasury sell-off may reflect heavy government borrowing, data-center funding demand or hedge-fund shorting, arguing bonds still offer the clearer signal for Wall Street's next move.