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Wall Street’s AI fascination drives market gains, with Nvidia and Microsoft leading tech sector growth. Apple and Microsoft briefly hit $4 trillion market caps, reflecting AI confidence. Nvidia invests in Nokia’s AI infrastructure, while Microsoft’s stake in OpenAI positions it for future AI profits. OpenAI’s restructuring balances innovation with ethical concerns. Investors anticipate significant gains, viewing AI as a revolutionary technology. The Fed is expected to cut rates and debate future policy amid limited economic data.

AI stocks are surging, driving major indices to intraday highs. Nvidia and Microsoft led gains, pushing their market caps over $4 trillion. Investment in AI development intensifies, with Nvidia investing in Nokia and Microsoft holding a stake in OpenAI. The Fed is expected to cut interest rates, weighing economic conditions and future policy adjustments. Investors have high expectations for AI’s potential but analysts urge caution about current valuations.

Key market takeaways include renewed U.S.-China trade war tensions impacting market volatility, evidenced by intraday swings in the Dow. Despite these concerns, Treasury Secretary Bessent signaled the U.S. will maintain pressure on China. A federal judge blocked planned workforce reductions during the government shutdown. Apple unveiled new MacBook Pro, iPad Pro, and Vision Pro models, while Anthropic launched Claude Haiku 4.5. Finally, established automakers express EV concerns related to demand and profitability, as Tesla prepares to release its quarterly earnings report.