Nasdaq 100 and S&P500: Tech Stocks Rally on Nvidia Surge, Fed Minutes in Focus Today

Strategists like Baird’s Ross Mayfield acknowledged the enthusiasm but warned tech remains vulnerable to sharp corrections. He likened the current cycle to the late 1990s, saying investors could see multiple pullbacks before a potential long-term peak forms.

Is the U.S. Government Shutdown Still a Contained Risk?

The shutdown entered its eighth day, and while equities have shown resilience, risks are growing. The Senate failed again to pass a stopgap funding bill. President Trump signaled not all furloughed workers may receive back pay, and military payroll delays could emerge if the stalemate continues. So far, markets appear focused elsewhere, but a prolonged impasse may dent consumer sentiment and disrupt spending cycles.

What Are Central Banks Signaling About Market Risks?

Both the Federal Reserve and Bank of England issued cautious tones. Traders are awaiting the Fed’s September meeting minutes, which could clarify the internal split on interest rate policy and inflation expectations.

The BoE, in its financial stability report, warned of “stretched” valuations in AI-heavy tech names, adding that markets may be underpricing broader risks—ranging from geopolitical tensions to elevated sovereign debt.

The BoE noted increased index concentration could leave equities especially vulnerable if AI expectations are scaled back, mirroring some investor concerns in U.S. markets.

Which Sectors Are Leading, and Where’s the Rotation Happening?

Technology and utilities led Wednesday’s gains, with both sectors on track to close at record highs. Investors are betting on long-term AI demand, particularly as data center power needs expand. The tech sector rose 1.05%, while utilities gained 0.65%.