Nasdaq Hits All-Time High as Tech Stocks Strengthen Amid Rising U.S. Treasury Yields

As U.S. Treasury yields rose, technology stocks related to artificial intelligence showed strength, and major New York stock indexes all rose on the 5th (local time). The Nasdaq Composite Index hit an alltime high both intraday and at the close. The Dow Jones Industrial Average closed up 0.18% at 51,267.90, the Standard & Poor's (S&P) 500 Index rose 0.66% to 7,773.95, and the Nasdaq finished 1.05% higher at 27,477.31. In particular, AIrelated stocks led the gains, highlighting the strength in tech stocks. Nvidia, Tesla, Meta, and Microsoft helped support market sentiment as they rose. Market analysts said strong AI demand is offsetting some of the burden from rising interest rates. In contrast, U.S. 10year and 30year Treasury yields climbed intraday to their highest levels since 2002, and selling continued in the bond market. The U.S. service sector maintained its expansion trend. The September ISM Services PMI was reported at 54.9, broadly in line with market expectations and above the benchmark level of 50. A decline in international oil prices also had a somewhat positive effect on investor sentiment. The market is now looking to the minutes of the Federal Open Market Committee (FOMC), which will be released soon, to confirm the direction of interest rate policy.