US stocks hold near record highs: S&P 500 and Nasdaq edge up; focus shifts to Fed rate cut hopes

Stock markets in the US displayed minimal movement near their peak levels during the early trading session on Wall Street on Tuesday. The S&P 500 edged up 0.1%, following its recent record high and seven consecutive days of gains. The Dow Jones Industrial Average advanced 90 points, while the Nasdaq composite increased by 0.1%. Overseas markets and bond trading showed similarly subdued activity.The price of gold continued its remarkable performance, surpassing $4,000 per ounce, driven by concerns over political uncertainties and potential future inflation risks.The focus is now on federal reserve rate cuts hopes, a shift from the economic concerns around government shutdown since October 1.US bond markets and stock indexes saw modest movements as investors paused following a recent surge in asset prices. Traders remain hopeful that the economy will stay resilient and that the Federal Reserve will continue cutting interest rates, supporting ongoing bullish sentiment.The US government shutdown has delayed key economic reports, including last week’s jobs update, leaving markets to rely on corporate developments. Meanwhile, Constellation Brands climbed 5.6% after beating quarterly expectations, though beer sales fell amid a “challenging socioeconomic environment,” according to CEO Bill Newlands. IBM rose 3% after integrating Anthropic’s Claude AI chatbot into select software products, while Advanced Micro Devices (AMD) surged 6.6% as its chips power OpenAI’s AI infrastructure, highlighting the ongoing AI-driven rally despite concerns over stretched valuations.Meanwhile, Intercontinental Exchange (ICE), operator of the New York Stock Exchange, gained 0.8% after announcing an investment of up to $2 billion in Polymarket, a platform that lets users profit from predictions on politics, markets, and global events.