S&P 500’s Record-Breaking Run Gets Fresh AI Fuel: Markets Wrap
(Bloomberg) — The record-setting stock rally got its latest injection of momentum from powerhouses Dell Technologies Inc. and International Business Machines Corp. amid optimism over artificial intelligence. Bonds wavered ahead of a slew of Federal Reserve speakers.
Equities extended their winning run, with the S&P 500 up for an eighth consecutive session – the longest such streak since May. Dell climbed 5% after roughly doubling its growth estimates for sales and profit for the next two years on strong AI demand. IBM’s move to integrate Anthropic’s AI technologies into its software solutions drove the shares up 2%.
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Optimism over AI keeps propelling the stock market to new highs, eclipsing concerns such as the US government shutdown. The Nasdaq 100 has already closed at a record 30 times this year through Monday, according to data compiled by Bloomberg.
A surefire investing rule has always been “don’t fight the Fed.” The same seems true of the powerful AI trade in stocks, according to Goldman Sachs Group Inc. macro trader Bobby Molavi.
“It’s hard to fight the capex for now and survive if you’re early or wrong,” he said. “Whatever AI ends up being and when it ends up being, the momentum and trajectory for now is clear.”
The moves come amid some chatter about a bubble forming around AI as the key players pledge billions of dollars in deals with a cohort of companies making infrastructure for the technology. As more money is spent, there’s mounting fear that the trend will end in a crash the way it did 25 years ago following the dot-com euphoria.
“Profit-taking risks have rapidly risen across markets, and are particularly elevated for Nasdaq, potentially hampering further upside,” according to Citi’s Chris Montagu.
Corporate Highlights:
Dell Technologies Inc. roughly doubled its growth estimates for sales and profit for the next two years, and said demand for artificial intelligence products will extend those higher projections at least through the 2030 fiscal year. International Business Machines Corp. announced a plan to integrate Anthropic’s artificial-intelligence technologies into its software solutions. Tesla Inc. plans to unveil a cheaper version of the Model Y on Tuesday, according to people familiar with the matter, following through on assurances it will have a more affordable vehicle to counter the loss of US incentives for electric vehicles. Constellation Brands Inc., the owner of the Corona and Modelo Especial brands in the US, reported better-than-expected results for its fiscal second quarter, citing robust beer and wine sales. Ford Motor Co. faces months of disruptions to its business after a major fire at an aluminum plant in New York, the Wall Street Journal reported. Ethiopian Airlines has more than 100 planes on order with Boeing Co., but delivery delays are hampering expansion at Africa’s biggest carrier. Intercontinental Exchange Inc., owner of the New York Stock Exchange, plans to invest as much as $2 billion in cash in Polymarket, a crypto-based betting platform. Bank of New York Mellon Corp. is exploring tokenized deposits to enable clients to make payments using blockchain, as major banks across the world step up use of the technology underpinning digital assets to transfer funds. Rising investor appetite for digital infrastructure, energy and transportation assets boosted fundraising for Manulife Investment Management, which closed its largest-ever infrastructure fund with $5.5 billion. Mercedes-Benz Group AG’s third-quarter car deliveries slumped 27% in China, where luxury spending remains muted and local manufacturers are dominating on electric vehicles. Zurich Insurance Group AG said it will reject BBVA SA’s bid for Banco Sabadell SA, raising the stakes in the takeover battle that’s set to end on Friday. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.2% as of 9:32 a.m. New York time The Nasdaq 100 rose 0.3% The Dow Jones Industrial Average rose 0.3% The Stoxx Europe 600 rose 0.1% The MSCI World Index was little changed Bloomberg Magnificent 7 Total Return Index fell 0.2% The Russell 2000 Index rose 0.2% Dell Technologies rose 4.8% IBM rose 2.3% Currencies
The Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.4% to $1.1667 The British pound fell 0.4% to $1.3426 The Japanese yen fell 0.3% to 150.81 per dollar Cryptocurrencies
Bitcoin fell 0.4% to $124,725.55 Ether rose 1.2% to $4,747.41 Bonds
The yield on 10-year Treasuries was little changed at 4.15% Germany’s 10-year yield was little changed at 2.72% Britain’s 10-year yield was little changed at 4.74% The yield on 2-year Treasuries was little changed at 3.59% The yield on 30-year Treasuries was little changed at 4.74% Commodities
West Texas Intermediate crude fell 0.3% to $61.52 a barrel Spot gold rose 0.4% to $3,977.89 an ounce ©2025 Bloomberg L.P.
