The Nasdaq hit a record high, but market breadth deteriorated; the 10-year U.S. Treasury yield rose to its highest level since 2002 years ago

AT A GLANCE

U.S. stock indices rose and the Nasdaq hit a record high, but market breadth deteriorated, while U.S. Treasury yields rose to their highest levels since 2002 years ago.

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Technology stocks drove the Nasdaq to another record high, 10-year U.S. Treasury yield briefly hit a 2002-year high

BlockBeats reports that,October 6, according to BIT(bit.com) market data, at Monday's U.S. market close, the Dow was preliminarily up 0.18%, while the S&P 500 Index rose 0.67%, and the Nasdaq rose 1.05%to set a new record high. Large-cap technology stocks continued to support index performance. SpaceX rose nearly 8%; Tesla, Nvidia, and Broadcom each gained more than 2%, while Meta rose 1.9%; TSMC ADR rose 2.75%, with its market capitalization briefly exceeding 2500000000000 USD intraday to set a new record high. However, most semiconductor stocks fell. Intel, Qualcomm,ARM, ASML, and AMD all closed lower, while the Philadelphia Semiconductor Index rose less than 0.3%.

As the indices rose, market breadth continued to deteriorate. Monday marked the 15 consecutive trading day on which the number of U.S. stocks hitting new lows exceeded the number hitting new highs. Fundstrat data showed that only about 3000 of Russell 20%constituent stocks were above the 50-day moving average, while the proportion above the 200-day moving average fell to just over 40%, the lowest level of the year. Goldman Sachs said that some fundamental long-short funds were reducing risk exposure, with overall net positioning at approximately the 5 th percentile over the past 2 years.

In the bond market, the 10-year and 30-year U.S. Treasury yields rose intraday to 5.34%and 5.70%, respectively, both reaching their highest levels since 2002 years ago. The U.S.September ISM services PMI fell to 54.9, but the services price index rose from 72.6 to 74.0, reaching a new high for the 4 year and reinforcing market concerns about inflationary pressure and the duration of high interest rates.

Original link https://m.theblockbeats.info/flash/370354

Key points

According to BIT(bit.com) market data, at Monday's U.S. market close, the Dow was preliminarily up 0.18%, while the S&P 500 Index rose 0.67%, and the Nasdaq rose 1.05%to set a new record high.
The original article stated that large-cap technology stocks continued to support index performance: SpaceX rose nearly 8%, while Tesla, Nvidia, and Broadcom each gained more than 2%, and Meta rose 1.9%。
TSMC ADR rose 2.75%, with its market capitalization briefly exceeding 2500000000000 USD intraday to set a new record high.
Intel, Qualcomm,ARM, ASML, and AMD closed lower, while the Philadelphia Semiconductor Index rose less than 0.3%。
Monday was the 15 consecutive trading day on which the number of U.S. stocks hitting new lows exceeded the number hitting new highs.
Fundstrat data showed that, among Russell 3000 constituent stocks, only about 20%were above the 50-day moving average, while the proportion above the 200-day moving average fell to just over 40%, the lowest level of the year.
Goldman Sachs said that some fundamental long-short funds were reducing risk exposure, with overall net positioning at approximately the 5 th percentile over the past 2 years.
10-year and 30-year U.S. Treasury yields rose intraday to 5.34%and 5.70%, respectively, both reaching their highest levels since 2002 years ago.
U.S.September ISM services PMI fell to 54.9, while the services price index rose from 72.6 to 74.0, reaching a new high for the 4 year.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

Although the broad market indices rose, the gains were mainly supported by several large-cap technology stocks, and the performance of many individual stocks did not improve in tandem. Meanwhile, U.S. Treasury yields rose and the services price index increased. The original article stated that these data reinforced market concerns about inflationary pressure and the duration of high interest rates.

Why it matters to readers

The simultaneous occurrence of new index highs and deteriorating market breadth indicates that strong performance is concentrated in a smaller number of stocks. Rising U.S. Treasury yields also mean that the market is facing higher interest rates. It will be important to observe whether the index rally can gain support from more constituent stocks.

Beginners should not look only at whether the Nasdaq is reaching new highs; they should also consider whether the rising stocks are sufficiently broad-based and whether U.S. Treasury yields and inflation-related data continue to rise. The data in the article reflect a snapshot of the market and cannot, on their own, determine future gains or losses.

Risks and unknowns

The closing data are described as “preliminary,” and it is not stated whether the final data were revised.
Most market and institutional data were relayed from the original article, which did not provide BIT independent source links for Fundstrat and Goldman Sachs.
The original article did not specify what type of market instrument “SpaceX rose nearly 8%” referred to.

The Nasdaq hit a record high, but market breadth deteriorated; the 10-year U.S. Treasury yield rose to its highest level since 2002 years ago

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