US Stocks Close Higher Monday as Nasdaq Hits Record High; Tech Rally Overpowers Rising Treasury Yields

New York, Oct. 5, 2026 — U.S. stocks closed higher on Monday, with the Nasdaq Composite notching a record closing high, as a powerful rally in technology shares overshadowed another leg up in Treasury yields.

The S&P 500 rose 51.23 points, or 0.66%, to close at 7,773.95, leaving it just 0.3% shy of its all-time high . The Dow Jones Industrial Average added 90.94 points, or 0.18%, to 51,267.90 . The tech-heavy Nasdaq Composite gained 286.45 points, or 1.05%, to close at a record 27,477.31 . The Russell 2000 index of smaller companies advanced 0.5% to 2,847.14 .

Why Did the Stock Market Rise Today?

Monday’s gains were driven by three key factors:

1. Rate hike fears continue to fade. Markets are still digesting Friday’s much weaker-than-expected September nonfarm payrolls report, which showed employers added just 29,000 jobs — far below the 89,000 consensus estimate . According to the CME FedWatch Tool, the probability of a 25-basis-point rate hike at the October 28 Fed meeting has fallen to roughly 21.6%, down from 70.9% a week earlier .

2. Oil prices retreated. Brent crude fell about 1.1% to around $101 per barrel after reports that Saudi-backed Yemeni forces had taken control of the Bab el-Mandeb Strait, easing fears of a Middle East supply disruption .

3. Big Tech kept climbing. SpaceX rose about 5%, Meta gained over 2%, Microsoft added more than 1%, Nvidia rose over 1%, and Tesla climbed roughly 2% — extending last week’s rally after the company reported better-than-expected Q3 deliveries .

Treasury Yields Keep Rising

Despite the equity rally, pressure in the bond market persisted. The 10-year Treasury yield rose about 3.4 basis points to 5.310%, a fresh 52-week high and the highest level since April 2002 . The 30-year yield climbed to roughly 5.68%, while the 2-year yield edged lower to 4.818% .

Analysts noted that tech stocks are less sensitive to rising rates than defensive sectors. “Tech is almost immune to rates because the demand for compute is so strong that tech companies can absorb whatever debt costs are thrown at them,” said Jay Hatfield, founder of Infrastructure Capital Advisors .

Which Sectors and Stocks Led the Rally?

Ten of the S&P 500’s 11 sectors closed higher. Materials and communication services led with gains of 1.22% and 1.14%, respectively, followed by consumer discretionary and information technology .

Semiconductor and AI-linked stocks stood out. Nvidia rose more than 1% to an intraday record. SpaceX jumped about 5%, while Meta and Microsoft also moved higher . Tesla added roughly 2%, building on its post-delivery-report momentum .

Intel bucked the trend, falling more than 1.5% after reports that TSMC may hold talks with Elon Musk’s Terafab project .

Real estate was the only sector to close lower, slipping 0.44% .

Volatility and Market Breadth

The CBOE Volatility Index (VIX) — Wall Street’s “fear gauge” — edged up 1.37% to 15.52, still near historically low levels, suggesting limited short-term anxiety .

Market breadth was broadly positive, with advancing stocks outnumbering decliners across the major exchanges.

What’s Next for Investors?

Attention now turns to the Federal Reserve’s Oct. 28 policy meeting. Although rate-hike expectations have cooled sharply, some officials remain wary of inflation. The ISM services PMI showed prices paid jumping to 74 from 72.6 in September, signaling stubborn services inflation that could limit the Fed’s room to pivot .

Meanwhile, third-quarter earnings season kicks off this week. Strategists at Citi and JPMorgan argue that strong corporate results could keep stocks grinding higher even if bond market volatility persists .