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Tech stocks surge as Nasdaq hits record high, Dow and S&P 500 also make gains – Live updates

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“Tech giants dominate the stock market today as investors eagerly track the battle for the trillion-dollar crown between Apple and Microsoft, while also keeping an eye on emerging trends in renewable energy stocks.”

Stocks gained Wednesday ahead of the Federal Reserve’s latest policy decision on interest rates after closing out a terrible month. The Dow Jones Industrial Average advanced 105 points, or 0.3%. The S&P 500 climbed 0.5%, and the Nasdaq Composite added 0.7%.

Information technology stocks outperformed, gaining more than 1%. Semiconductor companies Advanced Micro Devices and Micron Technology added 6% and 4%, respectively. Nvidia shares were higher by 2%.

The Treasury detailed plans of the size of its future bond sales amid growing concerns of the U.S. government’s rising debt load. Next week, the Treasury will auction $112 billion in debt, largely matching what Wall Street was expecting.

Other economic data that came out Wednesday morning showed signs of cooling in the economy and labor market. The ISM manufacturing index showed manufacturing activity contracted more than expected in October. The Job Openings and Labor Turnover Survey showed that vacancies rose slightly in September. Private sector payrolls in October came in weaker than expected, the ADP said Wednesday.

The 10-year Treasury yield dropped to about the 4.8% level, boosting equities.

“The Treasury announced its refunding plans, and there was more issuance on the short end than the long end and that further caused rates to further rally,” said Jay Hatfield, chief executive officer at Infrastructure Capital Management.

“So, the bond market’s still driving the equity markets,” Hatfield said.

Traders turned their eyes to Washington for the Fed’s latest policy announcement. Central bankers are largely expected to keep rates steady. Fed funds futures pricing suggests a more than 99% probability that rates will remain at current levels, according to the CME FedWatch Tool.

The decision is slated for release at 2 p.m. ET, followed by a news conference with Chair Jerome Powell at 2:30 p.m. ET.

Wall Street is coming off a dismal October. The Dow and the S&P 500 ended the month lower by 1.4% and 2.2%, respectively, marking the first three-month losing streak for both indexes since March 2020. Notably, the S&P 500 temporarily fell into correction territory. The Nasdaq Composite dropped 2.8% in October, also falling for a third straight month.

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