NVIDIA Closes at a Record While Yields Flash a 2002 Signal

AI summary of the source article

Nvidia closed at a record $238.90 on October 5, helping push the Nasdaq Composite to an all-time high of 27,477.31 alongside gains in the S&P 500 and Dow Jones Industrial Average. The rally was supported by continued AI infrastructure spending and strong quarterly revenue from Foxconn. However, this tech surge coincided with the 10-year Treasury yield hitting a 52-week high of 5.315%, near levels not seen since 2002. Capital.com analyst Daniela Hathorn highlighted an unusual divergence where softer payroll data lowered expectations for another Federal Reserve rate hike, yet heavy borrowing and competition for capital kept long-term yields high.

Why it matters

Rising Treasury yields typically compress technology valuations, but resilient AI demand has enabled mega-cap equities to decouple from elevated borrowing costs. This dynamic tests whether growth stocks can sustain gains as the risk-free rate remains near multi-decade highs.

Key facts

• Nvidia shares rose approximately 2.1% to a record close of $238.90, supported by AI infrastructure demand and strong Foxconn revenue.
• The Nasdaq Composite gained 1.05% to hit a record 27,477.31, while the S&P 500 and Dow also advanced.
• The 10-year Treasury yield climbed 3.8 basis points to 5.315%, marking a new 52-week high near levels unseen since 2002.