AI-stock rally powers Nasdaq to record close

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An AI-stock rally powered the Nasdaq to a record close Monday, as investors looked to Big Tech’s third-quarter earnings this month.
SpaceX, Nvidia, Meta, and Microsoft all gained, suggesting a kind of “inverse bond trade,” an investor told CNBC: “It’s buy tech, sell everything else.”
Demand for compute is strong enough that hyperscalers remain undeterred by higher borrowing costs, a dilemma for the US Federal Reserve: The AI investment boom is adding to inflation even as interest rates begin to bite elsewhere, suggesting the Fed may have to “hurt the part of the economy that is more rate sensitive,” Barclays’ global chairman of research told The New York Times.

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