The U.S. stock market reached new record highs, led by a strong rally in Nvidia and the tech sector. The S&P 500 index climbed nearly 0.8%, surpassing 5,800 points for the first time, while the Nasdaq Composite rose almost 0.9%. The Dow Jones Industrial Average also gained more than 200 points, closing above 43,000 for the first time. Technology stocks drove the gains, with semiconductor companies showing notable strength, including Nvidia, which surged nearly 3% to close above $138 per share, setting a new record.
Tech Stocks Lead Gains, Semiconductor Sector Shines
Nvidia stood out as a key performer, with its stock price reaching a historic high, up nearly 3%. This rally began in early October after OpenAI announced a $6.6 billion funding round, with investors expecting much of that investment to flow to Nvidia to meet growing demand for AI chips. Other semiconductor companies, such as ASML, Arm Holdings, and Applied Materials, also saw significant gains.
Cryptocurrency Market Rises Alongside Equities
In addition to strong stock market performance, the cryptocurrency market saw a rally as well. Bitcoin surged more than 5% in 24 hours, breaking past $65,700 and drawing attention from investors. Ethereum followed suit, gaining nearly 8% during the day. The rally in cryptocurrencies also boosted related equities, with Coinbase shares jumping more than 8%.
Investors Focus on Earnings Season and Fed Rate Policy
As the third-quarter earnings season kicked off, investors kept a close eye on reports from major banks such as Goldman Sachs, Citigroup, and Bank of America. Uncertainty remains around the Federal Reserve’s future interest rate policy, with some analysts arguing that recent economic data indicates the economy is not slowing as much as expected, reducing the likelihood of a rate cut in November.
Later in the week, retail sales data is expected to provide further insights into how the economy is holding up under the Fed's policies, particularly as the central bank aims for a "soft landing."
