Stock Rally Loses Steam After AI-Fueled Euphoria: Markets Wrap

  • Debt-limit deal faces final test in Congress to avert default
  • Nvidia hovering near $1 trillion in value amid massive AI bet
Morgan Stanley: China's Overall Journey to Recovery Is on TrackSource: Bloomberg
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Stocks treaded water after a rally fueled by the artificial-intelligence hype drove the market to its highest since August. Treasury yields fell on hopes the US Congress will pass a debt deal to head off a default.

The S&P 500 closed little changed, while remaining slightly above 4,200. Energy companies weighed on the index as oil sank below $70 a barrel. The Nasdaq 100 extended this year’s surge to 31%, with Nvidia Corp. hovering near $1 trillion in value after announcing several AI-related products. A gauge of megacaps like Apple Inc. and Tesla Inc. climbed 1.5%.