Tech Rally Fuels Record Highs in S&P 500 and Nasdaq Amid Fed Rate Cut Speculations

# Tech Rally Fuels Record Highs in S&P 500 and Nasdaq Amid Fed Rate Cut Speculations

**Note**: This analysis is generated after US market close. Event times in US Eastern Time.

## Market Commentary

**Closing Bell: Overall Market Wrap-Up**

The U.S. stock market concluded today on a mixed note, with the tech-heavy Nasdaq 100 leading gains, while the Dow Jones Industrial Average struggled to maintain bullish momentum. The backdrop of ongoing geopolitical tensions, a looming government shutdown, and dovish signals from the Federal Reserve influenced investor sentiment throughout the session. The S&P 500 managed to close at a record high, marking its 33rd record close in 2025, buoyed by strong performances in the technology sector.

**US Market: Performance of US Indices and Key Drivers**

The S&P 500 closed up by approximately 0.58% at 6,753.72, driven primarily by gains in technology stocks. The Nasdaq 100 outperformed, rising by 1.19% to finish at 25,136.62, reflecting investor enthusiasm around artificial intelligence and semiconductor stocks. AMD’s remarkable 43% rally this week following its partnership with OpenAI significantly contributed to this sector’s performance. Conversely, the Dow Jones Industrial Average slipped marginally by 0.0026%, settling at 46,601.78, indicating a lack of broad-based support among its components.

Market dynamics were heavily influenced by the Federal Reserve’s latest minutes, which revealed a divided outlook among officials regarding potential interest rate cuts. While there was a consensus on the need for lower rates, the exact number of cuts remained a point of contention. This dovish sentiment provided some support for equities but also raised concerns about economic growth.

**Stocks: Notable Stock Movements and Sector Highlights**

Among notable stock movements, AMD stood out with its impressive rally following news of its collaboration with OpenAI, positioning itself as a competitor to Nvidia in the AI chip market. The stock’s surge reflects growing investor confidence in AMD’s capabilities to capture a larger share of the rapidly expanding AI sector.

In contrast, the Dow saw mixed performances from its constituents, with stocks like Boeing and Goldman Sachs struggling. The broader market’s tech-driven rally contrasted sharply with the traditional sectors represented in the Dow.

Gold prices surged past $4,000 per ounce, up 2.17% on the day, as investors sought safe-haven assets amidst the uncertainty surrounding the U.S. government shutdown and geopolitical tensions. The rally in gold is indicative of a broader risk-off sentiment prevailing in the market.

**News from the World Geopolitics and Economy: Global News Impacting Markets**

Global developments continued to weigh on market sentiment. The U.S. government shutdown entered its second week, with no resolution in sight as negotiations stalled. This uncertainty has heightened investor anxiety, contributing to the rally in gold and other safe-haven assets. The political impasse has also raised concerns about the potential economic fallout, with some analysts predicting that prolonged shutdowns could hinder economic growth.

On the geopolitical front, President Trump indicated plans to travel to the Middle East as negotiations for a peace deal in Gaza progressed. The potential for a resolution in this long-standing conflict could have significant implications for regional stability and global markets.

In Argentina, the peso crisis deepened, leading to short-term interest rates soaring above 80% as the government attempted to stabilize the currency. This situation underscores the fragility of emerging markets amidst global economic pressures.

**Europe Markets: Performance of European Indices and Influences**

European markets closed positively, with the DAX rising by 0.87% to 24,597.13, and the CAC 40 gaining 1.07% to 8,060.13. The FTSE 100 also saw a respectable increase of 0.69%, closing at 9,548.87. The positive performance in Europe was bolstered by a favorable earnings outlook in the tech sector, mirroring trends seen in the U.S. markets.

Political developments in France, where President Macron is expected to appoint a new Prime Minister, provided a sense of stability to investors who had been wary of potential

## Performances

### Indices

### FX and Commodities

## Today’s Major Economic Events Summary

On October 8, 2025, key economic indicators revealed significant surprises impacting market sentiment. The Swedish CPI data showed a flat month-on-month growth of 0.0% in September, falling short of the 0.2% forecast, while the year-on-year CPI also disappointed at 0.9% versus an anticipated 1.0%, potentially weakening the SEK.

In Germany, industrial production plummeted by 4.3% in August, starkly contrasting with the forecast of a 1.0% decline, raising concerns about the Eurozone’s economic health and likely exerting downward pressure on the EUR.

Additionally, U.S. crude oil inventories surged by 3.715 million barrels, exceeding expectations of 2.250 million, which could influence oil prices and the USD. Market participants are closely monitoring speeches from key central bank officials, including ECB President Lagarde and Fed Vice Chair Barr, for cues on future monetary policy directions.