Nasdaq hits record as AI stocks rally despite surging bond yields
Nasdaq hit a record Monday as Nvidia, Microsoft and Meta surged, even as 10-year Treasury yields jumped above 5.34%.
The Nasdaq Composite hit a record Monday, gaining about 1%, while the S&P 500 rose 0.66%, approaching its Aug 13 record close. The rally came even as Treasury yields surged sharply: the 10-year yield topped 5.34% and the 30-year neared 5.7%.
Three companies powered the gains: Nvidia rose 2.1% to its first record close since May, Microsoft added 1.5%, and Meta climbed 1.9%. Together, the three stocks make up nearly 17% of the S&P 500 by market value, enough to lift indexes despite pressure elsewhere.
Nvidia is benefiting from strong customer returns on its latest chips, particularly from SpaceX's AI computing clusters. Microsoft's gains reflect enthusiasm for its Copilot AI assistant, while Meta is rising on hopes for its Muse personal agent app.
Most other stocks are under pressure from higher rates, with safety stocks and utilities particularly weak.
- 1%
- Nasdaq gain
- 5.34%
- 10-year Treasury yield
- First record close since May
- Nvidia weight in gains
- Three stocks equal 17% of S&P 500
- Market concentration
Why it mattersThe market's gains rest on a narrow band of winners while most stocks struggle with higher interest rates, signaling fragility beneath the index-level strength.
AustraliaAustralian investors holding US tech stocks see gains; Australian companies with US debt exposure face higher borrowing costs as rates rise globally.
✓ Claims checked against the source. checked 3 h ago
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