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Stocks can reach records even as Treasury yields climb when gains in a few heavyweight companies and stronger earnings outweigh the pressure that higher rates put on valuations. In a CNBC article reproduced by StockScreener, Jim Cramer said Nvidia, Microsoft and Meta were driving an unusually large share of the advance. That helps explain how an index can rise without showing that the average stock is thriving.
What happened on Oct. 5 and Oct. 6, 2026?
The market snapshots changed from one session to the next. On Monday, Oct. 5, the Nasdaq Composite rose about 1% to a record, while the S&P 500 gained 0.66% but ended 0.3% below its Aug. 13 record close. During Monday trading, the 10-year Treasury yield was reported above 5.34% and the 30-year yield approached 5.7%, according to the CNBC story reproduced by StockScreener.
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By Tuesday’s close, the S&P 500 had risen 0.6% to a record, surpassing its prior all-time high from August. The 10-year yield had eased to 5.28% from 5.31% late Monday, according to the Associated Press. The AP also reported that the index was up 23% from its late-March low. These are dated market observations, not live quotes.
Why Cramer pointed to Nvidia, Microsoft and Meta
Cramer’s explanation, as quoted in the reproduced CNBC article, was that a few very large winners were distorting the broader picture. At the prior Friday’s close, Nvidia, Microsoft and Meta together represented nearly 17% of the S&P 500: about 8.5%, 5.8% and 2.4%, respectively. Because the S&P 500 weights companies by market value, gains in those stocks can move the index substantially even if many other shares are flat or falling.
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The CNBC story associated the stocks with catalysts Cramer cited: demand for Nvidia’s chips and AI computing, improved sentiment around Microsoft’s Copilot assistant, and enthusiasm about Meta’s Muse personal-agent app and small-business relationships. Those are Cramer’s explanations for investor interest, not independently established proof of what caused each stock’s move. The story also disclosed that CNBC’s Investing Club Charitable Trust owned all three at the time.
How higher yields put pressure on stocks
Treasury yields matter to equities through more than one channel. Bonds become more competitive with stocks for investors’ money; a higher required return can lower the present value assigned to future corporate earnings; and higher borrowing costs can weigh on economic activity and company profits. These mechanisms can make the market’s valuation more vulnerable even when major indexes are advancing.
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Morgan Stanley’s Andrew Sheets said the S&P 500’s valuation multiple had fallen as yields rose, but rising earnings had more than offset that pressure. In an Oct. 2, 2026 analysis, Morgan Stanley noted that the 10-year Treasury yield had climbed about 100 basis points during 2026 and S&P 500 profits had increased about 30% over the previous year. Sheets’s caution was direct: “Higher yields simply leave less room for earnings disappointment.”
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Why earnings matter—and what remains uncertain
Higher rates and rising stocks are not necessarily contradictory if corporate earnings are growing quickly enough to support prices. Andrew Pauker, a Morgan Stanley U.S. equity strategist, described earnings acceleration as “the big offset” to yield pressure in comments reported by Axios.
For the quarter then being reported, analysts expected nearly 30% year-over-year growth in S&P 500 earnings per share, according to a FactSet estimate reported by the AP. That figure was a forecast, not a completed earnings result. The AP noted that companies needed to meet expectations for the market to sustain record levels; if results disappoint, elevated yields leave less valuation cushion.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What an index record does—and does not—tell you
A record in a capitalization-weighted index says the combined market value of its constituents is high; it does not mean every constituent is setting a high or that gains are evenly distributed. In this episode, the reported near-17% combined weight of Nvidia, Microsoft and Meta is a concrete reason the S&P 500’s headline performance could diverge from the experience of many other stocks.
The useful distinction is between index performance and market breadth. A reader assessing the rally should look beyond the record headline to how many stocks are participating, whether earnings are actually meeting expectations, and whether yields are still rising or have eased. The Oct. 5–6 sequence itself shows why dates matter: yields were higher during Monday trading, then the 10-year yield edged down by Tuesday’s close even as the S&P 500 reached a record.
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