The Nasdaq Composite set a record closing high for the second straight session. Buying interest in AI-related stocks provided support, while moves in oil and foreign exchange markets jolted sentiment. Expectations for a Federal Reserve rate cut and the outlook for future policy are in focus.
The Nasdaq Composite set a record closing high for the second straight session, while semiconductor giants Micron Technology and SanDisk rose about 5% and 7%, respectively. Selling spread across consumer software stocks, but the broader market was lifted by AI-related names.
Oil prices fell temporarily, but crude and the dollar rose again after President Trump's speech to the United Nations General Assembly. The dollar index held at a high level of 100.59, while the yen came under pressure.
U.S. Treasury yields were trending lower, with the 10-year note at 4.941% and the 2-year note at 4.728%, leaving the 2-year/10-year yield spread at about 21.1 basis points. The market sees the probability of an additional rate hike in October at around 55%.
Gold futures fell amid expectations of an additional rate hike. North Sea Brent crude ended trading at about $99.25, while WTI ended at about $94.99.
The U.S.-China summit scheduled for the 24th, along with the outlooks from the IMF and the Federal Reserve, are among the market's points of focus.