S&P 500, Nasdaq Hit Record Highs on AI Rally

AI enthusiasm and rate-cut bets powered fresh U.S. equity records, while a data blackout from the U.S. shutdown and a ‘hot’ global growth backdrop framed policy risk into today’s FOMC minutes.

TL;DR:

• 📈 S&P 500, Nasdaq set new records
• 🤖 AMD jumps on OpenAI chip deal
• 🌡️ Global economy running ‘hot’ on policy
• 🏛️ U.S. shutdown delays key economic data

S&P 500, Nasdaq Set New Records

U.S. stocks closed at all-time highs as investors piled into AI leaders and leaned into expectations for further Federal Reserve easing, reinforcing momentum in mega-cap tech. Futures softened modestly overnight as traders awaited fresh policy cues from Fed speakers and today’s FOMC minutes for clarity on the path to potential rate cuts. Source Source

AMD Jumps on OpenAI Chip Deal

Advanced Micro Devices surged about 24% after announcing a significant AI chip supply agreement with OpenAI, intensifying the rotation into AI infrastructure and compute plays. The move bolstered broader risk appetite, with semiconductor peers and AI-adjacent names extending gains as investors priced in durable revenue visibility from AI demand. Source

Global Economy Running ‘Hot’ on Policy

Reuters reported the global economy—particularly across the G7—continues to run “hot,” fueled by aggressive fiscal and monetary policies that risk rekindling inflation and stoking asset bubbles. Markets balanced the growth impulse against policy uncertainty, with rate-cut expectations persisting even as inflation trends hover near 3% and the Fed is seen edging toward 3.5% by year-end. Source

U.S. Shutdown Delays Key Economic Data

The ongoing U.S. government shutdown disrupted the publication of crucial economic reports, blurring real-time reads on growth and inflation for policymakers and traders. With traditional indicators offline, markets leaned on high-frequency proxies and market-based measures, keeping rate and FX volatility risk elevated into the release of the FOMC minutes. Source