US stocks rose on October 5, 2026, as investors reacted to fluctuating bond yields, eurozone economic uncertainty, and the upcoming earnings season. The Dow Jones Industrial Average increased by 0.2%, the S&P 500 rose by 0.7%, and the Nasdaq Composite achieved a new record with a 1% gain. Nvidia (NVDA), a leader in AI chips, also reached an all-time high during the trading session.
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The 10-year Treasury yield climbed 3 basis points to 5.31%, remaining near its highest levels since 2002. Despite this rise in yields, stocks continued their rally from Friday, partly due to reduced expectations for Federal Reserve rate hikes. The day featured a light schedule for earnings and economic data, with the ISM services index showing a slower expansion in September, dropping to 54.9 from 55.4 in August. The prices index also indicated rising cost pressures, moving from 72.6 to 74.
Market attention will shift to the quarterly results from companies like Levi Strauss & Co. (LEVI), Applied Digital (APLD), PepsiCo (PEP), and Delta Air Lines (DAL) in the coming days, as the Q3 earnings season prepares to intensify in mid-October.
Despite challenges from the bond market and geopolitical tensions in the Middle East, the market has proven resilient. Brent crude oil prices above $100 per barrel have led some analysts to predict potential pullbacks, while others foresee opportunities for further gains.
Nvidia stock traded around $237 per share, surpassing its prior record of $235.74 set in May, further solidifying its position in the booming AI industry, with notable investments in firms like OpenAI and CoreWeave.
In Brazil, stocks surged as Flávio Bolsonaro captured an unexpected lead in the first round of the general election, resulting in significant gains for local companies such as PicS, Nu Holdings, and MercadoLibre. JPMorgan upgraded Brazilian stocks to an “overweight” rating, anticipating a favorable political climate following the election results.
Additionally, Taiwan Semiconductor Manufacturing Company (TSM) approached intraday all-time highs after Elon Musk confirmed discussions for collaboration on his Terafab semiconductor project. Shares of SpaceX (SPCX) climbed 5% following positive analyst ratings, while Cerebras (CBRS) stocks rose after OpenAI's CEO praised its partnership.
Amidst the ongoing global bond sell-off, pressures are felt worldwide, with significant rises in yields across multiple countries due to escalating inflation and rising national debts. While concerns about inflation persist, recent economic indicators suggest robust growth in developed markets, complicating the central banks' rate-cut considerations.