US stocks closed higher on Wednesday as technology shares led gains, pushing both the S&P 500 and Nasdaq Composite to record highs despite lingering uncertainty over the Federal Reserve’s next move. The Nasdaq jumped 1.12% to 23,043.38, buoyed by strong performances from AI-linked megacaps and chipmakers, while the S&P 500 rose 0.58% to 6,753.72. The Dow Jones Industrial Average was little changed at 46,601.78.
AMD surged 11.4%, extending a week-long rally of more than 40%, while Dell climbed 9.1% following multiple price target upgrades. Datadog advanced 6.2% after Bernstein’s optimistic revision, but Intercontinental Exchange fell 2.2% after a downgrade from Barclays. In contrast, Joby Aviation tumbled 8.1% after pricing a discounted US$514 million share sale.
Gains in gold miners mirrored a spike in bullion prices above US$4,000 per ounce, as investors sought safe havens amid political and economic uncertainty caused by the US government shutdown. Newmont and Gold Fields rose 1.7% and 3.7% respectively.
Investors remained cautious as the Federal Reserve’s latest meeting minutes revealed a divided committee, with policymakers balancing concerns over labour risks and inflation. Markets are now pricing in a 92.5% chance of a 25-basis-point rate cut at the end of October. Despite the lack of new economic data due to the ongoing shutdown, optimism around upcoming corporate earnings and sustained AI-driven momentum helped Wall Street maintain its upward trajectory.
Reuters
Related