NEW YORK — The Nasdaq Composite rose 1.1% to close at a record high of 27,477.31, driven by gains in major technology stocks. The S&P 500 rose 0.66% to 7,773.95, finishing 0.3% below its August 13 record close.

Nvidia stock rose 2.1% to secure its first record close since May, while Meta stock rose 1.9%. Microsoft stock rose 1.5%, contributing to the index's advance alongside Broadcom, which rose 2.1%. The Dow Jones Industrial Average rose 0.2% to 51,267.90.

As of the previous Friday's close, Nvidia accounted for approximately 8.5% of the S&P 500. Microsoft accounted for approximately 5.8% of the index, and Meta accounted for approximately 2.4%. Together, the three companies represented nearly 17% of the S&P 500 heading into the week.

The rally occurred as the 10-year U.S. Treasury yield rose above 5.34%. The 30-year Treasury yield approached 5.7%.

Cramer said in a podcast interview that there is tremendous distortion caused by some very big winners, namely Nvidia, Microsoft and Meta.

Cramer also addressed the relationship between equity markets and bond yields. He said that many stocks cannot rally until interest rates reach a level where selling bonds is plain stupid. He added that the only conclusion is that the bond sellers so far have been anything but stupid, and his money is on them to tell us where we're going next.

Nvidia has an expanded $235 billion stock buyback program. Cramer discussed the mechanics of such programs during a livestream. He said that when doing a buyback, companies have to stay active and cannot walk away at 3:20 and leave the market open to sellers, emphasizing that buybacks cannot be episodic.

Cramer's Charitable Trust owns shares of Meta, Microsoft, and Nvidia. The trust held 1.2 million shares of Microsoft as of the end of Q2 2026, according to Form 13F filings with the SEC. The trust also holds positions in Home Depot, Johnson & Johnson, Goldman Sachs, and Boeing.

Economic data provided further context for market movements. Analysts forecast S&P 500 company profit growth of nearly 30% from a year earlier for the July through September quarter. The Institute for Supply Management reported that U.S. services sector activity grew in September for the 27th consecutive month.

Why It Matters

The Nasdaq Composite's record close shows the continued influence of a small group of technology stocks on broader market indices. Nvidia accounted for 8.5% of the S&P 500 as of the close on September 27, 2026, according to S&P Global data. This concentration mirrors patterns from previous years, though the specific drivers have shifted.

In 2023, the Nasdaq Composite had a record high of 19,353.41, but it was not driven by the same three stocks (Nvidia, Meta, Microsoft) that are currently leading the index. In September 2025, the Nasdaq Composite hit a record high of 24,987.55, driven by similar tech stock momentum despite rising Treasury yields. In 2023, the Nasdaq Composite reached record highs driven by a small group of tech stocks, despite rising Treasury yields, which led to concerns about market volatility and overvaluation.

Timeline

On October 5, 2026, the 30-year U.S. Treasury yield approached 5.7%, reflecting continued pressure from rising interest rates and investor concerns about long-term economic stability. Also on October 5, 2026, Nvidia’s stock value reached $5.76 trillion as it climbed 2.1% to set a new record close, according to reports. On the same day, the 10-year U.S. Treasury yield reached 5.34%, marking the highest level since 2002, according to the Federal Reserve Economic Data (FRED).

What's New

Context from 2023 shows the Nasdaq Composite reached record highs driven by a small group of tech stocks, despite rising Treasury yields, which led to concerns about market volatility and overvaluation. Market data indicates the Nasdaq Composite closed at a record high of 27,477.31, with the 10-year Treasury yield closing at 5.31%, the highest since April 2002. Filings reveal Jim Cramer's Charitable Trust held 1.2 million shares of Microsoft as of the end of Q2 2026, according to Form 13F filings with the SEC. In commentary, Jim Cramer emphasized regarding Nvidia's buyback program that companies must remain active throughout the trading day and cannot disengage prematurely, noting that buybacks must be sustained. Cramer also said he would buy some J & J if he did not own it right now.