OpenAI CEO Sam Altman (left) shakes hands with Kevin Scott, Microsoft’s chief technology officer and vice president of artificial intelligence, during the Microsoft Build conference at the Seattle Convention Center Summit Building on May 21, 2024 in Seattle, Washington, USA.
Jason Redmond | AFP | Getty Images
Investors do not fully understand artificial intelligence, despite concerns that the field is overvalued.
of S&P500, Dow Jones Industrial Average and Nasdaq Composite Intrastate markets rose on Tuesday, with all three hitting new intraday highs. Major averages were boosted by advances in technology. Nvidia It rose by nearly 5%, but microsoft It rose by about 2%.
both apple And after the stock price rise, Microsoft has reached a market capitalization of more than $4 trillion. It was the first time Apple had reached this milestone, but it closed just short of that mark.
Technology companies also don’t have enough relationships with each other.
Nvidia announced a $1 trillion investment in Nokia, which the Finnish company said will be used to develop AI plans. For those who remember it as well as I do, nokia As the company that created the most desirable bulletproof phone, it now mainly manufactures mobile phone equipment.
Meanwhile, Microsoft owns a 27% stake in OpenAI’s commercial business and could potentially be sitting on a gold mine if AI can gain a foothold as a sustainable, revenue-generating business in the long term. OpenAI announced Tuesday that it has completed its reorganization as a nonprofit organization with a controlling stake in the for-profit sector.
Microsoft isn’t alone. As Ark Invest’s Cathie Wood says, investors who pour money into technology can reap big rewards. “If our expectations for AI are correct, we are at the very beginning of a technological revolution.”
What you need to know today
And finally…
Jerome Powell, Chairman of the Board of Governors of the Federal Reserve System, attends the Fall Meetings of the International Monetary Fund (IMF) and World Bank at IMF Headquarters in Washington, DC, USA, on Thursday, October 16, 2025.
Kent Nishimura | Bloomberg | Getty Images
In addition to cutting interest rates, the Fed has a number of other things planned this week. Here’s what you can expect
The market has a nearly 100% chance that the Federal Open Market Committee will approve a 25 basis point cut in the federal funds rate for the second consecutive quarter. The benchmark for overnight loans is currently targeted at 4%-4.25%.
In addition, policymakers are likely to discuss the path forward for cuts, the challenges posed by the lack of economic data, and the timeline for ending cuts to the Fed’s asset portfolio of Treasuries and mortgage-backed securities.
— Jeff Cox
