Stock Market Today, Oct. 5: Tech Momentum Lifts Nasdaq as Treasury Yields Surge

The Nasdaq Composite (NASDAQINDEX:^IXIC) gained 1.05% to 27,477, while the S&P 500 (SNPINDEX:^GSPC) rose 0.66% to 7,774 and the Dow Jones Industrial Average (DJINDICES:^DJI) added 0.18% to 51,268 as tech optimism overshadowed elevated Treasury yields.

Gold prices gained 0.10% to $4,138.68, and the 10-Year Treasury yield rose 0.03% to 5.31%. Almost every sector gained, with industrials and communication stocks surging, while real estate slipped slightly.

Today's biggest moves

Vaxcyte shares soared over 30% on positive late-stage vaccine success, while Genmab gained almost 11% after announcing positive lymphoma drug data. Meanwhile, PTC climbed following reports of a $22.6 billion buyout offer. Taiwan Semiconductor Manufacturing gained as investors digested reports that it was in discussions with Elon Musk's massive Terafab chip factory.

What this means for investors

Equities gained again today, and the Nasdaq notched another new high despite the global bond sell-off. There's increased appetite for risk after last week's softer-than-expected jobs data, as traders factor in the reduced likelihood of a further Federal Reserve rate hike this month.

Stocks in artificial intelligence bellwether and tech behemoth, Nvidia (NASDAQ:NVDA) gained, amid speculation that its market cap may soon reach an unprecedented $6 trillion. Fears that the AI boom may burst like the dot-com-era bubble have been offset by strong earnings and continued demand for AI infrastructure.

With a few weeks until earnings season kicks off in earnest, analysts have high expectations. Data from FactSet show that nearly 60% of ratings for S&P 500 companies are Buy. The companies themselves are also hopeful: a record 72 have issued positive Q3 guidance. For investors, those high expectations can be a double-edged sword. The optimism is reassuring, but it means companies can beat forecasts and still disappoint.

Emma Newbery has positions in Nvidia. The Motley Fool has positions in and recommends Autodesk, Genmab A/s, Nvidia, PTC, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.