Stock market recap: Nasdaq Composite and S&P 500 extend record run as Nvidia fuels AI frenzy

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Nasdaq Composite extends record run

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Global indexes

- S&P 500: 6,693.75 (+0.44%)

- Nasdaq Composite: 22,788.98 (+0.70%)

- Dow Jones Industrial Average: 46,381.54 (+0.14%)

- FTSE 100: 9,230.11 (+0.02%)

- Nikkei 225: 45,493.66 (+0.99%)

- Hang Seng Index: 26,159.12 (-0.70%)

- Shanghai Composite: 3,821.83 (-0.18%)

U.S. markets

Technology remained at the center of Wall Street’s momentum. Nvidia surged after unveiling its plan to invest as much as $100 billion in OpenAI, with an initial $10 billion committed once the AI firm completes its first gigawatt of Nvidia-powered systems. The partnership is expected to generate massive demand for Nvidia’s GPUs, further fueling the AI sector’s virtuous growth cycle.

The investment reflects broader market enthusiasm for AI-linked companies, with investors positioning technology as the primary driver of future earnings growth. However, debate within the Federal Reserve over the trajectory of interest rates continues to temper sentiment, as policymakers weigh cooling labor market data against inflation risks.

European markets

In Europe, stocks edged higher as business activity across the Eurozone hit a 16-month high in September. The pan-European STOXX 600 gained 0.4% to 555.74, supported by gains in France’s CAC 40 (+0.9%), Germany’s DAX (+0.6%), and the U.K.’s FTSE 100 (+0.4%).

The region’s services sector showed resilience, but weakness in manufacturing underscored challenges ahead. German automakers Volkswagen and Porsche both slid 7% after cutting forecasts and scaling back electric vehicle plans due to softening demand, weighing on sentiment in industrials.

Asian markets

Asian equities were mixed. Japan’s Nikkei 225 rallied 0.99% to 45,493.66, rebounding strongly after recent losses and benefiting from robust momentum in tech-related sectors. In contrast, China’s Shanghai Composite slipped 0.18% to 3,821.83, while Hong Kong’s Hang Seng dropped 0.70% to 26,159.12 as traders assessed cautious policy signals from Beijing and braced for Typhoon Ragasa.

Alibaba’s plan to cut its stake in retailer Suning.Com sent shares down 4.8%, dragging broader Chinese equities lower. Meanwhile, Seoul’s markets posted fresh highs, lifted by the global tech rally.

Summary and Outlook

The continued rise of U.S. benchmarks highlights the dominance of artificial intelligence as the market’s defining theme, even as macroeconomic uncertainties—from Federal Reserve policy to China-U.S. relations—linger. With Nvidia’s unprecedented investment marking a new phase of the AI boom, investors are betting that technology will remain the primary growth engine.

Traders will watch closely for Fed Chair Jerome Powell’s upcoming speech and inflation data later this week, which could reset expectations for monetary policy in the months ahead.

We also reported that NVIDIA invests $100 billion in OpenAI AI projects.

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