Stock market today: Nasdaq closes above 23,000 for first time as tech rebounds

Published 08/10/2025, 11:22
Updated 08/10/2025, 21:04
© Reuters

Investing.com-- The Nasdaq closed above 23,000 for the first time on Wednesday, driven by a rebound in tech as Nvidia chief executive Jensen Huang talk up AI-led chip demand and the Federal Reserve’s latest meeting pointing to further rate cuts ahead.

At 4:00 p.m. ET (20:00 GMT), the benchmark S&P 500 rose 0.6% to hit a record close of 6,754.83. The tech-heavy Nasdaq Composite 1.1% to end above 23,000 for the first time ever, while the blue-chip Dow Jones Industrial Average 0.01%.

With a prolonged shutdown leading to the delay of several key economic indicators from the U.S. government, traders have had to turn to alternative data sources to check in on the health of the American economy. These measures dented sentiment in the previous session, especially a New York Federal Reserve survey displaying a deterioration in future expectations and rising projections for inflation.

FOMC minutes point to further cuts ahead, but inflation still a concern

Most Federal Reserve policymakers suggested that further rate cuts would appropriate, driven by a softening labor market, though uncertainty about how low rates should ultimately fall and ongoing inflation concerns muddying the consensus on deep rate cuts, according to the minutes of the Federal Reserve’s 16-17 Sept. meeting released Wednesday. 

The path to deeper cuts is paved with uncertainty amid differing views on where the neutral rate and lingering concerns about inflation running above target Some ultra dovish voting Fed members such as Federal Reserve Governor Stephen Miran, who backed a 50 bps cut last month, believe the Fed has ample room for deep cuts.

"A majority of participants emphasized upside risks to their outlooks for inflation, pointing to inflation readings moving further from 2 percent, continued uncertainty about the effects of tariffs...," the minutes showed.

Following the minutes, bets on an October cut where unchanged around 97%, according to Investing.com’s Fed rate monitor tool. 

Nvidia climbs on fresh AI-led optimism 

NVIDIA Corporation (NASDAQ:NVDA) climbed after CEO Jensen Huang stoked optimism on demand, telling CNBC in an interview that in the last six months "demand of computing has gone up substantially.” 

Huang also express excitement about investing in more money into Elon Musk’s artificial intelligence startup, xAI. 

The remarks arrived after Bloomberg News reported that the AI-darling is being tapped by Elon Musk’s xAI to help lift the startup’s current funding round to $20 billion.

Gold rises above $4,000 an ounce

Against such an unclear backdrop, gold prices have soared above $4,000 per ounce for the first time, as market participants like private investors and central banks seek the relative safety of the yellow metal.

Bullion has surged by over 50% so far this year, posting a series of fresh all-time peaks along the way. It is now on track to jump to its best year since 1979.

Analysts have noted that the U.S. government shutdown, combined with a weakening of other perceived havens such as the dollar and U.S. government bonds due to anticipated Fed interest rate cuts and concerns over America’s fiscal profile, have burnished gold.

The Japanese yen, another traditional haven, took a knock as well following the election of a new dovish leader of the ruling Liberal Democratic Party. 

Meanwhile, many exchange-traded funds have been expanding their holdings of gold as anticipation of Fed rate reductions intensifies, analysts at ING said in a note. Some central banks are buying the precious metal as well, with the People’s Bank of China in particular extending its gold buying streak in September for an eleventh straight month despite record high prices.

(Scott Kanowsky contributed to this report.)

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