The Nasdaq hits a record high as AI stocks rally despite elevated Treasury yields

Despite the whiners who think AI will destroy the world, it's here to stay. Some Gen Z grads may have to sweat the job market out (sorry guys) but eventually there will be data centers everywhere powered by modular nuclear reactors.

Put on your big boy pants and tell Bernie to suck it.

The Nasdaq hits a record high as AI stocks rally despite elevated Treasury yields

The tech-heavy index climbed 0.8% on Monday, led by SpaceX, Meta, and Nvidia, even as the 10-year yield held near 5.3%

By Cris Tolomia, Quartz Media

Updated October 5, 2026

The Nasdaq $NDAQ -1.46% Composite soared to an all-time high of 27,409.21 mid-day Monday, a gain of roughly 0.8%, as stocks tied to the artificial intelligence boom carried the index above its prior record. The S&P 500 gained roughly 0.6%, while the Dow Jones Industrial Average added about 0.1%.

SpaceX led the Nasdaq's advance, gaining roughly 5%. Meta $META +0.30% stock rose more than 2%, Microsoft $MSFT +0.92% stock climbed more than 1%, Nvidia $NVDA +1.34% stock added more than 1%, and Tesla $TSLA +4.65% stock rose 2%.

The record came even as Treasury yields moved higher. The 10-year Treasury yield settled at 5.298%, up 2 basis points on the day, and the 30-year yield reached 5.659% after adding 3 basis points. The moves extended a broader climb that had taken both yields to their highest levels in years, driven by worries that stubbornly high inflation would prompt the Federal Reserve to hold its policy rate at restrictive levels.

Separately, the Institute for Supply Management reported that its services-sector PMI registered 54.9% in September, meeting analyst forecasts but slipping from the level recorded in August.

Monday's gains followed a turbulent week in which climbing Treasury yields dominated market sentiment and a softer-than-expected payrolls report reduced the perceived likelihood of an additional Fed rate increase in the near term. Investors are watching Wednesday's release of the Fed's September meeting minutes for additional context around the central bank's quarter-point rate increase at that gathering.

Oil prices fell on Monday. Brent crude futures slipped more than 0.7%, changing hands at $101.51 a barrel, while West Texas Intermediate fell 1% to settle at $88.53 a barrel.

The Nasdaq's record also followed news that French engineering company Schneider Electric agreed to acquire U.S. software maker PTC, according to The Wall Street Journal. PTC stock was the S&P 500's top performer on Monday and was on pace for its largest single-day percentage gain on record, the Journal reported. Other AI-linked stocks, including Western Digital $WDC -10.22% and Seagate $STX -10.21% Technology, also rose.

Citi strategist Beata Manthey observed that world equity markets have posted gains of around 12% so far this year and are trading near record territory even as geopolitical tensions and rising borrowing costs weigh on sentiment. "Does this relative calm suggest equity fundamentals will prove resilient to ongoing macro shocks, or will stocks eventually need to correct to more accurately reflect the current risk backdrop?" Manthey wrote, adding that the firm remains in the "resilience" camp for now.