US Stocks Climb on AI Optimism Amid Fed Rate Uncertainty
US stock markets closed higher on October 6, driven by investor optimism around artificial intelligence and technology stocks. The Dow Jones Industrial Average gained 0.64%, ending at 51,596.39, while the S&P 500 rose 0.61% to 7,821.50. The Nasdaq, heavily weighted with tech and AI-driven companies, increased by 0.58%, closing at 27,637.20.
Top performers included Caterpillar, which surged 2.58%, and Constellation Energy, which climbed 15.07%. Tech giants Microsoft and Nvidia also contributed to the gains, with Microsoft rising 1.35%. Investors remain cautious, however, as they monitor Federal Reserve policy, bond yields, oil prices, and geopolitical tensions.
Commodities showed mixed movements, with gold edging up 0.38% to $4,155.61, while crude oil fell 1.72% to $87.89. The US 10-year Treasury yield dipped slightly to 5.290%. The market’s upward momentum was supported by softer expectations for a Fed rate hike in October, with traders pricing in a 78% chance of rates remaining steady.
The Nasdaq’s record close underscored the strength of the AI-driven rally, with Nvidia and Microsoft leading the charge. Despite concerns over energy prices and interest rates, the S&P 500 remains near its all-time highs, reflecting bullish sentiment.