Wall Street Rally: AI Buzz, Rate-Cut Hopes Drive Record Highs Despite Shutdown Risks

• S&P 500 (SPX) jumped 1.1%, joined by the Dow (DJI) (+1.1%) and Nasdaq (IXIC) (+1.3%), all closing at record highs. The Russell 2000 (RUT) surged 1.7%.

• U.S. 10-year yield (US10Y) retreated to 4.12%, snapping a two-week climb.

Sector Moves:

• Healthcare (S5HLTH) led with a 6.8% weekly gain – its best since June 2022. Pfizer (PFE) rallied on a White House drug-pricing deal, boosting peers and life sciences firms. The Nasdaq Biotech Index (NBI) soared over 6% to a 4-year high.

• Utilities (S5UTIL) rose 2.4%. AES (AES) jumped after reports that BlackRock’s GIP is nearing a $38B power-sector takeover.

• Technology (S5INFT) advanced 2.2%. Western Digital (WDC) (+23% weekly) and Seagate (STX) hit all-time highs on AI-driven storage demand. Chipmakers climbed as Samsung (005930) and SK Hynix (000660) signed a supply deal with OpenAI’s Stargate project, lifting the Semiconductor Index (SOX) 4.4%.

• Fair Isaac (FICO) leapt 22% on the week after unveiling direct licensing for mortgage scores.

Laggards:

• Financials (SPF) dipped 0.3%; banks fell on shutdown fears. The S&P 500 Banks Index (.SPXBK) slid 3%, while KBW Regional Banks (KRX) lost 1%.

• Consumer Discretionary (S5COND) slipped 0.8%. Tesla (TSLA) reversed gains after record deliveries, pressured by EV tax credit expiry. Nike (NKE), however, jumped on surprise revenue and profit beats.

• Communication Services (S5TELS) fell 2.1%. Netflix (NFLX) slid for five sessions amid a Musk-led boycott call, while EA (EA) spiked on a $55B LBO by Silver Lake, Saudi Arabia’s PIF, and Jared Kushner’s Affinity Partners.

• Energy (SPN) sank 3.3% as oil dropped on oversupply concerns. Occidental (OXY) slipped after selling its chemical unit to Berkshire Hathaway (BRK.A) for $9.7B.

Commodities:

• Gold nears $4,000/oz, with bulls calling it a matter of “when, not if,” supported by rising investor optimism, per the latest AAII survey.