Nasdaq Soars as Megacap Stocks Rally Amid Treasury Yield Shift

The Nasdaq rose on Friday, driven by megacap technology stocks, while Treasury yields eased from their week's high. Despite a slump in banking shares impacting the Dow, tech giants like Nvidia and Tesla made gains. Investors remain cautious due to the upcoming U.S. election and Federal Reserve rate speculations.

The Nasdaq experienced a boost on Friday, fueled by the strong performance of megacap technology stocks. This rise came as Treasury yields pulled back from earlier highs, setting the stage for next week's expected quarterly results from major Wall Street firms.

In particular, the 'Magnificent Seven' stocks, known for their sensitivity to interest rate changes, saw significant rallies. Nvidia, a leading chip manufacturer, rose by 0.5%, momentarily surpassing Apple as the most valuable company by market capitalization. Meanwhile, Tesla's shares increased by 1.63%, following a remarkable 22% surge the previous day.

The Dow, however, faced downward pressure due to losses in banking stocks like Goldman Sachs and concerns over McDonald's, which is dealing with an E. coli outbreak. The ongoing uncertainty around the U.S. election continues to keep investors wary, though some market movements suggest expectations of a second Trump administration.

(With inputs from agencies.)