Stock Market Today: Dow, Nasdaq, and S&P 500 Hit Record,Nvidia Reaches $5T and Meta Stock Rises

Wall Street Extends Record Run as Investors Brace for Fed Rate Cut

The U.S. stock market charged higher on Wednesday, with the Dow Jones Industrial Average (DJIA) climbing 0.52% to 47,953, the S&P 500 (SPX) gaining 0.20% to 6,904, and the Nasdaq Composite (COMP) advancing 0.52% to 23,951, each marking fresh all-time highs. The Russell 2000 rose 0.62%, signaling broad participation beyond mega-cap tech. Volatility cooled as the VIX slipped to 16.64, while Treasury yields steadied with the 10-year note (BX:TMUBMUSD10Y) anchored at 4.00%. Markets are fully pricing in a 25-basis-point rate cut, the second consecutive reduction by the Federal Reserve, as futures data imply a 97.8% probability of easing today and an 85% chance of another cut in December. Historically, when the Fed cuts rates while the S&P 500 is at record levels, the benchmark tends to post an average 20% gain over the following year, highlighting investor confidence that the easing cycle could extend the bull run.

Nvidia (NASDAQ:NVDA) Becomes the First Company to Hit $5 Trillion Market Cap

The market’s defining moment came as Nvidia Corp. (NASDAQ:NVDA) surged 3.8% to $208.67, officially crossing the $5 trillion valuation threshold—a milestone unmatched in corporate history. Nvidia’s dominance now towers over the entire semiconductor sector, exceeding the combined market capitalizations of AMD (NASDAQ:AMD), Intel (NASDAQ:INTC), ASML (NASDAQ:ASML), Broadcom (NASDAQ:AVGO), Micron (NASDAQ:MU), and TSMC (NYSE:TSM). The company’s value now surpasses the total of all energy, materials, and real estate stocks in the S&P 500 combined. CEO Jensen Huang fueled the rally with announcements of strategic alliances with Uber (NYSE:UBER), Nokia (NYSE:NOK), and the U.S. Department of Energy to develop seven AI supercomputers at Argonne and Los Alamos labs. These deals underscore Nvidia’s deepening grip on AI infrastructure, as its chips remain critical to the expanding ecosystem of machine learning and data centers. With shares already up more than 50% year-to-date, Nvidia’s ascent cements its position as the cornerstone of the AI economy and the undisputed leader of the Magnificent Seven.

Caterpillar (NYSE:CAT) Ignites Dow Rally With Massive Earnings Beat

Caterpillar Inc. (NYSE:CAT) delivered a powerful jolt to the Dow after smashing third-quarter expectations. The stock soared 13.4% to $594.84, its strongest one-day performance since 2008, following earnings per share of $4.95—well above the $4.59 consensus—on $17.64 billion in revenue, also topping forecasts. Caterpillar’s outlook for 2025 was revised higher amid surging demand for heavy equipment across construction, mining, and energy projects. The rally added more than 230 points to the Dow Jones, pushing the index within striking distance of 48,000, marking the fastest 1,000-point rise in its history. The company’s bullish commentary on infrastructure spending and global industrial growth has strengthened its standing as one of the Dow’s key cyclical engines.

Tech Earnings Take Center Stage With Microsoft, Alphabet, and Meta Reporting

Attention has now turned toward the Big Tech earnings cluster, which will define the next market leg. Alphabet (NASDAQ:GOOGL) gained 1.2% to $270.63, while Microsoft (NASDAQ:MSFT) slipped 0.9% to $537.13, both ahead of results expected to show resilient cloud revenue and AI-driven margins. Meta Platforms (NASDAQ:META) traded slightly lower, down 0.38%, while Apple (NASDAQ:AAPL) briefly reclaimed the $4 trillion market cap level as strong iPhone 17 sales drove renewed investor enthusiasm. Amazon (NASDAQ:AMZN) rose 0.7% to $230.89 after confirming plans to cut 14,000 corporate jobs to rein in costs amid soaring AI investments. Analysts remain divided on whether AI-related spending will compress margins or continue to fuel record revenue growth across the sector. With more than one-third of S&P 500 companies reporting this week, these results will dictate whether markets sustain momentum beyond the Fed-driven rally.

