By William Collins, consultant in stock markets – Eurasia Business News, October 5, 2026. Article no 3197
U.S. stocks advanced on Monday, October 5, as renewed enthusiasm for artificial intelligence and lower oil prices helped the Nasdaq Composite reach a fresh all-time high. The technology-heavy index gained about 1.0% to 1.1%, while the S&P 500 rose 0.6% to 0.7% and the Dow Jones Industrial Average added roughly 0.1% to 0.2%.
The rally came despite higher Treasury yields. The 10-year U.S. Treasury yield closed near 5.31%, its highest closing level since April 2002, as strong economic data, inflation concerns and heavy government debt issuance continued to pressure the bond market.
Nasdaq and Nvidia Set Records
The Nasdaq Composite closed at a record high as megacap technology companies and AI-linked shares attracted buyers. Nvidia rose 2.1%, reaching a record close and lifting its market capitalization toward $5.76 trillion. Microsoft, Meta and other large technology companies also advanced.
The stock market’s ability to rally while the 10-year Treasury yield remains above 5.3% highlights continued confidence in technology earnings. Investors appear willing to look through higher borrowing costs as long as AI-related revenue, semiconductor demand and corporate investment remain strong.
PTC was the top performer in the S&P 500, surging approximately 33% to 35% after Schneider Electric agreed to acquire the U.S. industrial-software company for $22.6 billion in cash. The deal reflects the growing importance of industrial artificial intelligence, digital twins and engineering software in factory automation and energy-management systems.
Schneider’s acquisition is designed to broaden its ability to integrate AI into industrial operations. Investors interpreted the transaction as further evidence that the AI investment cycle is expanding beyond chipmakers and cloud-computing companies into industrial software, automation and infrastructure.
Treasury Yields Remain a Risk
The 10-year Treasury yield rose to around 5.298%–5.31%, while the 30-year yield reached roughly 5.659%. Both remained near their highest levels in more than two decades.finance.
Higher yields normally pressure equity valuations, particularly among growth companies. They also raise mortgage rates, corporate borrowing costs and consumer-credit expenses. The fact that technology stocks rose despite the yield move suggests investors see earnings momentum as strong enough to offset some of those headwinds.
However, elevated yields remain a major risk for the broader market. Real-estate stocks were the only major S&P 500 sector to decline on Monday, reflecting the sector’s particular sensitivity to high financing costs.
Investors are watching upcoming Treasury auctions, inflation reports and Federal Reserve speeches for signals on whether long-term borrowing costs can stabilize. A sustained move higher in yields could eventually test the resilience of the technology-led rally.
Oil Prices Ease on G-7 Reserve Release
Oil prices declined after G-7 countries agreed on Friday to release crude-oil and diesel reserves. The move was intended to reduce pressure on global energy markets after weeks of volatility linked to the Middle East conflict and risks around Gulf shipping routes.
Brent crude futures fell about 1.9% to $100.32 a barrel, while other intraday reporting placed Brent near $102.20 and U.S. West Texas Intermediate near $90.75. The differing figures reflect trading at different points in the session.
Lower oil prices helped improve risk sentiment by easing immediate inflation concerns. Brent remained near $100, however, leaving energy costs elevated enough to affect transport, manufacturing and consumer prices.
Brazilian Stocks and Real Surge
Brazilian assets recorded historic gains after right-wing Senator Flávio Bolsonaro finished first in the first round of the presidential election. The Bovespa stock index rose more than 8%, one of its largest daily gains this century outside the global financial crisis and pandemic era.
The Brazilian real strengthened more than 4% against the U.S. dollar, moving below 5.00 reais per dollar from roughly 5.22. Investors interpreted Bolsonaro’s result as improving the prospects for market-friendly economic policies, fiscal restraint and reforms if he wins the October 25 runoff against President Luiz Inácio Lula da Silva.
The rally demonstrated how quickly political expectations can affect emerging-market assets. A potential change in government is being priced as a possible shift toward lower deficits, privatization and less regulatory intervention—though the outcome remains uncertain until the runoff vote.
Gold Price Today in U.S. Dollars
Spot gold traded near $4,139.50 per troy ounce late Monday, October 5, with a bid of $4,139.50 and an ask of $4,141.50. The price was little changed, down 0.01% on the day. The reported trading range was approximately $4,122.60 to $4,171.40 per ounce.
Earlier in the session, Kitco quoted gold at $4,151.60 per ounce, up $11.80, or 0.29%, while Reuters data showed spot gold near $4,154.32. The intraday differences reflect the continuously traded spot market.
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Gold remained supported by geopolitical uncertainty and bond-market stress, but higher Treasury yields and a firm dollar limited gains. As a non-yielding asset, bullion typically faces pressure when long-term government-bond yields rise.
Outlook for Investors
The October 5 market session showed that AI optimism remains powerful enough to lift technology stocks even in a high-yield environment. The Nasdaq’s new record, Nvidia’s record close and the PTC-Schneider transaction all reinforced confidence in technology investment.
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But the gap between resilient equities and stressed bond markets remains a central issue. If Treasury yields keep rising, markets may struggle to sustain current valuations. Investors will therefore focus on inflation data, Treasury auctions, oil prices and whether the Federal Reserve signals that it can avoid further rate increases.
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© Copyright 2026 – Eurasia Business News. Article no. 3197
