Stocks Get Tech Lift as Nvidia Rekindles AI Wagers: Markets Wrap

This content was published on September 22, 2025 - 22:00

10 minutes

(Bloomberg) — Wall Street traders defied calls for a breather after a $15 trillion stock rally from April lows, with Nvidia Corp. boosting optimism on artificial intelligence after pledging to invest as much as $100 billion in OpenAI.

Tech led gains in the S&P 500, with the US equity benchmark hitting its 28th record this year. The world’s largest chipmaker rallied about 4%. Its investment is intended to help OpenAI build data centers with a capacity of 10 gigawatts of power using Nvidia’s advanced AI chips to train and deploy OpenAI’s models.

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At a time when equities are yet again at all-time highs on the back of strength in big tech, investors should be “responsibly bullish,” according to Tony Pasquariello at Goldman Sachs Group Inc.

“Do I love the positioning setup and tactical risk/reward? I don’t,” he wrote. “Do I think you should be stepping in front of the US mega cap tech freight train? I don’t.”

Action was relatively muted in the bond market, with US yields slightly higher ahead of this week’s key inflation gauge and a trio of Treasury auctions. The dollar halted a three-day gain. The crypto world got hit. Gold rose to a record.

Several Fed officials are set to speak at public events, including Chair Jerome Powell on Tuesday. In his first policy speech since joining the Fed, Governor Stephen Miran laid out his argument for aggressively lowering interest rates.

Meantime, Fed Bank of St. Louis President Alberto Musalem noted he sees limited room for cuts amid elevated inflation. His Cleveland counterpart Beth Hammack said officials should be cautious to avoid overheating the economy.

Investor focus is likely to shift to the Fed’s tolerance of sticky inflation in 2026, and away from worries about a weaker labor market, according to Morgan Stanley’s Michael Wilson.

“Should the administration’s intention to ‘run it hot’ play out next year while the Fed cuts rates, revenue and earnings growth could come in much stronger than expected,” he wrote.

Goldman Sachs Group Inc.’s chief US equity strategist, David Kostin, boosted his three-month price target for the S&P 500 to 6,800 on Friday. He also lifted six- and 12-month estimates to 7,000 and 7,200, respectively. The gauge traded near 6,700 on Monday.

“During the past 40 years, the S&P 500 has generated a 15% median 12-month return when the Fed resumed cutting rates against a backdrop of continued economic growth,” he noted.

Stocks have been bucking the historical September weakness so far, thanks to an extremely favorable setup with Fed rate cuts, strong earnings, solid economic growth and muted inflation, according to Rick Gardner at RGA Investments.

“The stock-market’s strength is making it tougher to put new money to work, as valuations are rising, which makes it all the more important for investors to be selective and bottoms up,” he said.

History shows that rallies similar to the one the market has seen this year are difficult to derail.

Since 1950, the S&P 500 has advanced by roughly 5.5% on average in the final four months of the year when it has notched at least 20 records by late August, as it did this year, according to Sam Stovall at CFRA Research.

Those gains could come with a few bumps in the road, Stovall said. Still, “while another retreat in stocks may be looming, traders haven’t expended all of the market’s fuel yet,” he said.

Pockets of exuberance are appearing as equity positioning in the US keeps climbing, Deutsche Bank’s Parag Thatte said. Yet it isn’t close to extremes that would suggest lopsided risks of reversal, he added.

“Of course, there are reasons to be mindful, given the current high valuations compared to long-term averages,” said Mark Haefele at UBS Global Wealth Management. “After such a strong recent run, a period of consolidation should not come as a surprise, in our view.”

Still, his base case calls for the S&P 500 to reach 6,800 by June 2026. And in a bull case, he sees the index hitting 7,500.

There was no sign of seasonal weakness in the first three weeks of September, but with the Fed’s rate cut in the rearview mirror, the market will be searching for fresh sources of momentum, according to Chris Larkin at E*Trade from Morgan Stanley.

“In the short term, if economic data comes in soft, it may need to be in a ‘Goldilocks’ zone — soft enough for the Fed to continue cutting, but not weak enough to fuel recession concerns — for the market to avoid excessive volatility bumps,” he said.

The Fed’s preferred gauge of underlying inflation likely grew at a slower pace last month, offering policymakers some breathing room to address weakness in the US labor market.

A report on Friday is forecast to show the personal consumption expenditures price index excluding food and energy rose 0.2% in August, compared with 0.3% in July. On an annual basis, the so-called core measure is seen holding at a still-elevated 2.9%.

