The S&P 500 and Nasdaq Composite set new intraday and closing records on Wednesday, building momentum despite ongoing concerns about artificial intelligence valuations and the second week of a US government shutdown. The benchmark S&P 500 rose 0.58 per cent to 6,753.72, lifted by strong gains in technology, utilities, and industrials, all three sectors closing at record highs. The Nasdaq advanced 1.12 per cent to 23,043.38. The Dow Jones Industrial Average edged down just 1.20 points to 46,601.78.
Federal Reserve minutes draw muted reaction
Markets showed little response to the release of minutes from the Federal Reserve’s September meeting, when policymakers cut interest rates for the first time this year. The document revealed a divided Fed, with some members pressing for additional cuts while others preferred a more cautious approach.
Nvidia lifts AI sentiment
Chipmaker Nvidia gained 2 per cent after CEO Jensen Huang told CNBC that computing demand has risen sharply over the past six months. He confirmed Nvidia’s participation in funding Elon Musk’s artificial intelligence startup xAI and said he was “super excited” about the financing.
The bounce followed Tuesday’s decline, when Oracle’s weaker-than-expected cloud margins raised fears about the durability of AI profits. Analysts noted parallels with the late-1990s dot-com boom, but many see scope for further gains before the rally peaks.
Government shutdown drags on
Meanwhile, Washington’s budget deadlock entered an eighth day as the Senate once again rejected competing stopgap funding bills. This was the sixth failed attempt to reopen the government. While the shutdown has so far had limited market impact, risks are growing. President Donald Trump has suggested that not all furloughed federal employees will receive back pay, and active-duty military personnel could miss pay cheques scheduled for October 15.
Local outlook
In Australia, the ASX 200 is set for a stronger open, with futures up 38 points, or 0.4 per cent, to 9009. REA Group’s annual general meeting begins today at 9am AEDT.
