AI Rally Drives S&P, Nasdaq Gains

U.S. stocks finished October with solid gains, the S&P 500 rising about 2.3% for its sixth straight monthly advance while the Nasdaq outperformed with roughly a 4.7% gain, powered largely by an AI-led rally in big tech led by Nvidia and Amazon. Heavy tech earnings and disclosed increases in capital spending for AI infrastructure have reinforced investor confidence, and valuations have climbed toward levels not seen since the late 1990s. Sentiment has also been buoyed by easing U.S.–China trade tensions and fresh trade-deal details that lifted futures and risk-on positioning, with spillover noted into some crypto assets. Offsetting the optimism are rising macro and political risks — the Fed has said a December rate cut is not guaranteed, a U.S. government shutdown remains unresolved, and commodity and energy developments are adding pressure. Technical indicators such as firmer gold and the VIX suggest the rally may be approaching late-cycle resistance and could be vulnerable to a notable pullback despite seasonally favorable historical trends for November.