“August PCE is likely to show gradual tariff passthrough into goods prices and moderating services inflation,” said Oscar Munoz at TD Securities. “Personal income and spending likely moderated.”

Corporate Highlights:

Oracle Corp. would provide security and help oversee the re-creation of a new US version of TikTok’s algorithm under a deal taking shape to sell the popular Chinese-owned app to a consortium of American investors, a White House official said. Oracle promoted two executives, Clay Magouyrk and Mike Sicilia, to the joint role of chief executive officer. Safra Catz, who has led the company since 2014, will become the executive vice chair of the board. Walt Disney Co. said Jimmy Kimmel Live! will return to the air on Tuesday, ending a suspension imposed following controversial remarks its ABC late-night host made about the assassination of Republican activist Charlie Kirk. ASML Holding NV’s recent rally got a fresh boost on Monday as Morgan Stanley joined the ranks of the stock’s bulls, signaling that the chip-equipment maker may at last show a major uplift from artificial intelligence demand. Pfizer Inc. will pay $4.9 billion for the obesity startup Metsera Inc. in a bid to catch up to rival drugmakers after failing to compete with its own weight-loss medications. CVS Health Corp. subsidiary Omnicare Inc. has filed for bankruptcy after the pharmacy-services provider was ordered to pay $949 million over claims it improperly dispensed prescription drugs to individuals in long-term care. T-Mobile US Inc. is promoting Chief Operating Officer Srini Gopalan, to the top job, teeing up a new era for the US’s second-largest wireless carrier as it competes for customers in a market that now also spans home internet and satellite service. Walmart Inc. will start delivering refrigerated prescriptions to homes as the world’s largest retailer looks to expand the reach of its pharmacy and deliveries. Exxon Mobil Corp. plans to move forward with its seventh oil project in Guyana after receiving required regulatory approvals, according to a statement. MetLife Inc. expects third-period income from its private equity and real estate investments to meet its quarterly target for the first time this year, according to a filing Monday. Keurig Dr Pepper Inc. sank after the owner of Canada Dry and Snapple brands was hit with its only sell rating from BNP Paribas Exane. Compass Inc. agreed to buy Anywhere Real Estate Inc. in a deal that would create a combined company with a roughly $10 billion enterprise value, cementing Compass’s status as the largest residential brokerage in the US. ODP Corp., owner of the Office Depot retail chain, is being acquired by private equity firm Atlas Holdings for about $1 billion. Newly-formed Strive Inc. agreed to acquire Semler Scientific Inc. in a deal that combines two publicly-traded Bitcoin treasury companies. Porsche AG scaled back its electric-vehicle plans, correcting an expensive strategy that’s depressed its margins and is dragging down parent Volkswagen AG. Roche Holding AG’s experimental drug giredestrant helped patients with a form of advanced breast cancer live longer without the disease worsening in an advanced trial. BBVA SA raised the value of its takeover bid for Banco Sabadell SA by about 10%, a last-ditch effort to get a deal over the line that’s been delayed by regulatory reviews and government opposition for more than a year. Samsung Electronics Co. jumped after reports it’s won approval from Nvidia Corp. for the use of advanced memory chips, which marks a breakthrough for the Korean technology leader. BYD Co. fell after a report that Warren Buffett’s investment firm offloaded its stake in the Chinese electric-vehicle maker. What Bloomberg Strategists say…

“The balance of risks heading into a big week filled with Federal Reserve speakers tilts toward pricing for additional interest-rate cuts — a scenario that will put a floor under stocks.”

—Kristine Aquino, Managing Editor, Markets Live. For the full analysis, click here.

Some of the main moves in markets:

Stocks

The S&P 500 rose 0.4% as of 4 p.m. New York time The Nasdaq 100 rose 0.5% The Dow Jones Industrial Average rose 0.1% The MSCI World Index rose 0.4% Bloomberg Magnificent 7 Total Return Index rose 0.8% The Russell 2000 Index rose 0.6% Nvidia rose 3.9% Currencies

The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.5% to $1.1799 The British pound rose 0.3% to $1.3516 The Japanese yen rose 0.1% to 147.74 per dollar Cryptocurrencies

Bitcoin fell 2.8% to $112,198.11 Ether fell 7.6% to $4,137.7 Bonds

The yield on 10-year Treasuries advanced two basis points to 4.15% Germany’s 10-year yield was little changed at 2.75% Britain’s 10-year yield was little changed at 4.71% The yield on 2-year Treasuries advanced three basis points to 3.60% The yield on 30-year Treasuries advanced two basis points to 4.77% Commodities