U.S. stocks closed higher on Wednesday as tech shares and AI-related companies powered the S&P 500 and Nasdaq to new all-time highs, offsetting investor concerns over the Federal Reserve’s next interest rate move.
The S&P 500 gained 0.58% to close at 6,753.72, while the Nasdaq Composite jumped 1.12% to 23,043.38. The Dow Jones Industrial Average was little changed at 46,601.78.
Chipmakers led the rally, with AMD surging 11.4%, extending its weeklong 43% gain. Dell climbed 9.1% after several analysts raised price targets, and Datadog rose 6.2%. Energy and consumer staples lagged, while gold prices topped $4K per ounce as investors sought safe-haven assets amid global uncertainty.
Market optimism came despite the ongoing U.S. government shutdown, which has limited access to key economic data. Investors are now watching for the Federal Reserve’s policy meeting minutes and the upcoming Q3 earnings season for signals on future rate cuts.
According to CME data, traders see a 92.5% chance that the Fed will cut rates by 25 basis points at its next meeting on Oct. 29.
