Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., on September 17, 2025, as Federal Reserve Chairman Jerome Powell’s press conference after the Fed’s interest rate announcement is shown on a screen.
Brendan McDiarmid | Reuters
Investors remained largely undaunted Wednesday despite the release of the Fed minutes and the continued U.S. government shutdown.
Discussions of rate cuts and closures seem to be mere background noise compared to the real force moving markets right now: artificial intelligence.
AI stocks like Nvidia now dominate the market narrative, driving record highs across the S&P 500 and Nasdaq.
Conversely, Oracle became the proverbial breaking the S&P 500’s seven-day winning streak on Tuesday US time.
But to paraphrase Spider-Man, with great power comes great scrutiny. The Bank of England warned that valuations, particularly for AI companies, appeared to be “stretching”, adding that stock markets could be particularly at risk if expectations about the impact of AI become less optimistic.
For now, Wall Street remains in hyperdrive, fueled by hopes for AI and expectations that the Fed will continue to cut interest rates.
Investors may soon need to consider whether this AI-powered bull market is built on solid foundations or teetering toward a cliff.
What you need to know today
Israel and Hamas reach “Phase 1” plan. US President Donald Trump said both parties had “signed off” on the first phase of the peace plan. Under the plan, President Trump said all hostages would be released and Israel would withdraw its troops to the “agreed line.”
HSBC to take Hang Seng Bank private. HSBC has announced plans to take its subsidiary Hang Seng Bank private, valuing the bank at more than HK$290 billion (more than $37 billion). Hang Seng Bank shares rose 29.5% on Thursday.
Nvidia CEO surprised by AMD’s ‘smart’ deal. CEO Jensen Huang said Wednesday that he was surprised that Advanced Micro Devices offered OpenAI 10% of its stock as part of a multibillion-dollar partnership announced earlier this week. “I was surprised that they would give away 10% of the company before forming it. Still, I think it’s a smart thing to do,” he said.
S&P 500 and Nasdaq regain records. Both indexes hit new highs during U.S. time and Wednesday’s close. The broad index was supported by the information technology, utilities and industrial sectors. Markets were mixed in Asia. SoftBank Group shares rose 13% after announcing a $5.4 billion deal to acquire the robotics division of Swiss engineering firm ABB.
(PRO) The best way to gain gold exposure. As bullion hits new highs, industry experts say gold still has room to rise, with one analyst saying gold could reach $5,000 an ounce by 2026. The best way to get yellow metal is as follows.
And finally…
The late Shinzo Abe (left) and Sanae Takaichi (right) attended the Science, Technology and Innovation Conference held in Tokyo on October 22, 2014.
Toshifumi Kitamura | AFP | Getty Images
Will Mr. Takaichi’s “Abenomics” lead to a weaker yen and incur the wrath of President Trump?
US President Donald Trump has long accused Japan of engaging in “unfair trade practices,” a criticism dating back to his days as a real estate mogul.
In March, President Trump again singled out Japan, claiming that Tokyo had devalued its currency to gain an unfair trade advantage.
Now, as Prime Minister Abe’s protégé, Sanae Takaichi, seeks to take the helm of the world’s fourth-largest economy, the same concerns may be rearing its ugly head again.
— Lim Huijie
