Wall Street Closes Higher as AI Overcomes High-Interest-Rate Shock, Nasdaq Hits Record High

Major U.S. stock indices closed higher across the board.

In particular, the Nasdaq rose by more than 1%, while the S&P 500 stayed above the 7,700 mark for the second consecutive day.

With the exception of real estate, all sectors gained, with communication services and energy rising by more than 1%.

Despite the yield on the 10-year U.S. Treasury note surging to a 24-year high, the tech-heavy Nasdaq index broke its all-time high.

Backed by solid demand for AI computing and earnings growth power, AI-related stocks overpowered the high-interest-rate shock.

Nvidia rose 2% to reach a record high, and major tech stocks also showed strength across the board.

Additionally, market sentiment was supported by the London Stock Exchange Group forecasting that third-quarter earnings for S&P 500 companies will increase by more than 30% year-on-year, driven by the strong performance of AI-related firms.

Moreover, international oil prices fell for the second consecutive trading session due to factors such as the G7's planned release of strategic petroleum reserves, and the fading possibility of an additional Federal Reserve rate hike in October—following last week's sluggish employment data—provided significant relief to the market.

However, selling pressure continued in the Treasury market, pushing the yields on the 10-year and 30-year notes to their highest levels since 2002, while the Institute for Supply Management's September services PMI registered at 54.9, showing a slight slowdown from the previous month.

Market attention is now turning to the minutes of the September Federal Open Market Committee meeting, to be released on the 7th, and the upcoming third-quarter earnings season.
※ Please note: This article was translated by AI and may contain errors.