Stocks Surge to Record Highs Amid AI Optimism and Fed Rate Cut Expectations

U.S. equity markets reached unprecedented levels on October 28, fueled by a combination of bullish AI developments and corporate restructuring announcements. The S&P 500 breached 6,900 intraday before settling at a record close of 6,890.88, while the Nasdaq and Dow Jones Industrial Average similarly notched all-time highs.

Tech giants Apple and Microsoft achieved a historic milestone, each surpassing $4 trillion in market capitalization for the first time. Nvidia led market gains following a series of AI partnership announcements, continuing its dominance alongside Apple and Microsoft as the world's most valuable public companies.

Investors positioned ahead of an anticipated 25 basis point rate cut from the Federal Reserve, with particular enthusiasm surrounding artificial intelligence initiatives. The market's resilience underscores growing confidence in tech sector leadership despite recent workforce reductions at major firms like Amazon and UPS.