Wall Street Stocks Rally as Gold Keeps Setting Records/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street resumed its rally Wednesday, led by gains in tech and artificial intelligence stocks, while gold prices surged past $4,000 an ounce. The S&P 500 neared another record high as investors anticipate more interest rate cuts from the Federal Reserve. AI-related optimism and inflation concerns continue to dominate market sentiment.
Wall Street and Gold Quick Looks
- S&P 500 rises 0.4%, near record high
- Dow up 79 points, Nasdaq gains 0.7%
- Gold surges past $4,000/oz, up 50% in 2025
- AI stocks like Dell, AMD, Nvidia fuel momentum
- Poet Technologies rallies 9.6% on $75M investment
- Fed minutes expected later today on rate policy
- Bank of England warns of AI bubble risk
- Jefferies dips 1% after First Brands disclosure
- AST SpaceMobile jumps 8.2% on Verizon deal
- 10-year Treasury yield slips to 4.11%
Deep Look: Wall Street Resumes Climb as Gold Hits Record, AI Stocks Surge Again
NEW YORK — Wall Street rebounded Wednesday following a brief pause in its rally, as investors returned to buying stocks—particularly in the artificial intelligence sector—while gold continued its meteoric rise, soaring above $4,000 per ounce for the first time ever.
The S&P 500 climbed 0.4%, on track to surpass the record high it hit just two days earlier. The Dow Jones Industrial Average added 79 points, or 0.2%, and the Nasdaq Composite led the way with a 0.7% increase.
Markets are building on months of momentum driven by a combination of Federal Reserve rate cut expectations, AI-fueled investor enthusiasm, and geopolitical uncertainty, which is pushing more money into safe-haven assets like gold.
AI Stocks Continue to Dominate
AI-related companies once again took center stage:
- Poet Technologies surged 9.6%, following up Tuesday’s 23.5% rally after announcing a $75 million funding round to expand its high-speed optical engine product line for AI systems.
- Dell Technologies gained 7.7%, the top performer in the S&P 500, as investors piled in following its bullish outlook on AI-driven growth.
- Advanced Micro Devices (AMD) rose 4.4%, building on gains from its announcement earlier this week of a new AI partnership.
Even before today, AI stocks had already produced staggering returns in 2025:
- Nvidia is up nearly 40% year-to-date.
- Oracle has climbed 70%.
- Palantir Technologies has more than doubled, rising 140.9%.
The surge has drawn comparisons to the dot-com bubble of the early 2000s, raising concerns that valuations could become unsustainable.
“On a number of measures, equity market valuations appear stretched,” the Bank of England warned in a report released Wednesday, citing a “rising risk of a sudden correction” in tech stocks tied to AI. The central bank added that major indices are increasingly exposed to swings in sentiment around AI.
Still, proponents argue that today’s AI rally is underpinned by stronger fundamentals than the dot-com era, with leading companies posting real profits and revenue growth.
Gold Shines Amid Inflation and Geopolitical Uncertainty
Gold prices soared past $4,000 per ounce, rising more than 50% in 2025, as investors hedge against inflation risks, rising government debt, and political instability around the globe.
The ongoing U.S. budget impasse and broader fiscal concerns are also feeding into the demand for gold, which is viewed as a safe-haven asset during periods of market stress.
With the Federal Reserve expected to release minutes from its last meeting later today, traders are watching closely for further signals on interest rate cuts. The Fed recently lowered its benchmark rate for the first time in 2025 and hinted at more cuts to come, citing a slowing job market even as inflation remains elevated.
“Lower rates tend to support risk assets like tech stocks and safe-haven assets like gold,” said one analyst.
Other Movers on Wall Street
- AST SpaceMobile jumped 8.2% after Verizon Communications agreed to use its satellite network to provide backup service to mobile customers starting in 2026. Verizon shares dipped slightly by 0.5%.
- Jefferies Financial Group fell 1% after disclosing its exposure to First Brands Group, an auto parts maker that filed for Chapter 11 bankruptcy last week.
Bond Yields and Global Markets
In the bond market, the yield on the 10-year U.S. Treasury fell slightly to 4.11%, down from 4.14% on Tuesday, reflecting steady investor demand for safer assets even as equities climb.
Overseas, European markets traded higher, while Asian indices closed mixed, reflecting caution ahead of U.S. data releases that have been delayed due to the recent government shutdown.
With the next major catalyst likely to come from the Fed’s meeting minutes this afternoon, traders are positioning cautiously, balancing excitement over tech and AI growth with concerns about inflation and overvaluation.
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