Wall Street advanced on Tuesday, with the S&P 500 and the Nasdaq Composite both reaching new all-time highs. Lower Treasury yields lifted appetite for risk, technology shares led the advance, and improving consumer confidence and strong retail sales added to the positive tone. Asian markets slipped on Wednesday while oil prices extended their gains, with Brent above $100 a barrel, ahead of a relatively light US calendar that ends with the release of the Federal Reserve’s meeting minutes.
S&P 500 and Nasdaq hit fresh records
Tuesday’s session combined strong technology leadership with a supportive move in bond markets. Below, we look at how the main indices performed, what drove the fall in yields and which companies stood out.
Technology and AI stocks lead the gains
The S&P 500 climbed 0.7% to 7,826.5 and the Nasdaq Composite advanced 0.6% to 27,639.2, while the Dow Jones Industrial Average gained 0.5% to 51,541.9. Technology was the main driver. Marvell Technology, GE Vernova and Dell Technologies were among the best performers, and nine of the ten strongest mega cap stocks on the day came from the technology sector.
Market sentiment was also supported by improving consumer confidence and strong retail sales, although the wider US trade deficit highlighted the continued strength of imports and the scale of investment in capital goods.
Bond yields fall ahead of the Fed minutes
Yields declined across the Treasury curve as investors looked ahead to the Federal Reserve’s meeting minutes. The 10-year yield eased to 5.27%, the two-year yield dropped to 4.80% and the 30-year yield slipped to 5.65%.
Notable corporate movers
Corporate developments also reinforced the strength of the technology and AI related investment theme. Constellation Energy jumped 15% after agreeing a 20-year arrangement with Alphabet to provide 890 megawatts of nuclear power to the PJM grid, a deal that highlights growing electricity demand from data centres. Seagate Technology moved the other way, falling 9% on reports of competition to buy TDK’s magnetic head business.
Overall, the session reflected continued strength in US equities, particularly AI and technology names. High bond yields, geopolitical tension and developments in energy markets remain key risks for investors.
Global markets
Asian markets traded lower on Wednesday and US futures were broadly unchanged. European shares rose. The sections below cover Asian trading, US futures, European shares, currencies and oil.
Asian markets trade lower
Japan’s Nikkei 225 fell almost 1%, South Korea’s KOSPI lost 1.2% and Hong Kong’s Hang Seng dropped 0.8%. Australia’s ASX 200 was little changed, as was Singapore. Mainland Chinese markets stayed shut for the National Day holiday and are due to reopen on Thursday.
US futures hold steady
US stock futures barely moved overnight. S&P 500 futures were up 0.1%, while Nasdaq 100 and Dow futures were flat. No major market moving news emerged after the close, although AI related names stayed in the spotlight, with Constellation Energy’s 12% gain following its Google power deal remaining a notable corporate highlight.
European shares rise as yields ease
European equities gained 0.5%, helped by banks, consumer discretionary stocks and carmakers as falling sovereign yields eased worries about euro area debt. BNP Paribas rose 2.5%, UniCredit, Santander and Deutsche Bank each gained 1.5%, and Intesa Sanpaolo added 1.3%. Schneider Electric fell 4.5% after announcing a $22.6bn deal to buy PTC.
Dollar steadies as the euro holds firm
The US dollar stabilised around 102 following its recent softness, as traders waited for the Fed minutes and digested a less hawkish policy outlook. Fiscal worries, volatile bond markets and higher oil prices continued to weigh on sentiment. EUR/USD stood at 1.1238, reflecting continued euro strength against the dollar.
Oil climbs on supply concerns
Oil prices added to their gains on Wednesday. Brent rose 0.8% to $101.36 a barrel and WTI gained 0.9% to $90.25. Fresh Houthi attacks deepened concern about supply from the Middle East, possible production outages in the Gulf of Mexico added further support, and a 2.1 million barrel fall in US inventories also helped prices.
Economic and geopolitical developments
Trade data and geopolitics both featured prominently. Here are the key developments.
US trade deficit widens on AI related imports
The US trade gap widened sharply in August as imports of semiconductors and industrial machinery tied to AI infrastructure surged. Imports grew 4.3% while exports rose only slightly. Economists expect net trade to be a significant drag on third quarter GDP, with annualised growth potentially slowing to around 2.5%.
US position on Iran and contact with Russia
US Vice President JD Vance said Washington would require Iran to cut its uranium enrichment capacity as a condition for ending the seven month conflict, and President Trump rejected Tehran’s most recent proposal. Separately, Trump plans to speak with Russian President Vladimir Putin after a worker at a Russian anti plague laboratory died of pneumonia of undetermined origin.
Equities on the move
Several companies saw their shares move on analyst ratings, earnings updates or other news. We have grouped them by theme.
