US stocks end higher as AI rally lifts Nasdaq ahead of Fed decision

US stock markets concluded the trading session with gains as investors rotated back into technology and artificial intelligence-related equities. According to reports, chipmakers led the advance, benefiting from renewed optimism surrounding AI developments. The announcement regarding Anthropic's initial public offering provided additional relief to the sector, which had faced persistent concerns about the sustainability of AI-related spending and valuations. The broader market sentiment improved as traders weighed these positive catalysts against macroeconomic headwinds.

The Federal Reserve initiated its policy meeting during the session, with expectations indicating the central bank would maintain interest rates at current levels. This backdrop of steady monetary policy combined with AI-driven enthusiasm created a supportive environment for equities, particularly growth-oriented technology stocks that compose a significant portion of the Nasdaq index. Corporate earnings season continued to generate mixed results, with nearly half of S&P 500 constituents having reported quarterly results. Many companies exceeded Wall Street estimates, though several major firms posted declines that reflected sector-specific or company-specific challenges. This mixed earnings backdrop, combined with the AI rally and Fed policy expectations, created volatility across different market segments. Traders appeared to favor growth narratives supported by artificial intelligence developments while remaining cautious about elevated valuations and interest rate sensitive sectors. The market's reaction underscored investor focus on technology leadership and central bank policy direction as key drivers of near-term equity performance.

Source: Markets-Economic Times