Stocks Push Higher Ahead of Fed Decision
U.S. markets advanced Wednesday, with major indexes closing in on fresh record highs as investors awaited the Federal Reserve’s policy announcement and continued to pour into technology stocks.
The S&P 500 climbed 0.2%, the Nasdaq Composite gained about 0.6%, and the Dow Jones Industrial Average added 0.6%.
The Fed is widely expected to cut interest rates by 0.25%, marking its first reduction since July. Traders are focused on Chair Jerome Powell’s remarks for any signals about the pace of future rate cuts amid a still-fragile economic data backdrop caused by the ongoing government shutdown.
Nvidia Crosses $5 Trillion as AI Hype Builds
Nvidia (NVDA) once again dominated market headlines, soaring to a record $5 trillion valuation — the first company ever to reach that mark.
The rally followed renewed optimism over the company’s AI chip sales in China, as investors bet that export conditions could loosen. Nvidia’s surge comes just one day after its GTC developer event, where the company announced new advances in its Blackwell AI processors and data center platforms.
The stock has now more than tripled in the past year, with analysts calling Nvidia the “heartbeat of the AI economy.”
Tech Earnings Take Center Stage
Investor attention is now turning to a stacked week of Big Tech earnings, with reports from:
- Alphabet (GOOG), Meta Platforms (META), and Microsoft (MSFT) set for release after Wednesday’s close.
- Apple (AAPL) and Amazon (AMZN) following on Thursday.
Wall Street is watching closely to see if AI-driven investments across cloud and data infrastructure are translating into sustained profit growth. Analysts warn that any slowdown in spending — particularly in data centers and advertising — could weigh on sentiment.
WSA Take
Markets are running on AI-fueled optimism — but also central bank hope.
A Fed rate cut could keep the momentum alive, though tech valuations are beginning to price in perfection.
Nvidia’s $5 trillion milestone underscores the concentration of market power in just a handful of firms driving the next phase of the digital economy.
Still, with earnings from Alphabet, Meta, and Microsoft due after hours, the question is whether AI profits can keep up with the promise — or whether investors will finally demand results.
Read our coverage on the Microsoft OpenAI deal.
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