Why the Nasdaq Refuses to Break Even With Treasury Yields Above Five Percent, tell me about this news in (https://www.aol.com/articles/why-nasdaq-refuses-break-even-191523000.html)

The article discusses why the Nasdaq-100 index continues to hold up and avoid a sharp decline despite benchmark 10-year U.S. Treasury yields climbing above 5 percenta level that historically puts severe downward pressure on high-valuation, long-duration growth and technology stocks.

Key points covered in the piece include:

• The Conventional Market Dynamic: Higher bond yields typically depress equity valuations by raising discount rates for future cash flows and making risk-free fixed income significantly more attractive relative to equities.

• The Driving Force Behind the Nasdaq’s Resilience: The resilience largely hinges on the massive cash balances and fortress balance sheets of mega-cap tech leaders (including Apple, Alphabet, Amazon, Nvidia, Meta, and Microsoft).

• Balance Sheet Insulation: Unlike debt-reliant growth companies of past market cycles, these top tech giants generate enormous free cash flows and hold substantial cash reserves, allowing them to earn significant interest income rather than suffer from rising borrowing costs.

• Market Concentration Effect: Because the Nasdaq-100 is heavily weighted toward these few mega-cap names, their earnings strength and balance-sheet durability effectively shield the overall index from breaking lower under high interest rates.