Something unusual is happening on Wall Street.
The Nasdaq just closed at a record 27,477.31, gaining 1.05%. The S&P 500 added 0.66%, while QQQ climbed 0.88%.
And at the same time, the 10-year Treasury yield pushed above 5.3%, its highest level since 2002. 
Normally, that combination would make investors nervous.
Higher long-term yields increase the discount rate applied to future earnings, making expensive growth stocks harder to justify.
Yet tech is still climbing.
So what is holding the Nasdaq up?
Earnings.
The bullish argument is that earnings growth — particularly from the biggest technology companies — is strong enough to offset the pressure from higher rates. Nvidia, Microsoft, Meta and Tesla all helped drive Monday’s advance, with Nvidia reaching another record. 
But there is another side to the story.
The Nasdaq’s strength is increasingly concentrated in mega-cap technology. If earnings expectations remain strong, that concentration can work in investors’ favour.
But if yields keep climbing, the market may eventually demand more than strong headlines and AI optimism.
That creates a fascinating tug-of-war:
📈 Stocks: Earnings expectations are pulling valuations higher.
📉 Bonds: Rising yields are pushing the other way.
🔥 Mega-cap tech: Still attracting the money.
⚠️ The risk: Higher yields eventually become too expensive to ignore.
The market has already shown it can tolerate a 5%+ 10-year yield.
The bigger question is whether it can tolerate 5%+ yields while earnings expectations start getting revised down.
For now, the bulls have the momentum.
But I’m watching the bond market closely.
A record Nasdaq and a 5.3% Treasury yield can coexist — but which one breaks first?
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