Stock Market Today, Oct. 5: Tech Momentum Lifts Nasdaq as Treasury Yields Surge
2026-10-05 21:13
•Emma Newbery •The Motley Fool
•••••••••• ••••• Axe Cap view
Tech Rally and Rates: What South African Investors Should Watch
Nasdaq's rally on tech optimism contrasts with rising US Treasury yields, creating a complex backdrop for rand investors.
US tech stocks, led by Nvidia’s surge on AI demand, are driving the Nasdaq higher despite US Treasury yields climbing. Rising yields usually hurt growth stocks, but softer US jobs data has eased fears of aggressive Fed hikes, keeping risk appetite alive. For JSE investors, this dynamic matters—Prosus and Naspers, our closest tech proxies, have shown sensitivity to these moves. Expect continued volatility: if the Fed pivots to a more hawkish stance, the rand could weaken, pulling down expensive growth stocks with it. Conversely, if US rate pressures ease, Prosus and Naspers should benefit from improved sentiment on their sizeable offshore revenues. It’s also worth watching USD/ZAR closely, as this currency pair remains the primary channel transmitting global tech swings into the JSE. this is just our opinion and not financial advice
Buy Prosus on dips, as its offshore tech assets should outperform if US rates stabilize. Watch USD/ZAR for rand weakness that could trigger short-term profit-taking. Avoid chasing momentum in purely local sectors until the rand trend is clearer.
- Prosus
- Naspers
- USD/ZAR
- US Fed surprises with aggressive rate hikes
- Rand weakness exacerbates losses in offshore-exposed growth stocks
7/10
The Nasdaq gained 1.05% to 27,477 as tech optimism drove market gains despite rising Treasury yields. The S&P 500 rose 0.66% and the Dow added 0.18%. Key movers included Vaxcyte (up 30% on vaccine success), Genmab (up 11% on lymphoma drug data), and PTC (following a $22.6B buyout offer). Nvidia gained 2.12% amid speculation about reaching a $6 trillion market cap. Investors showed increased appetite for risk following softer-than-expected jobs data, reducing expectations for further Fed rate hikes.
Our take is based on reporting first published by The Motley Fool.