Equities Close at Record as Alphabet Adds to AI Hopes – US Market Wrap

Equities closed at all-time highs as Alphabet’s results showed solid demand for AI, bolstering confidence in the tech that has powered the bull market. Signs of job strength ahead of next week’s Fed decision lifted Treasury yields.

The S&P 500 managed to make a gain and set its tenth record in 19 trading days after rising 28% from its April lows. Companies like Nvidia saw a surge that reached a new high thanks to Google’s parent company’s optimism about AI. Musk’s warning of tough times ahead caused Tesla to drop 8.2%. Late at late hours, Intel provided a positive sales prediction.

The S&P 500’s record-breaking run may be raising fears about bloated stock prices and a resurgence of meme-stock froth, but JPMorgan’s trading department is unconcerned. Rather, it expects the boom in US equities to continue.

Bonds fell for the second day, with 10-year yields rising three basis points to 4.41%. Traders reduced their bets on Fed cuts, predicting fewer than two reductions this year. The dollar edged higher. As European policymakers tempered expectations of policy easing, German bunds fell.

US unemployment claims declined for the sixth week in a row, marking the longest sequence of decreases since 2022. The characterisation of the labor market will be a prominent theme at next week’s Fed meeting.