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Wall Street looked past concerns about elevated valuations, with stocks hitting all-time highs as another Federal Reserve rate cut bolstered the outlook for corporate earnings and technology shares rallied. Bonds fell.Equities held gains after the widely anticipated Fed reduction, with officials also deciding to stop shrinking the central bank’s portfolio of assets on Dec. 1. Traders are now gearing up for Chair Jerome Powell’s press conference amid expectations he’ll offer little guidance as a growing divide among policymakers blurs the path ahead.Fed policymakers repeated their assessment that “job gains have slowed” and said “risks to employment rose in recent months.” Officials characterized economic growth as “moderate” and said inflation “has moved up since earlier this year and remains somewhat elevated.”“My base case remains that a 25 basis-point cut will be delivered at the December meeting, with the Fed’s ‘run it hot’ approach likely leading to further such cuts at the first couple of meetings next year as well,” said Michael Brown at Pepperstone.Brown also notes that the move back toward a more neutral rate and balance-sheet approach strengthens the “Fed put” structure, tilting the path of least resistance even further to the upside for risk assets.A renewed tech advance sent the S&P 500 up for a fifth straight day, putting the gauge on track for its longest streak of monthly gains since 2021. While there have been worries about narrowing breadth that could jeopardize the run-up in the near term, bets on artificial intelligence kept powering megacaps.Nvidia Corp. hit $5 trillion as President Donald Trump said he’ll discuss the Blackwell processors with China’s Xi Jinping. Updates on AI is what investors most want to see from tech giants, with Microsoft Corp., Alphabet Inc. and Meta Platforms Inc. reporting results after the closing bell.The S&P 500 topped 6,900. While tech led gains once again, about 300 shares fell. Nvidia climbed 3%. Microsoft said that some users are having issues accessing its suite of business applications and games.The yield on two-year Treasuries rose three basis points to 3.52%. The dollar wavered. Gold jumped.While the upward momentum in large-cap technology and growth continues, the diverging breadth and underperformance in small- and mid-cap stocks raise concerns about the sustainability of the recent stock market’s advance, according to Craig Johnson at Piper Sandler.In fact, the previous session was really quite unusual. Since 1990, the S&P 500 has never had an up day with weaker breadth than Tuesday, according to Bespoke Investment Group strategists.“When we look at this setup against overbought chart conditions which extend across multiple time frames, it continues to imply the potential for elevated volatility into year-end 2025,” said Dan Wantrobski at Janney Montgomery Scott.While Wantrobski is still looking for the S&P 500 to hit the 7,000 mark this year - with an intermediate-term target toward 7,400 - he notes that markets are still vulnerable to “air pockets, some of which could prove pretty nasty.”“November may be a target, despite its reputation as one of the best months for stocks,” he said.Technology’s weight in the S&P 500 has been trending higher since the 1970s, and the sector currently makes up a record share of the index, according to Rob Anderson at Ned Davis Research.Relative to the long-term trend, the move looks less extreme compared to 2000, he noted. However, the reading is still well into the top quintile of all observations, consistent with sector underperformance one, three, five, and 10-years later, on average.“It often pays to go against the crowd when sentiment reaches an extreme” and then reverses, which has not yet occurred, he said. “However, the reading suggests risk is elevated for the sector,” Anderson said.Despite lofty expectations embedded in the stock prices of the members of the “Magnificent Seven” megacaps, market resilience continues, noted Mark Hackett at Nationwide.