Log in to today’s North American session Market wrap for September 22
Markets started the week on the back foot today, but shook off early concerns as US tech shares continued their impressive rise.
This was fueled by a promise from Nvidia to invest up to $100 billion in OpenAI, boosting excitement around artificial intelligence.
The S&P 500 saw gains primarily in the technology sector, marking a new record high for the 28th time this year. Nvidia’s stock rose by about 4%, as its investment is meant to help OpenAI build data centers with its advanced AI chips.
Other tech stocks also did well: Apple’s shares went up 4.3% after an analyst firm, Wedbush, raised its price target for the stock due to strong demand for the new iPhone 17. Tesla’s stock also climbed 1.9%.
The technology sector as a whole led the gains for the S&P 500, ending the day 1.7% higher.
Meanwhile, some officials at the Federal Reserve expressed doubts about the need for further interest rate cuts, even though the central bank cut rates for the first time last week. Both St. Louis Fed President Alberto Musalem and Atlanta Fed President Raphael Bostic said that while last week’s rate cut was a good way to manage unemployment risk, their main goal is still to lower inflation.
However, Fed Governor Stephen Miran, who last week argued for a bigger rate cut, said on Monday that monetary policy is already “well into restrictive territory.”
In other news, the bond market was relatively quiet, with U.S. yields slightly higher. The dollar’s three-day rally has ended, the crypto market was hit, and gold reached a new record high.