Tech Stocks Propel Markets: Nasdaq and S&P 500 Surge on AI and Growth Optimism

The U.S. stock market extended gains on October 8, driven by robust performance in technology heavyweights and optimism surrounding AI demand. The S&P 500 climbed 0.58% (+39.13 points) to 6,753.72, while the Nasdaq Composite advanced 1.12% (+255.01 points) to 23,043.38. In contrast, the Dow Jones Industrial Average was flat, slipping 0.00% (-1.20 points) to 46,601.78, weighed down by its price-weighted composition and mixed performances in large-cap industrial and consumer stocks.

Fed Minutes Point to Rate Uncertainty and Support Investor Sentiment

Investor sentiment improved following the release of the Federal Reserve’s September FOMC meeting minutes. Policymakers displayed varied opinions on the timing and pace of future rate adjustments. Some Fed members advocated for cautious easing due to slowing economic growth and data gaps caused by the federal government shutdown.

While questions about the Fed's rate trajectory persist, reduced fears of aggressive tightening have lifted valuation prospects for growth stocks, particularly tech companies. Simultaneously, expectations of rising demand for AI computing power contributed to the strong performance of semiconductor and cloud-computing stocks.

Nasdaq and S&P 500 Boosted by Tech Giants and Semiconductor Momentum

The Nasdaq’s robust gains were fueled by tech sector leaders, including Nvidia (NVDA), which rose 2.20% to $189.11, Amazon (AMZN), advancing 1.55% to $225.22, and Netflix (NFLX), surging 1.95% to $1,214.25.

Similarly, the S&P 500 benefited from semiconductor strength, with Broadcom (AVGO) jumping 2.70% to $345.50 and Nvidia contributing further gains. Apple (AAPL) and Microsoft (MSFT) lent additional stability, rising 0.62% to $258.06 and 0.17% to $524.85, respectively.

In contrast, the Dow Jones index struggled due to its sensitivity to large-cap industrial and consumer stock movements. However, modest gains from Apple and Microsoft helped mitigate losses.

Sector Snapshot: AI, Cloud, EVs, and Streaming in Focus

Semiconductors and AI

Nvidia and Broadcom continued their upward trajectory, reflecting high investor confidence in the structural growth of AI-driven computational demand. Nvidia closed at $189.11, while Broadcom climbed to $345.50, underscoring the market’s bullish view on chipmakers.

Cloud and Platform Innovators

Cloud computing and platform stocks showed steady strength throughout the session. Amazon closed at $225.22, while Microsoft edged up to $524.85. Meta Platforms (META) rallied to $717.57, bolstered by expectations of strong upcoming earnings and the increasing adoption of AI tools. Apple gained 0.62%, ending at $258.06, amid optimism regarding its product cycle and services revenue expansion.

Electric Vehicles

Tesla (TSLA) climbed to $438.69, benefiting from growing enthusiasm for its pricing policies and advancements in robotics and autonomous driving technology. EV stocks contributed to positive sentiment in the broader tech sector.

Streaming and Entertainment

Netflix joined the rally of tech and platform giants, advancing to $1,214.25. The streaming company’s upward movement aligned with broader optimism in tech-heavy growth industries.

Mixed Results in Cryptocurrency-Linked Stocks

Digital asset-linked equities displayed varied performances amidst decreased cryptocurrency volatility and optimism over payment infrastructure innovation. Coinbase (COIN) rose 3.06% to $387.27, while MicroStrategy (MSTR), known for its Bitcoin holdings, gained 0.73%, closing at $330.80.

The mining sector saw divergent results, with Riot Platforms (RIOT) climbing 2.42% to $21.99 and Cipher Mining (CIFR) surging 11.75% to $17.60. Conversely, Marathon Digital (MARA) and Bitdeer (BTDR) fell slightly, closing at $20.20 (-0.25%) and $19.95 (-3.20%), respectively.

In the payment space, PayPal (PYPL) rose 2.04% to $76.13, while Block (formerly Square, ticker: XYZ) advanced 2.64% to $81.11, tapping into bullish fintech sentiment.

Key Drivers and Market Takeaways

Monday’s session underscored reduced fears of aggressive monetary tightening alongside optimism for growth sectors such as AI, cloud computing, and electric vehicles. The release of the FOMC meeting minutes reassured investors by highlighting the likelihood of a balanced approach to interest rate adjustments.

Though internal divisions within the Fed persist, investors are focusing on structurally high-growth industries, including semiconductors, cloud computing, and payment platforms, while monitoring macroeconomic data for signs of volatility. With AI demand driving a compelling narrative, the market shows sustained appetite for technology-driven growth stories.