“Broader earnings participation and margin strength should help deliver more balanced performance across sectors, reinforcing the case for diversification,” he said..Boeing Co. announced a $4.9 billion accounting charge and delayed debut for its 777X jetliner, a reminder of the long recovery ahead for the US planemaker even as rising aircraft deliveries bolster its cash.Boeing is laying plans to push production of its 787 Dreamliner to new heights, testing its ability to clear an inventory of parked planes and the strength of its strapped supply chain.Caterpillar Inc. posted stronger-than-expected earnings and revenue on the back of surging demand from AI data centers for its power-generation equipment.Kraft Heinz Co. lowered its sales outlook as its chief executive officer said that the feeling of US shoppers has fallen to historic a low.Verizon Communications Inc., the nation’s largest mobile-service provider, reported gains in revenue and profit in the third quarter as a new chief executive officer laid out an aggressive growth strategy to reclaim market share.CVS Health Corp. raised its 2025 profit guidance for a third time in less than six months, a sign that it’s set a new foundation a year into Chief Executive Officer David Joyner’s tenure following challenges in its insurance business.Fiserv Inc. plunged after the fintech slashed its outlook for full-year earnings and unveiled third-quarter results that confounded Wall Street analysts.Paramount Skydance Corp. began a planned round of job cuts involving 1,000 workers on Wednesday as part of an effort to slash $2 billion in costs following its August merger with Skydance Media. More cuts are expected at a later date.Centene Corp.’s third-quarter profit surpassed Wall Street expectations and the health insurer raised its outlook, a potential sign of relief for investors after the company’s profit view collapsed earlier this year.Caesars Entertainment Inc., a major operator of resort casinos, reported third-quarter results that fell short of Wall Street estimates.Edison International’s executives said the company’s equipment will likely be found to be associated with triggering the deadly Eaton Fire in Los Angeles.Uber Technologies Inc. is preparing to offer driverless rides on vehicles developed by Lucid Group Inc. and Nuro Inc. in the San Francisco Bay Area for the first time next year, thrusting the company into direct competition with Waymo’s robotaxi service.Thermo Fisher Scientific Inc. agreed to acquire Clario Holdings Inc., a privately held maker of drug trial software, for about $8.9 billion in cash.Online marketplace Etsy Inc. will elevate Chief Growth Officer Kruti Patel Goyal to the CEO job, entrusting the company veteran with navigating the artificial intelligence era and lifting the marketplace out of a post-pandemic slowdown.Airbus SE is keeping its ambitious jet delivery target, setting the company up for a furious production pace to close out the year, after reporting strong quarterly earnings on the back of the defense and space unit.UBS Group AG results failed to dispel investor anxiety about risks from previously canceled Credit Suisse bonds, the potential impact of Swiss capital reforms and the lender’s involvement in the First Brands bankruptcy, overshadowing a set of earnings that broadly beat expectations.Deutsche Bank AG exceeded analyst estimates for fixed-income trading, giving tailwind to Chief Executive Officer Christian Sewing just a couple of weeks before he presents a new strategy.Banco Santander SA posted third-quarter results that beat analysts’ estimates as profit jumped in the US and provisions for souring loans remained contained.GSK Plc raised its profit and sales forecasts for the year, aided by its HIV and immunology medicines, in Emma Walmsley’s last report as chief executive officer.Mercedes-Benz Group AG confirmed its annual outlook and plans to proceed with a €2 billion ($2.3 billion) share buyback after the company’s automaking margin climbed in the third quarter.SK Hynix Inc. reported a 62% jump in profit and revealed it’s sold its entire memory chip lineup for next year, illustrating how a global AI infrastructure buildout is ratcheting up sector-wide demand.Indonesia’s GoTo Group raised its earnings forecast for the year, a sign that new initiatives and cost cuts to cope with fierce competition in the ride-hailing and delivery market are paying off..Some of the main moves in markets:StocksThe S&P 500 rose 0.2% as of 2:07 p.m. New York timeThe Nasdaq 100 rose 0.3%The Dow Jones Industrial Average rose 0.3%The MSCI World Index was little changedBloomberg Magnificent 7 Total Return Index rose 0.7%The Russell 2000 Index rose 0.5%Nvidia rose 3%Microsoft fell 0.7%CurrenciesThe Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.1643The British pound fell 0.4% to $1.3218The Japanese yen fell 0.2% to 152.36 per dollarCryptocurrenciesBitcoin fell 1.2% to $111,509.19Ether rose 0.4% to $3,998.22BondsThe yield on 10-year Treasuries advanced four basis points to 4.01%Germany’s 10-year yield was little changed at 2.62%Britain’s 10-year yield was little changed at 4.39%The yield on 2-year Treasuries advanced three basis points to 3.52%The yield on 30-year Treasuries advanced four basis points to 4.58%CommoditiesWest Texas Intermediate crude rose 0.7% to $60.59 a barrelSpot gold rose 1% to $3,990.81 an ounce
