Nasdaq Jumps 1.25% as AI Stocks Rally Ahead of Fed, Big Tech Earnings
Updated
Updated · Reuters · Oct 27
Nasdaq Jumps 1.25% as AI Stocks Rally Ahead of Fed, Big Tech Earnings
3 articles · Updated · Reuters · Oct 27
Summary
The Nasdaq climbed 1.25% by late morning, outpacing a 0.68% S&P 500 gain and 0.12% Dow rise as investors kept buying AI-linked stocks before this week’s Fed decision and major tech earnings.
Chip shares rose 3.2% for a third straight day, Broadcom gained nearly 4% after financing for Anthropic AI chips, and Tesla added 3.8%, reinforcing the market’s AI-driven risk appetite.
Brent crude fell for a second session, helping sentiment even as markets still expect the Fed to hold rates steady Wednesday and price in at least two more hikes by mid-2027.
Boeing dropped 9.5% after saying its 737 production target will slip to early 2027, limiting Dow gains, while General Motors rose 6.3% on plans to move its listing to Nasdaq.
September capital-goods orders increased, suggesting the AI spending boom is still feeding through the broader economy as investors test whether heavy AI investment can justify rising costs and losses.