Gold Surges Past $4,000 as AI Optimism Boosts Markets to New Highs
Gold prices surged past $4,000, while renewed optimism in artificial intelligence has overshadowed concerns about a tech bubble. Meanwhile, markets remain calm despite headline risks, with the S&P 500 hitting fresh all-time highs.
Markets have been resilient, with the S&P 500 not experiencing a 1% move since August. The yield on 10-year Treasuries held steady at 4.13%, and the dollar reached its highest level since August. The S&P 500 surpassed 6,750, the Nasdaq 100 climbed 1.2%, and small caps added 1%.
Investors are betting on the bull market's longevity, driven by corporate resilience and the restart of Fed rate cuts. Mark Haefele at UBS Global Wealth Management believes the bull market remains intact, with today's tech giants' P/E ratios well below dotcom era peaks. Despite caution from Fed officials about inflation, investors anticipate two more quarter-point rate cuts this year and two more next year.
Fed officials have shown openness to lowering rates further this year but remain cautious due to inflation concerns. The next stock market meeting is scheduled for October 28–29, 2025, with the interest rate decision to be announced on October 29, 2025 at 8:00 PM.
Gold's surge to over $4,000 and renewed AI enthusiasm have boosted the stock market, with the S&P 500 hitting fresh highs. Despite Fed caution, investors remain bullish, anticipating further rate cuts. The next stock market meeting is set for late October 2025.
