Wall Street saw gains on Wednesday as the S&P 500 rose 0.6%, reaching a new all-time high after ending a seven-day winning streak the previous day. The Nasdaq composite also set a record, climbing 1.1%. The Dow Jones Industrial Average was nearly unchanged, dipping by just one point.
Recent trading has been subdued due to the latest U.S. government shutdown, which delayed several major economic reports that typically influence market movements. Without these reports or other significant signals, investors have had little new information to guide expectations about potential interest rate cuts from the Federal Reserve—a key factor behind the stock market’s rise since April.
Artificial intelligence (AI) continues to be a driving force in the market. Advanced Micro Devices (AMD) led gains in the S&P 500 with an 11.4% jump following an AI-related deal announcement earlier in the week. Dell Technologies added 9.1% as it highlighted its AI growth prospects, building on Tuesday’s rally.
Poet Technologies increased by 17% after announcing it had raised $75 million to accelerate its expansion in products for AI systems markets.
Other technology companies connected to AI have seen substantial growth this year: Nvidia is up nearly 41%, Oracle has risen over 73%, and Palantir Technologies has surged almost 143%.
However, some analysts are raising concerns about whether tech stock prices have become inflated, drawing comparisons to the dot-com bubble of 2000 when valuations soared before collapsing and halving the S&P 500’s value. The Bank of England warned Wednesday that “on a number of measures, equity market valuations appear stretched, particularly for technology companies focused on Artificial Intelligence,” adding that stocks could be “particularly exposed should expectations around the impact of AI become less optimistic.”
Elsewhere in corporate news, AST SpaceMobile shares jumped 8.6% after Verizon Communications agreed to use its space-based network starting in 2026; Verizon shares fell slightly by 0.2%. Jefferies Financial Group declined by nearly 8% after revealing details about its exposure to First Brands Group, which recently filed for bankruptcy protection.
The price of gold continued its upward trend, surpassing $4,000 per ounce and rising more than 50% this year as investors seek protection against inflation and respond to concerns over growing government debt and global political instability.
The Federal Reserve cut its main interest rate last month for the first time this year and signaled possible further reductions ahead. Minutes from that meeting showed increasing concern among Fed officials about a slowing job market but noted ongoing vigilance regarding inflation rates above their target of 2%.
In international markets, European indexes gained while Asian markets ended lower. In bond trading, yields on U.S. Treasurys edged down slightly.
