Q3's Mixed Bag: Tech, AI, and Cryptocurrencies Take Center Stage

The third quarter of this year saw mixed returns on Wall Street, with the S&P 500 gaining about 5.3%, the Nasdaq-100 delivering around 5% gains, and the Dow Jones losing about 0.1%. The Russell 2000 small-cap index fell by 5.7%

The quarter was marked by a strong focus on AI and tech, as well as a revival in cryptocurrencies. Inflation worries and rising Treasury bond yields were also notable features of Q3.

As inflation concerns grew, the Fed enacted a 25-basis-point rate hike in September to contain accelerating price growth. With the economy near full employment, Fed Chair Warsh stated that the central bank could address inflation without weakening economic growth or the labor market.