U.S. stocks pushed to fresh records to start the week, led once again by chipmaker Nvidia, even as bond yields stayed stubbornly high.
The Nasdaq Composite closed up 1.19 percent on Monday at a record 27,190.86, while the S&P 500 added 0.73 percent to 7,722.72 and the Dow Jones Industrial Average rose 0.49 percent to 51,176.96. Nvidia shares climbed more than 2 percent, pushing the company's market value toward $6 trillion, a scale few companies have ever approached. The rally has been driven by continued enthusiasm for artificial intelligence infrastructure spending, with chipmakers remaining the stock market's standout performers through much of 2026.
The gains came despite the 10-year Treasury yield holding near 5.28 percent, close to two-decade highs, as investors continue to digest a run of economic data including a softer-than-expected jobs report last Friday. Deutsche Bank flagged what it called a widening divergence between bond and equity markets, arguing that strong stock gains alongside rising bond yields cannot continue indefinitely without one market or the other adjusting. Separately, the New York Federal Reserve said it was reviewing major banks' exposure to private credit, the fast-growing market for loans made outside traditional banking channels, after JPMorgan disclosed markdowns on some of its private loan holdings.
By Tuesday, the broader market index known as the US500 had extended gains further, trading around 7,781, up about 0.66 percent on the session and roughly 16 percent higher than a year earlier. Gold also rose to around $4,189 an ounce, while bitcoin traded near $86,155, and oil prices eased slightly even as diesel markets stayed tight.
Upcoming corporate earnings season, which begins in earnest in the coming weeks, and whether bond yields continue to climb alongside stock prices.
Why are stocks rising even as bond yields stay high?
Strong corporate earnings and continued enthusiasm for AI-related spending have kept buyers interested in stocks, even as higher yields would normally make bonds more attractive.
What is the concern about private credit?
Regulators are reviewing whether banks are overexposed to loans made outside traditional channels after JPMorgan reported markdowns on some private credit holdings.