Wall Street started the week extending its record-breaking run, with all major equity indices nearing or marking new closing highs thanks in large part to bullish momentum in technology and AI-focused names. Optimism surrounding recent Federal Reserve rate cuts provided an additional tailwind for risk assets, as traders digested upbeat macroeconomic signals and awaited further economic data releases later in the week. Despite some early volatility, the appetite for equities remains strong, even as only select sectors—most notably communication services and technology—led gains.
Major Index Performances
- S&P 500: Rose 0.44%, setting a new closing high of 6,693.75.
- Dow Jones Industrial Average: Added +.14% to 46,381.54, buoyed by strength in its tech constituents and a supportive macro backdrop.
- Nasdaq Composite: Up 0.7% to 22,788.98, powered by surging AI stocks including NVIDIA and Apple.
- Russell 2000: rose .59% to 2,463.34, outperforming broader indices in relative terms as small-caps continued their rebound.
Macroeconomic Reports
Today’s calendar was relatively light, with the Chicago Fed National Activity Index released in the morning indicating steady but unremarkable growth. FOMC speakers provided commentary on the balance of risks, emphasizing ongoing support for employment alongside vigilance on inflation. Recent data suggest resilient consumer spending in high-income demographics and accommodative financial conditions; the housing market remains challenged with residential investment still sliding.
Notable Stock Moves & News
Apple (AAPL): Shares surged over 4.31% to $256.08, buoyed by robust demand for the newly launched iPhone 17 and accompanying product upgrades. Shipping dates for flagship devices are already extended, particularly in China, signaling strong market reception despite lingering concerns over tariffs and modest AI investments compared to competitors. The stock rebounded past $255, closing in on yearly highs as investor sentiment turned positive.
Broadcom (AVGO): AVGO saw notable volatility, declining nearly 1.61% after recent AI developments and an ex-dividend date. While sales in its AI semiconductor segment soared 63% year-over-year, shares felt pressure from regulatory headlines and insider selling; analysts retained a cautious but constructive outlook with a $420 price target. Broadcom also announced a $0.59/share cash dividend, marking a strategic pivot in capital allocation.
NVIDIA (NVDA): Shares rocketed over 3.97% to $183.61 as the company unveiled a $100 billion strategic investment in OpenAI, the creator of ChatGPT, to expand AI data center infrastructure. This blockbuster partnership sparked broader gains across semiconductors and helped push the S&P 500 to a fresh record. CEO Jensen Huang highlighted the next-gen Vera Rubin platform as a centerpiece for future AI deployments, projecting rapid adoption in 2026.
Tesla (TSLA): Stock rose 1.91% to $434.21, marking 9 wins in the last 10 sessions. Positive investor sentiment was fueled by expansion plans for autonomous robotaxi services in Arizona and Nevada, CEO Elon Musk’s $1 billion stock acquisition, and bullish analyst upgrades with price targets up to $548. Recent regulatory approvals signal rapid progress on Tesla’s self-driving ambitions.
Meta Platforms (META): The social media giant fell 1.63% to $765.16 as investors recently cheered robust Q2 earnings and ambitious AI integration across its platforms, including ads within WhatsApp and innovative smart glasses. Meta’s aggressive capital expenditures and vision for “personal superintelligence” position the firm as a key future player in AI-powered digital services.
McDonald’s (MCD): Shares trade around $302.99, +.20%, relatively stable for the day, reflecting neutral sentiment amid strong Q2 earnings and continued growth in digital and value offerings.
Tariff News
U.S. government’s imposition of a $100,000 fee for H-1B worker visas fueled regulatory and labor concerns, particularly in tech, but had only medium-term effects on equity valuations today. Existing tariffs and countermeasures remain a background risk for supply chains, especially in electronics.
Treasury Market: Yield Curve & FOMC
- 2-Year Treasury: Yield closed at 3.613% as investors parsed FOMC statements on labor and inflation trends.
- 10-Year Treasury: Closed at 4.154% as rate cut optimism offsets volatility, maintaining historically accommodative conditions.
- FOMC Announcements: The Fed confirmed a 25bps rate cut in September, signaling two more possible reductions by year-end amid slowing job growth and persistent inflationary pressures.
Commodity & Crypto Closings
- Gold: Closed at a fresh all-time high of $3780.80/oz., gaining 2.02%.
- Silver: Traded 3.16% higher to $44.31/oz, following gold’s lead.
- Oil: Slightly declined by .06% to $62.64/bbl, reflecting tempered demand forecasts and a balanced supply outlook.
- Bitcoin: Dropped sharply to the $112,2354.90 range, with leveraged long positions liquidated amid a broader crypto retracement.
