US markets today: Stocks hover near record highs as investors await Fed decision; Nvidia, Caterpillar and Teradyne lead gains

Wall Street stocks climbed to new highs on Wednesday, driven by Nvidia’s record-breaking surge past a $5 trillion market value and optimism ahead of the US Federal Reserve’s closely watched interest rate announcement. The rally gained momentum as investors anticipated further signs of policy easing from the central bank.The S&P 500 advanced 0.3% to 6,913.88, the Dow Jones Industrial Average gained 0.5% to 47,964.20, and the tech-heavy Nasdaq Composite rose 0.6% to 23,976.84 about 35 minutes into trading. All three benchmarks had closed at record highs on Tuesday.Nvidia, which had become the first company to cross the $4 trillion mark in July, extended its historic run after unveiling new ventures built on its artificial intelligence technology during a company event on Tuesday. The chipmaker’s stock jumped 4.9%, propelling its market value beyond $5 trillion — a first in corporate history.“The market is expecting nothing but good and better news from these companies, leaving virtually no room for disappointment,” said Briefing.com analyst Patrick O’Hare, referring to upcoming earnings from Microsoft, Alphabet, and Meta Platforms later in the day.Hours later, the US Federal Reserve announced its second consecutive quarter-point interest rate cut of 2025, lowering its key lending rate to a range between 3.75% and 4.00%. The move was aimed at cushioning the economy against growing risks in the labour market.The decision, approved by a 10-2 vote, exposed divisions within the Federal Open Market Committee. Fed governor Stephen Miran voted for a larger half-point cut, while Kansas City Fed president Jeff Schmid preferred holding rates steady.“The press conference is going to be where the action happens,” said Art Hogan of B. Riley Wealth Management before the announcement. He noted that the government shutdown had disrupted key employment and economic data, complicating the central bank’s decision-making. “This is a Fed chair that will have to describe how the (Federal Reserve) gets to a decision on rates in the absence of government data, which is no easy task,” Hogan added.Bond yields remained largely stable, with the 10-year Treasury yield dipping to 3.98% from 3.99% late Tuesday, signalling investor caution ahead of the Fed’s statement. Traders are now watching for clues on whether policymakers will hint at another possible rate cut in December.Strong corporate earnings added to the market’s positive tone. Caterpillar shares surged 9.3% after the company reported better-than-expected quarterly profit and revenue, bolstered by robust demand for construction and mining equipment. CEO Joe Creed said the firm saw “resilient demand” despite a “dynamic environment.”CVS Health rose 3.1% after exceeding profit estimates, even as it reported losses linked to a slowdown in its new primary care business. CEO David Joyner said the company had “stabilized operations.”Teradyne jumped 19% after reporting strong quarterly results, with CEO Greg Smith noting that “AI-related test demand remains robust.” Mondelez International fell 3.3% despite solid earnings, as the Oreo-maker warned of continued pressure from record cocoa prices.Asian stocks ended broadly higher, buoyed by Wall Street’s rally and diplomatic developments in the region. Japan’s Nikkei 225 climbed 2.2% to a new record, while South Korea’s Kospi gained 1.8% after US President Donald Trump met with Seoul’s leader during his visit to Japan. Shanghai’s Composite Index rose 0.7% ahead of Trump’s meeting with Chinese President Xi Jinping amid ongoing trade tensions.European markets traded mixed as investors tracked global central bank moves and major earnings reports, reflecting a cautious but optimistic outlook for the months ahead.