S&P500 Today: Nvidia, AMD Pop as AI Deal Sparks Tech Stock Rebound and Forecast Boost

S&P, Dow Rally as Bank Earnings Impress, Tech Rebounds on AI Buzz

Wall Street found its footing Wednesday, with the Dow jumping over 400 points as another round of strong bank earnings rolled in. Financials added fuel to a broader rally that also saw tech stocks catch a bid, thanks in part to AI-driven deal news and bullish sentiment around chipmakers. The S&P 500 and Nasdaq both advanced over 1%, as buyers stepped in following Tuesday’s politically fueled selloff.

Bank of America and Morgan Stanley were in the spotlight after posting quarterly results that beat expectations, joining Goldman Sachs and Wells Fargo in delivering upside surprises.

Morgan Stanley’s earnings beat was its biggest in five years, driven by surging stock trading revenue. Tech added a second tailwind, led by Nvidia, Intel, and AMD. A $40 billion deal by Blackstone to buy a major data-center operator also stirred up excitement around AI infrastructure.

Are Traders Buying the Bank Rally?

Yes — at least for now. Bank of America climbed 4.5% and Morgan Stanley popped 6% after both beat on the top and bottom line. Investment banking helped lift BofA, while Morgan Stanley’s stock trading desk crushed estimates.

Elsewhere, Citizens Financial and First Horizon rose 3% and 3.4%, respectively, on solid beats. Even as recession chatter lingers, credit quality looks stable and trading desks are printing. The financial sector rose 0.75% on the day.

That said, not every bank got love. PNC shed 2% despite strong numbers, and Synchrony Financial slipped 1% after trimming guidance. Traders are still picky — but they’re rewarding strength.

Is Tech Back in the Game?

It looks like it. The Nasdaq led indexes higher with a 1% gain, thanks to a strong move in semis. ASML jumped nearly 5% on a confident long-term outlook, while Nvidia and AMD bounced as AI enthusiasm returned. Intel followed suit. The sector’s 1.6% rise was the strongest of the day, narrowly beating out real estate and communication services.

The backdrop: Blackstone’s $40 billion data center bet sent a strong signal that institutional money is still chasing AI infrastructure. That’s got traders rethinking the recent tech softness tied to rate and trade jitters.

What About Trade and Political Risks?

They’re still in the mix. President Trump’s threat of a cooking oil embargo and new China sanctions kept geopolitical risks front of mind. Archer-Daniels-Midland and Bunge Global both rallied over 2% as agriculture traders positioned for disruptions. JPMorgan expects talks between Trump and Xi later this month to cool tensions — but nothing is guaranteed.

Meanwhile, Treasury Secretary Scott Bessent struck a calmer tone, noting progress with South Korea and Canada. Still, rate hikes, a government shutdown, and potential tariffs remain overhangs.

Is the Rally Built to Last?

Hard to say. Art Hogan at B. Riley sees the market grinding sideways near highs, with trade tensions and the government shutdown as headwinds. But that might underplay the bullish undercurrents.

JPMorgan expects the upcoming Oct 31–Nov 1 APEC summit to deliver a tariff truce between Trump and Xi, easing fears of an all-out embargo. That lowers the ceiling on trade risk — at least for now.

Add in upside earnings surprises and another major AI deal — Blackstone’s $40 billion data center buy — and you’ve got a setup that still favors the bulls. It’s not wide open, but if Washington avoids major missteps, the markets have room to run into year-end.

More Information in our Economic Calendar.