CNBC Daily Open: AI rally defies bond market rout
AI stocks propel the S&P 500 to a fresh record high, but the bond market blues keep investors on edge.
TL;DR
- S&P 500 reached a fresh record high, closing above 7,800, largely driven by tech stocks like Advanced Micro Devices and Marvell Technology.
- Temasek and Arthur Hayes caution about risks in the AI trade, with Hayes suggesting trillions are being 'wasted' and historical patterns indicating potential crashes.
- Investors await the minutes from the Federal Reserve's September meeting, with market expectations for interest rate hikes in October and December.
- The Reserve Bank of India raised interest rates for the first time since 2023 due to rising inflation.
- Oil prices increased amid attacks by Yemen's Iran-backed Houthis on Saudi Arabian oil infrastructure and increased tensions in the Strait of Hormuz.
- British Airways is planning to install a record 106-seat business class cabin on its Airbus A380 jets, removing coach seats to cater to high-spending travelers.