Market Close: Stocks Higher, Nasdaq Hits Record, Rising Yields Offer Investors Choice • 10/5/26

0:01See NBC Business News Update. I'm Jessica Ettinger. Wall Street opens Tuesday morning after a record-setting and winning start to the week. The major average is all higher. The Dow finished the day up 90 points. It was led higher by shares of Visa up 2.5%. The S &P 500 index up 51 points. That was a half percent. And the Nasdaq added 286 points, more than 1%. Companies whose shares hit fresh all-time highs on Monday include Marathon, Petroleum, Valero, Johnson Controls, CrowdStrike, and NVIDIA. NVIDIA building on the record high it hit on Friday. Shares were up 2%. The yield on the 10-year Treasury hit 5.4 % Monday before pulling back, giving some investors a reasonable alternative to stocks, the Terra trade.

0:55Here's a take from Matrix Advisors David Katz on CNBC. For balanced accounts, we like bonds a great deal. We think your sweet spot is two to six years by a laddered portfolio. You can lock in 5%. We think maybe a month from now you might feel silly, but we do think six months, 12 months from now, you're going to be really happy having locked in 5%. And here's BlackRock's Rick Reeder on CNBC on stocks. You've got an economy that's growing. Our now cast on current growth is over 7%. Our sense is that you're peaking now in terms of that growth. Can you still grow? I'm going to grow in 20, 25 % earnings growth.

1:32I still think you can grow at 10 to 15%. It's okay. It's pretty good. I think the volatility of equities will be higher. Mortgage rates are hanging around 7.5%, according to Mortgage News Daily, at 7.57 % for a 30-year fixed home loan. That is a big shock for people. who really were hoping for lower rates this year to buy a home. The 7 % interest rate is a very real barrier for people psychologically. And this is not unprecedented. We were here in October of 2022. What we saw immediately when rates crossed into the sevens was higher cancellation rates for a couple of weeks than it normalized to year-over-year numbers.

2:12What this means is that by the end of the year, we will probably have a softer market than we had in the beginning of the year. That's EXP Realty's CEO, Leo Pereja, on CNBC. He notes that some of the new construction home builders are buying down interest rates for buyers just to get them in their completed new homes. And people who are looking for a house should look at new construction. Oil is getting out of the Middle East. The East-West pipeline is back up. Ship-to-ship transfers are happening. But oil prices aren't coming down because all of this is expensive. And Iran's oil has been blocked, hurting that country's economy.

2:53Here's Kepler's Matt Smith on CNBC. Well, our base case, we're not going to see diplomacy here. You're essentially seeing Iran running out of their cash flows here. And so they're going to get increasingly more desperate. The concern with that means they get increasingly more dangerous. General Motors will be coming with more hybrid vehicles as it sees its rivals like Hyundai selling so many. GM executives telling CNBC, we're not tone deaf to our customers. More hybrids are coming. The GM vice president of propulsion engineering confirmed the automaker's hybrid plans, but gave no dates. On Tuesday's watch list, it's one month till the midterm elections.

3:33Amazon starts its prime day sale and we get earnings from Lamb Weston and Constellation Brands. Jessica Ettinger, CNBC. From gas prices to housing prices, from government spending to consumer spending, from the AI boom to the data center backlash. How will this election hit your pocketbook and your portfolio? Continuing coverage, the economy election, CNBC. This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Schwab Market Update, an original podcast from Charles Schwab, provides an information-packed daily market preview on stock updates, U.S. and global economic news, monetary policy decisions, and key results and statistics that may impact your trading.

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