Corporate Winners and Laggards Define a Split Market Narrative

Beyond the tech surge, corporate earnings revealed sharp contrasts. Fiserv (NYSE:FI) collapsed 40.7% to $74.83, marking its worst trading day ever after missing Q3 expectations with $2.04 EPS versus $2.64 anticipated and slashing its full-year outlook. Etsy (NASDAQ:ETSY) dropped 7.6% to $69.13 following CEO Josh Silverman’s resignation announcement, handing control to Kruti Patel Goyal effective January 2026. On the positive side, PayPal (NASDAQ:PYPL) held ground after an earlier 14% surge, supported by its new OpenAI payment integration, which will allow purchases directly through ChatGPT. UPS (NYSE:UPS) soared 14% on revenue guidance exceeding forecasts, while Wayfair (NYSE:W) exploded 20% higher after reporting $0.70 EPS versus $0.44 expected, citing strong order momentum. The dispersion between outperformers and underperformers underscores the widening gap between firms executing on AI and logistics tailwinds and those struggling with guidance resets or leadership transitions.

Federal Reserve’s Policy Decision Looms Over Record Market Levels

As all major indices sit at record highs, the spotlight now shifts to Fed Chair Jerome Powell. The central bank is widely expected to reduce rates by 25 basis points, setting the new target range at 3.75%–4.00%, while traders focus on whether Powell’s tone will be dovish enough to signal a December follow-up cut. The 1-Month Treasury yield dropped to 3.92%, its lowest in over a year, reinforcing expectations for sustained monetary easing. However, several strategists warn that despite favorable liquidity, valuations—especially in high-growth tech—are stretched, leaving little margin for policy missteps. The Fed’s decision could influence whether equities continue their parabolic climb or consolidate near current levels. With the S&P 500 already up more than 4% since the last Fed meeting, the stakes are high for Powell’s guidance to balance confidence without fueling excessive speculation.

Trump’s Trade Diplomacy With Asia Adds a Geopolitical Catalyst

While the Fed dominates headlines, global diplomacy has also captured Wall Street’s attention. Speaking from Seoul, President Donald Trump announced progress on a $350 billion U.S.–South Korea investment pact and is set to meet China’s President Xi Jinping in a bid to finalize a broader trade framework. The thawing of U.S.-China relations has bolstered semiconductor stocks, with Nvidia (NASDAQ:NVDA), AMD (NASDAQ:AMD), and Qualcomm (NASDAQ:QCOM) gaining as investors anticipate relaxed export controls. Commodities also rallied, with Copper touching record highs in London amid supply disruptions, while Gold (XAU/USD) gained 0.9% to $4,019.80 as the U.S. Dollar Index (95.96, −0.05%) eased modestly. WTI Crude Oil (CL=F) traded at $60.84, up 1.15%, reflecting improving risk sentiment following the renewed diplomatic tone.

Sector Rotation and Technical Momentum Signal Persistent Bullish Bias

Market breadth has improved significantly, led by Technology and Industrials, with Financials lagging due to Fiserv’s collapse. The KBW Nasdaq Bank Index (BKX) ticked up 0.23%, while the S&P GSCI Commodity Index gained 0.88%, aided by metals and energy strength. From a technical standpoint, the S&P 500 remains strongly bullish above 6,850 support, with a potential breakout target at 7,000, while the Nasdaq Composite eyes resistance at 24,000. RSI levels indicate markets are approaching overbought territory, though institutional buying remains intact. Historical momentum suggests that as long as yields stay contained and earnings deliver, the bull cycle could persist into Q4.

Market Outlook and Strategic Positioning

Investor sentiment remains decisively optimistic heading into the final stretch of the year. Liquidity from global central banks, AI-driven productivity growth, and improving trade diplomacy continue to underpin the rally. TradingNews.com’s outlook remains BUY on Nvidia (NASDAQ:NVDA) and Caterpillar (NYSE:CAT) given their earnings power and sector leadership, HOLD on Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) pending earnings results, and SELL on Fiserv (NYSE:FI) until management restores confidence. With the Dow nearing 48,000, the S&P 500 targeting 7,000, and the Nasdaq hovering around 24,000, the market’s momentum is being tested but remains intact—driven by data, earnings strength, and the belief that the Fed’s soft-landing strategy is still within reach.

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