Nvidia Shatters Records Amid AI Surge: Wall Street Awaits Federal Reserve Decision

U.S. stocks hit new heights as Nvidia surpassed a $5 trillion valuation, driven by a spike in AI demand. Investors anticipate a Federal Reserve rate cut and company earnings. While Nvidia led the rally, notable performances from Apple, Microsoft, and others also contributed to the optimism in the tech sector.

U.S. stocks soared to unprecedented levels on Wednesday, bolstered by Nvidia's milestone of becoming the first company to achieve a $5 trillion market valuation. This surge was attributed to a significant rise in orders for AI chips and ambitious plans unveiled by Nvidia CEO Jensen Huang.

The tech sector, led by Nvidia, has been a powerhouse this year, with Apple and Microsoft also reaching impressive valuations of over $4 trillion. The upcoming earnings from Meta, Microsoft, and Alphabet are crucial to sustaining the AI-driven momentum that has fueled the ongoing stock rally.

While the Federal Reserve's upcoming monetary policy decision is highly anticipated, the market largely expects a rate cut. Investors continue to watch for signals from the Fed as companies across various sectors report earnings, with firms like Caterpillar and Seagate showing pronounced gains, though challenges persist for others.

(With inputs from agencies.)