Nasdaq Reaches 23rd Record High of 2026 as AI Rally Lifts US Stocks
Key Takeaways
- •US stock index futures rose early Tuesday, with Dow futures up 317 points, S&P 500 futures gaining 0.5%, and Nasdaq 100 futures advancing 0.7% ahead of the regular session.
- •The Nasdaq Composite closed at its 23rd record high of 2026, with the index reaching an all-time high of 27,450, its third record in 10 trading sessions.
- •Nvidia shares climbed more than 2% in premarket trading, pushing its market value closer to $6 trillion, supported by strong earnings from partner Foxconn that pointed to continued global AI infrastructure demand.
- •The 10-year Treasury yield held near 5.301%, its highest closing level in 24 years, while the 30-year yield stood at 5.663%, a level last seen in 2002.
- •Brent crude fell 0.7% to $99.62 a barrel, dropping below $100 for the first time in weeks, as rising Middle East supply and a Saudi price cut for Asian buyers weighed on oil.
US stock futures moved higher early Tuesday as technology shares extended their rally, even as bond yields remained elevated and diesel costs increased. Dow Jones Industrial Average futures rose 317 points, or 0.6%, while S&P 500 futures gained 0.5%, leaving the index within 1% of its all-time high. Nasdaq 100 futures advanced 0.7%. Futures trading offers an early read on positioning ahead of the regular session on Wall Street.
AI Rally Drives Technology Gains
The tech-heavy Nasdaq Composite closed at its 23rd record high of 2026 during the previous session. Gains were led by Big Tech companies as investor attention remained focused on growth tied to artificial intelligence. The pace of records reflects how much of this year’s market leadership has come from companies tied to AI spending.
BREAKING: Nasdaq just hit a new ALL TIME HIGH of 27,450 for the first time in history. This is its third record high in the last 10 trading sessions. pic.twitter.com/GZXyL9CnSy — Bull Theory (@BullTheoryio) October 5, 2026
https://x.com/BullTheoryio/status/2107160861249011723?ref_src=twsrc%5Etfw
Nvidia shares climbed more than 2% in premarket trading, bringing the company’s market value closer to $6 trillion. The company designs the processors used to train and run AI models, placing it at the center of the spending wave on AI infrastructure. The stock also received support from an update involving one of Nvidia’s Asian partners. Foxconn, the Taiwanese manufacturer formally known as Hon Hai Precision Industry and one of the world’s largest contract electronics makers, reported strong earnings on Monday, with the results pointing to continued global demand for AI infrastructure and hardware.
Broad optimism about AI has, for now, overshadowed concerns elsewhere in the economy. Investors have continued to buy stocks during price declines.
Treasury Yields Remain Elevated
Treasury yields remained a concern for some investors. The 10-year Treasury yield was little changed at 5.301% early Tuesday, its highest closing level in 24 years. The 30-year yield held at 5.663%, a level not seen since 2002. Long-term Treasury yields serve as a reference point for borrowing costs across the economy, from corporate debt to mortgages, which is why their return to multi-decade levels is being watched closely.
Both yields reached higher levels on Monday, with the 10-year yield touching 5.349% and the 30-year yield reaching 5.703%. Despite the elevated borrowing costs, stock buyers have continued to view equities as a hedge against inflation, helping offset some concerns about higher yields.
Investors are also watching Tuesday’s auction of three-year Treasury notes, valued at $58 billion. The US government raises funds through note and bond auctions, and demand at the sales is tracked as a gauge of investor appetite for government debt. Short-term bond rates are currently considered attractive to buyers. Expectations for a Federal Reserve rate hike in October have declined following weak US jobs data released last Friday. Given those conditions, markets expect the auction to proceed smoothly.
Oil Prices Drop Below $100
Oil prices fell Tuesday, adding to the positive tone in US equities. Brent crude, the international benchmark, declined 0.7% to $99.62 a barrel, moving below $100 for the first time in weeks. West Texas Intermediate, the US benchmark, dropped 1.1% to $88.41 a barrel.
Analysts attributed the decline to rising supply from the Middle East, where producers in the Persian Gulf region have been adjusting output levels. Kuwait said it was producing at 75% of pre-war levels. Saudi Arabia also lowered the official selling price of its Arab Light crude for Asian buyers taking November shipments. Official selling prices are one of the tools producers use to compete for buyers in specific regions.
Lower energy costs have helped ease broader inflation concerns. No major economic reports are scheduled for release in the United States this week, leaving AI-driven stock speculation and inflation concerns as the main forces shaping market moves.
Earnings are expected Tuesday from Constellation Brands and Lamb Weston Holdings. The economic calendar is otherwise quiet for the remainder of the week.
Source: https://coincentral.com/pre-market-update-nasdaq-hits-record-high-as-ai-rally-pushes-stocks-higher/
