Insights

Last week was marked by the re-opening of the U.S. government after a prolonged shutdown. However, despite a significant boost to the stock market at the beginning of the week, the positive momentum waned as the week progressed as investors were concerned about high valuation of AI stocks and uncertainty over Federal Reserve policy.

The multi-week bull run ended last week, halted by a notable selloff of tech stocks. The NASDAQ experienced a sharp correction, driven by concerns of overpricing and high valuations, particularly in the technology sector.

Stocks moved generally higher last week, largely driven by solid corporate earnings from some big tech firms. The S&P 500 and the NASDAQ each reached record highs during the week, extending a significant rally.

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The major stock market indexes continued to climb last week, with the S&P 500 and the NASDAQ reaching new record highs. Investors were buoyed by a strong start to the third-quarter earnings season, particularly for major banks, with most companies reporting better-than-expected earnings and profits.

Last week saw another period of volatility in the stock market, largely driven by U.S.-China trade tensions, the ongoing government shutdown, and concerns over the health of the banking sector. Despite market swings throughout the week, stocks ultimately pushed higher by week’s end, with each of the benchmark indexes listed here posting gains.

Enthusiasm over advancements in artificial intelligence has fueled a significant stock rally, but in our view, it is not a bubble—at least not yet. While AI has clearly captured investor attention, today’s market leaders are far more profitable and better capitalized than tech names during past bubbles. Speculation exists, but widespread skepticism and strong fundamentals—like earnings, margins, and cash flow—are helping anchor valuations.

Wall Street was marked by volatility throughout last week. Major indexes, particularly the S&P 500 and the NASDAQ, reached new record highs earlier in the week, driven by an advance in AI stocks and favorable corporate earnings reports.