S&P 500, Nasdaq End at Record Highs as Stocks Rebound; Gold Surges Further Past $4,000

U.S. equities rebounded sharply Wednesday, with the S&P 500 and Nasdaq hitting fresh record highs as investors refocused on central bank policy and renewed AI optimism. The Federal Reserve’s September meeting minutes suggested most officials see room for further rate cuts this year, offsetting ongoing concerns about the government shutdown. Tech stocks once again led gains, driven by AMD’s stunning rally and upbeat AI commentary from Dell and Nvidia, while gold’s record-breaking run underscored persistent caution beneath the market’s bullish tone.

Key Headlines & Market Movers

• Fed Minutes Reinforce Rate-Cut Expectations: Markets rallied after the release of the Fed’s September meeting minutes, which revealed that “around half” of participants expect two more rate cuts in 2025. The signal of continued easing helped lift equities even as the data blackout from the government shutdown complicates near-term policymaking. The 10-year Treasury yield held steady near 4.13%, suggesting markets are comfortable with a slower economic backdrop.

• AI Momentum Drives Tech to New Highs: The Nasdaq surged 1.1% and the S&P 500 gained 0.6%, led by another outsized move in AMD, which soared 11% following its landmark partnership with OpenAI. The stock is now up over 40% for the week, its best since 2016, as investors see it emerging as a credible AI chip rival to Nvidia. Dell jumped 9% on raised long-term AI guidance, and Nvidia gained 2% after CEO Jensen Huang said computing demand has risen “substantially.”

• Gold Extends Record Rally, Signaling Underlying Caution: Gold futures climbed another 1.5% to $4,065 an ounce, building on Tuesday’s historic move above $4,000. The metal continues to attract inflows as a hedge against both political gridlock and longer-term currency concerns. Bitcoin rebounded 1.5% to $123,500 after Tuesday’s drop, while the dollar index rose to 98.88 as investors balanced risk-taking with defensive positioning.

• Corporate Movers Highlight Selective Risk Appetite: Beyond AI, traders rewarded select corporate catalysts: Confluent jumped nearly 8% on sale speculation, and AST SpaceMobile rose 9% on a Verizon partnership for space-based wireless. In contrast, Fair Isaac slid almost 10% after pricing pressure from Equifax, while Ford fell on lingering supply disruption concerns. The mixed tape shows investors are still differentiating sharply across sectors despite headline strength.

S&P 500 Sector Performance

Looking Ahead

Markets remain caught between optimism over easier monetary policy and caution surrounding Washington’s impasse. The AI trade continues to dominate equity momentum but rising gold and flat yields hint that investors are hedging aggressively against policy and macro uncertainty. With the government shutdown now stretching past a week, the coming days will test whether the Fed’s dovish tone can keep sentiment buoyant in the absence of fresh economic data.

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