Traders work, as a screen broadcasts a news conference by U.S. Federal Reserve Chair Jerome Powell following the Fed rate announcement, on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., Sept. 17, 2025.
Brendan McDermid | Reuters
Investors barely flinched Wednesday, despite the release of the Fed minutes and the ongoing U.S. government shutdown.
Discussions on rate cuts and shutdowns seemed to be mere background noise compared to the real force moving markets now, namely, artificial intelligence.
AI stocks such as Nvidia are now masters of the market narrative, driving record highs across the S&P 500 and Nasdaq.
On the flip side, Oracle became the proverbial straw that broke the S&P500’s seven-day winning streak Tuesday stateside.
But, to paraphrase Spider-Man, with great power, comes great scrutiny. The Bank of England warned that valuations appear “stretched,” particularly for AI companies, adding that equity markets could be particularly exposed should expectations around the impact of AI become less optimistic.
For now, Wall Street remains in hyperdrive, fueled by AI’s promise and the hope that the Fed will keep cutting rates.
Investors may soon need to reckon with whether this AI-fueled rally is built on solid ground or it’s swinging toward a cliff.
What you need to know today
Israel, Hamas reach ‘first phase’ plan. U.S. President Donald Trump said that both parties have “signed off” on the first phase of his peace plan. Under the plan, Trump said that all hostages will be released and Israel will withdraw forces to an “agreed upon line.”
HSBC to take Hang Seng Bank private. HSBC announced plans to take subsidiary Hang Seng Bank private, valuing the lender at more than 290 billion Hong Kong dollars (over $37 billion). Shares of Hang Seng Bank shares jumped 29.5% Thursday.
Nvidia CEO surprised at ‘clever’ AMD deal. CEO Jensen Huang said Wednesday that he’s surprised Advanced Micro Devices offered 10% of itself to OpenAI as part of a multibillion-dollar partnership announced earlier this week. “I’m surprised that they would give away 10% of the company before they even built it. And so anyhow, it’s clever, I guess,” he said.
S&P 500 and Nasdaq rebound to record. Both indexes notched new all-time intraday and closing highs Wednesday stateside. The broad index was powered by the information technology, utilities and industrial sectors. Markets were mixed in Asia. Shares of Softbank Group jumped 13% after it announced a $5.4 billion deal to buy the robotics division of Swiss engineering firm ABB.
[PRO] Best ways to gain gold exposure. As the bullion hits new highs, industry experts say there is still room for gold to to run, with one analyst saying that gold could reach $5,000 per ounce by 2026. Here are the best ways to gain exposure to the yellow metal.
And finally…
The late Shinzo Abe (L) and Sanae Takaichi (R) at a science and technology innovation conference in Tokyo on October 22, 2014.
Toshifumi Kitamura | Afp | Getty Images
Will Takaichi’s ‘Abenomics’ weaken the yen and raise the ire of Trump?
For years, U.S. President Donald Trump has accused Japan of engaging in “unfair trade practices” — a criticism that dates back to his days as a real estate mogul.
In March, Trump again singled out Japan, alleging that Tokyo weakened its currency to gain an unfair trade advantage.
Now, as Abe’s protégé, Sanae Takaichi, is poised to helm the world’s fourth-largest economy, the same concern could be rearing its ugly head again.
— Lim Hui Jie
