AI and crypto stocks lead market as traders weigh ceasefire stability, Fed signals
Stocks treaded water Wednesday, pausing after a two-day rally that pushed major indexes to within arm’s reach of their all-time highs. While investor sentiment has warmed on easing geopolitical tensions and resilient earnings, markets remain locked in a tug-of-war between long-term tech optimism and near-term policy uncertainty.
Indexes Seek Direction as Record Levels Loom
The S&P 500 edged down less than 0.1%, while the Dow Jones Industrial Average slipped 106.59 points, or 0.25%. The Nasdaq Composite added 0.31%, continuing its outperformance on the back of strength in artificial intelligence and semiconductor stocks.
| Index | Wednesday Close | % Change | Distance from Record |
| S&P 500 | ~6,090 | -0.1% | < 1% below record close (6,144.15) |
| Nasdaq Composite | ~18,100 | +0.31% | ~1.3% below record (Dec. 2024) |
| Dow Jones Industrial Avg | ~39,050 | -0.25% | ~4.5% below record |
The S&P 500 is up more than 2% this week, buoyed by a geopolitical ceasefire between Iran and Israel and cooling fears of a regional oil supply shock. President Donald Trump’s announcement of the truce reassured markets that the conflict would not derail the global economic recovery.
Fed Policy and Tariff Ambiguity Cloud Forecast
Federal Reserve Chair Jerome Powell reinforced a cautious tone in back-to-back congressional hearings this week, signaling that policymakers remain in “wait-and-see” mode amid murky data on how tariffs are affecting inflation.
> “The current tariff scenario is unprecedented,” Powell noted, highlighting the difficulty in modeling its potential inflationary effects. “We are not in a hurry to cut rates.”
The yield on the 10-year Treasury held steady at 4.29%. Meanwhile, new home sales for May fell to their slowest pace since October 2024, indicating potential cracks in consumer confidence as elevated borrowing costs linger.
Tech Titans and AI Standouts Propel Nasdaq
Artificial intelligence stocks were among the day’s brightest performers. Nvidia surged 4% to a record, reinforcing its leadership in AI computing. Alphabet gained 2%, while AMD climbed 3% after a two-day 9% advance. Server specialist Super Micro Computer rallied nearly 9%, rebounding sharply after recent volatility.
| Company | % Change | Highlights |
| Nvidia (NVDA) | +4.0% | Record high; strong AI momentum |
| Alphabet (GOOG) | +2.0% | Steady AI product growth |
| AMD | +3.0% | Building on 6% Tuesday surge |
| Super Micro (SMCI) | +8.9% | Continued rebound from earlier decline |
| Micron (MU) | -1.0% | Earnings awaited post-close |
Tesla fell more than 4% as EU sales data showed declines for a fifth straight month. Amazon and Meta each dipped 0.5%, while Apple and Microsoft posted marginal gains.
Crypto Stocks Rise as Bitcoin Rebounds Past $107K
Bitcoin rose back above $107,000, recouping its weekend losses, fueling fresh gains across crypto-linked stocks.
| Crypto Asset/Stock | Wednesday Price | % Change |
| Bitcoin (BTC) | $107,700 | +1.6% |
| Coinbase (COIN) | $248.10 (est.) | +2.0% |
| MicroStrategy (MSTR) | ~$1,560 | +2.5% |
Bernstein raised its price target for Coinbase, citing strong trading volumes and product diversification.
Commodities Recalibrate: Oil Stabilizes, Gold Firms
West Texas Intermediate crude rose 1.3% to $65.20 per barrel after sliding from $77 earlier in the week. Supply concerns tied to Middle East unrest have eased for now, though volatility remains likely if the fragile ceasefire falters.
Gold futures rose 0.4% to $3,345 an ounce after profit-taking on Tuesday. The metal hit $3,415 on Monday during peak geopolitical uncertainty.
Forward Outlook: Secular Strength vs. Cyclical Risks
As markets grapple with the intersection of technological tailwinds and policy-driven headwinds, investors continue to price in a high-stakes balancing act. Leah Bennett, chief investment strategist at Concurrent Asset Management, captured the broader mood:
> “There is a battle in the markets between secular tailwinds—like AI, robotics, crypto—and the cyclical headwinds of potential policy missteps. The former seems to be winning today.”
With inflation trends stable and labor data intact, a recession still appears unlikely. Yet the unresolved ripple effects of global tariffs and political crosscurrents keep Wall Street cautious even amid momentum toward historic highs.
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