Nvidia Hit $5.76T. Nasdaq Hit a Record

Wall Street opened the week with another strong tech rally. The Nasdaq surged 1.05% to a record close. Nvidia gained 2.1% and reached a market value of $5.76 trillion.

Microsoft rose 1.5%. Meta and Tesla each gained about 2%. October Fed hike odds stayed near 24%. Brent crude fell to $100.32. And 10 of 11 S&P sectors finished higher. High yields stayed. Fed risk fell. Tech kept climbing.

Monday, October 5

Monday came down to three things. Fed hike fears stayed low. Oil moved lower. AI stocks kept rising.

That was enough to push the Nasdaq to another record. The bond market is still expensive. The dollar is still firm. But investors are now far less worried about another Fed hike this month than they were one week ago. That changed the balance.

Nvidia led the market again. Shares rose 2.1%. That pushed the company’s market value to $5.76 trillion. Microsoft gained 1.5%. Meta and Tesla each rose about 2%.

The pattern is familiar. Large technology firms are still carrying much of the market. Investors are willing to pay for growth as long as AI spending remains strong. That matters even more when Treasury yields stay elevated. Stocks need strong profit growth to compete with bonds. For now, investors still believe AI can deliver it.

The Nasdaq closed at 27,477.31. That was another record. The index gained 1.05% Monday after rising 1.19% Friday. That is a strong two-session move. The weak September jobs report changed the Fed trade.

Investors now see much less risk of another immediate hike. That has given growth stocks more room. The market is still sensitive to rates. But the pressure is lower than it was last week.

The Fed story remains one of the biggest reasons tech is holding up. Markets put the chance of another October hike near 24%. One week earlier, those odds were close to 70%.

That is a major reversal. September payrolls rose only 29,000. Unemployment climbed to 4.2%. That weakened the case for another immediate increase. The Fed may still move later. But October now looks far less likely. That shift has helped stocks.

Oil also gave the market some relief. Brent fell 1.89% to $100.32. WTI dropped 1.84% to $89.43. That matters because oil had been one of the biggest sources of inflation pressure.

Lower oil can reduce fuel costs. It can lower transport costs. And it can take some pressure off future inflation numbers. Brent is still near $100. So the problem is not gone. But Monday moved in the right direction.

Monday was not only an Nvidia rally. Ten of the S&P 500’s 11 major sectors finished higher. Materials gained 1.22%. Communication services rose 1.14%. Technology also finished higher.

That is important. Much of the recent market strength has been narrow. Large tech stocks have done most of the work. Monday showed better participation. That makes the rally healthier.

Corporate deals also helped. PTC surged 33% after Schneider Electric agreed to buy the software company for $22.6 billion. RXO jumped more than 22% after C.H. Robinson agreed to acquire the transportation broker in a $5.8 billion cash-and-stock deal.

C.H. Robinson fell nearly 11%. Cerebras Systems gained 9%. Those moves show companies are still willing to spend. Large deals are still getting done. And investors are still rewarding growth. That adds another source of support beyond AI alone.

The biggest risk has not disappeared. Long-term Treasury yields remain high. That means mortgages remain expensive. Corporate borrowing stays costly. Government financing costs stay high. And bonds still offer investors a strong return. That creates real competition for stocks.

Monday’s rally does not erase that. It simply shows that strong earnings expectations can still outweigh it. For now.

Gold slipped about 0.1% to roughly $4,140. The metal was caught between two forces. Lower October hike odds helped. A firm dollar hurt. High long-term yields also remained a problem. Those forces nearly cancelled each other out. That left gold close to flat.

Monday left markets with a short list of hard numbers:

Monday showed exactly what is carrying this market. Fed risk fell. Oil moved lower. AI stocks surged. The Nasdaq hit another record.

Nvidia reached $5.76 trillion. And the rally spread beyond tech. The bond problem is still there. But investors are betting profit growth can outrun it. High yields stayed. Fed risk fell. Tech hit another record.