Stock Market Holds Near Record Amid Tech Gains/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks hovered near record levels Wednesday as AMD shares soared and IBM advanced on quantum computing news. The Dow surged, while the Nasdaq dipped slightly amid mixed tech performance. Investors remain cautious, watching inflation, interest rates, and market valuations closely.
U.S. Markets + AI Momentum Quick Looks
- S&P 500 holds near all-time high, up 0.1%
- Dow rises 416 points following new record
- Nasdaq dips 0.3% amid tech volatility
- AMD jumps 5.9% on bullish AI growth forecast
- CEO Lisa Su predicts 35%+ annual growth
- IBM climbs 3.2% after quantum computing update
- On Holdings surges 25% on strong quarterly earnings
- Circle Internet Group falls despite beating expectations
- Bond yields ease; 10-year Treasury down to 4.07%
- Traders eye potential Fed rate cut in December
Deep Look: AMD and IBM Drive Market Optimism as Stocks Drift Near Records
NEW YORK — U.S. stock markets were mixed in early Wednesday trading, holding near historic highs as major tech names like Advanced Micro Devices (AMD) and IBM delivered fresh optimism to investors.
The S&P 500 edged up 0.1%, hovering just below its all-time high, while the Dow Jones Industrial Average climbed 416 points, or 0.9%, a day after hitting a new record. The Nasdaq Composite, weighed down by mixed tech movement, slipped 0.3% as of mid-morning.
AMD Fuels Tech Momentum with Bold Forecast
Semiconductor maker AMD became a standout performer, rallying 5.9% after CEO Lisa Su projected over 35% annual compounded revenue growth over the next three to five years, largely driven by accelerating artificial intelligence (AI) adoption.
Su’s comments helped reinvigorate enthusiasm around AI stocks, which have seen volatility in recent weeks as investors question whether their enormous gains can continue. Despite recent pullbacks, chipmakers like Nvidia remain among the year’s top performers, contributing heavily to the S&P 500’s climb.
However, critics have cautioned that AI and Big Tech valuations are beginning to echo the irrational exuberance of the dot-com bubble in the early 2000s.
IBM Pushes Dow Higher With Quantum Breakthrough
Another key contributor to the Dow’s rise was IBM, which gained 3.2% after highlighting significant progress in quantum computing. According to Jay Gambetta, director of IBM Research, the company is moving closer to “bringing truly useful quantum computing to the world.”
The announcement renewed investor confidence in IBM’s future-facing innovation strategy. The broader tech sector has been closely watched amid tightening capital conditions and growing scrutiny over real-world applications of advanced technologies.
Consumer Stocks Show Strength and Surprises
Consumer brand On Holdings delivered a surprise for investors, leaping 25% after reporting much stronger-than-expected quarterly earnings. The Swiss footwear and apparel company’s results were a bright spot in the consumer discretionary sector.
In contrast, Circle Internet Group, a prominent player in the cryptocurrency space, fell 6.6% despite exceeding analysts’ profit expectations. The stock has trended downward since peaking near $300 in June, shortly after its IPO at $31. The result illustrates that even strong earnings may not always be enough to reverse broader investor sentiment.
Valuations and Interest Rates in Focus
Much of the current market narrative revolves around whether stock prices are overstretched, especially in the tech sector. For stock valuations to look more reasonable, two things must happen: either corporate profits surge, or interest rates drop.
On the latter front, U.S. bond yields eased slightly Wednesday. The 10-year Treasury yield slipped to 4.07%, down from 4.13% on Monday, offering some relief to rate-sensitive sectors. Lower bond yields often lead investors to rotate back into equities, particularly growth stocks, as fixed-income returns become less attractive.
Markets are still pricing in about a 66% chance that the Federal Reserve will cut its benchmark interest rate at its next meeting in December, according to data from CME Group. However, Fed Chair Jerome Powell has tempered those expectations, warning that another rate cut isn’t guaranteed given lingering inflation risks.
Global Markets Also Gain Ground
International markets joined the upbeat sentiment, with France’s CAC 40 rising 1.2% and South Korea’s Kospi gaining 1.1%, making them among the top-performing global indexes for the day.
European and Asian markets have remained sensitive to global interest rate moves and U.S. tech performance, and optimism in the AI and computing sectors may offer spillover effects abroad.
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