AI infrastructure and data centres
SpaceX is reported to be looking to raise $40 billion, led by Apollo Global, to fund purchases of Nvidia chips for its AI infrastructure. The package would consist of roughly $10 billion in bank loans and $30 billion in investment grade debt, a reminder of the enormous capital requirements behind data centres and the continued expansion of AI computing capacity.
Marvell Technology shares rallied after management set out an ambitious long term growth plan. The company sees a total addressable market of $400bn by 2030 and is targeting revenue of $20bn in FY2028, rising to between $70bn and $90bn by FY2031. Strong investment in AI data centres is expected to drive demand for its custom compute and networking chips.
Constellation Energy and Google signed a 20-year agreement to add 890MW of nuclear capacity to the PJM grid, backed by more than $4.3bn of investment. A further 2,700MW is covered by a 15-year agreement. The deal addresses rising AI driven power demand and strengthens Constellation’s long term nuclear growth outlook.
Applied Digital secured up to 1GW of potential power capacity in Finland, marking its first international expansion, which could become an AI data centre campus from 2028. The expansion widens its addressable market at a time when power and data centre capacity are scarce globally, although spending will depend on tenant commitments and regulatory approvals.
US electricity demand is forecast to hit record levels in 2026 and 2027, driven by AI data centres, cryptocurrency mining, electrification and higher residential and commercial use. Consumption is projected at 4,288bn kWh in 2026 and 4,356bn kWh in 2027. Renewables are expected to account for 27% of generation by 2027, although natural gas will remain the largest source.
Software, consumer and digital platforms
Zscaler reaffirmed its fiscal 2027 guidance, with revenue of $3.91bn to $3.94bn and adjusted EPS of $4.86 to $4.90, both broadly in line with market expectations. First quarter guidance was also unchanged. The update came at the company’s Investor Day, where management discussed platform innovation, go to market priorities and long term growth drivers.
Uber agreed to buy US corporate catering platform ezCater for $2.3bn in cash, adding to its fastest growing delivery business. ezCater, which generates more than $2.5bn in gross bookings, brings higher value corporate orders to Uber Eats and Uber for Business. The deal is expected to support margins and sharpen Uber’s competitive position against DoorDash.
ASOS shares fell sharply after customers received a message claiming that hackers had breached the company’s Snowflake data environment and were threatening to leak information. ASOS has not confirmed whether any customer data was accessed. Its website and app remained operational, and cybersecurity experts said they had not previously come across the group behind the alleged attack.
Citi estimates that Meta’s AI assistant Muse could bring in more than $27bn of annual revenue by 2030 through transaction fees and subscriptions. With 6.6 million downloads and 1.8 million daily users, Muse is becoming a central part of Meta’s AI strategy, and Citi believes being early to market could reinforce its position as personal agents grow into a major consumer platform.
Analyst rating changes
Citi raised its price target on AMD to $800, pointing to improving prospects for CPUs as agentic AI lifts demand for computing power. The broker increased its 2030 CPU total addressable market estimate to $300bn from $237bn and expects AMD to benefit most. CEO Lisa Su also said AMD intends to increase chip supply significantly in 2027.
Nike shares declined after Berenberg cut the stock to Sell, citing tougher competition, weak sportswear and Jordan sales, and persistent difficulties in China. The broker expects revenue to fall through fiscal 2029 and lowered its 2027 EPS estimate to $1.08. It also questioned Nike’s valuation and the delayed benefits of its Pace restructuring.
J.P. Morgan downgraded Schneider Electric to neutral, arguing that the PTC and Cognite acquisitions tilt the group towards its less attractive Industrial Automation division. It reduced its 2027 price target to €310, while noting that the recent fall in the share price had gone too far. Schneider expects €800m of revenue synergies and €250m of annual cost savings from the PTC deal.
Bank of America downgraded BE Semiconductor Industries to neutral, pointing to slower adoption of high bandwidth memory and possible competition from ASML. It cut its price target to €212 and warned that softer HBM demand could reduce equipment shipments in 2027 and 2028. BofA also expects flip chip revenue to slow cyclically after a long period of growth.
Banking and energy outlook
JPMorgan CEO Jamie Dimon warned that advanced AI has sharply raised cybersecurity risk, making cyberattacks the biggest threat the bank faces. He also cautioned about rising government debt and excessive borrowing and called for reforms to support growth. Despite slower investment banking activity, Dimon remains positive about the long term potential of technology.
The EIA lifted its Brent forecast to $98 a barrel for 2026 and $84 for 2027, citing falling global inventories, tight diesel supply and continued disruption from the Iran war. It expects Brent to average $105 in the fourth quarter of 2026 before easing as Middle East flows recover. US oil production is projected to reach a record 14.3 million barrels per day in 2027, even as demand stays subdued.
What to watch today
The US calendar is relatively light. MBA mortgage data and used car prices are due early in the session. Oil markets will watch the EIA inventory report, particularly crude and distillate stocks. Consumer inflation expectations and the 10-year Treasury auction come later, followed by the FOMC minutes, which will offer insight into the Fed’s policy outlook.
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