October 6, 2026
The Fed's rate hike does not slow Nvidia's climb as chip stocks defy rising bond yields.
What happened
The Federal Reserve raised interest rates, a move that shifted roughly 500 billion dollars in market value. Despite this, chip stocks remained in a steady uptrend. Government bond prices fell, pushing yields down 0.4 percent over the past week.
Why it matters
Higher rates typically make future profits worth less today and raise borrowing costs, hitting growth stocks hardest. Nvidia and other chipmakers are defying that pattern, suggesting demand for their technology is so strong it overpowers the drag from tighter monetary policy.
The case against
The pressure from rising bond yields is building but may not have fully reached equities yet. A delayed reaction could still pull high-flying chip stocks lower if the yield climb persists.
What settles it
Whether the yield on government bonds continues to rise and if chip stocks hold their uptrend.