The bulls continue to run on Wall Street as U.S. equity markets again hit all-time highs on Oct. 28.
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The benchmark S&P 500 index hit a fresh record as investors rallied around a slew of artificial intelligence (AI) news, as well as job cut announcements from leading companies such as Amazon (AMZN) and United Parcel Service (UPS).
Investors also bid up stocks a day before the U.S. Federal Reserve is expected to deliver another 25 basis point interest rate cut. The S&P 500 briefly surpassed the 6,900 level for the first time on an intraday basis before closing at 6,890.88, an all-time high. The Nasdaq advanced 0.80%, and the Dow Jones Industrial Average gained 0.34%. The Nasdaq and Dow each hit all-time intraday highs alongside the S&P 500.
Notably, the market capitalizations of both Apple (AAPL) and Microsoft (MSFT) surpassed $4 trillion for the first time on Oct. 28. Apple and Microsoft join Nvidia (NVDA) as the three biggest publicly traded companies in the world, and the only ones to cross the $4 trillion market cap threshold.
AI News
The market’s gains on the day were led by Nvidia, whose stock climbed to a new all-time high on a series of AI-related announcements, including a new partnership with telecommunications company Nokia (NOK). Nvidia is taking a $1 billion stake in Nokia, which said it will use the proceeds from that investment to fund its own AI plans.
Also on Oct. 28, privately held OpenAI announced that it has completed its recapitalization, a move that sets up Microsoft for a windfall from its 27% holding in the for-profit arm of OpenAI. Additionally, markets liked news that Amazon is laying off 14,000 corporate workers and UPS is eliminating 48,000 positions, sending both stocks higher.
Is the SPDR S&P 500 ETF Trust a Buy?
The SPDR S&P 500 ETF Trust (SPY) currently has a Moderate Buy rating among 504 Wall Street analysts. That rating is based on 414 Buy, 84 Hold, and six Sell recommendations issued in the last three months. The average SPY price target of $749.51 implies 9.29% upside from current levels.
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