{"id":37549,"date":"2025-10-31T20:02:13","date_gmt":"2025-10-31T20:02:13","guid":{"rendered":"https:\/\/financialrush.com\/?p=37549"},"modified":"2025-10-31T20:02:13","modified_gmt":"2025-10-31T20:02:13","slug":"us-stocks-ride-ai-hype-and-trade-truce-to-6-month-winning-streak","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=37549","title":{"rendered":"US stocks ride AI hype and trade truce to 6-month winning streak"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Stay informed with free updates<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Simply sign up to the <!-- -->US equities<!-- --> myFT Digest &#8212; delivered directly to your inbox.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=b78abb32-223a-45b2-a999-133e4273aa52&amp;concept-id=971c884d-f8fa-45c8-af59-bee0d7f28284\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>US stocks have hit their longest monthly winning streak in four years as artificial intelligence hype, declining interest rates and Donald Trump\u2019s move to dial back his trade war cheered investors.<\/p>\n<p>The S&amp;P 500 rose 2.4 per cent in October for a sixth consecutive month of gains, after notching its 36th all-time high this year on Tuesday. It marks the best run for the index since August 2021.<\/p>\n<p>The tech-heavy Nasdaq Composite\u2019s seven straight months of positive returns, following a 4.8 per cent gain in October, is its longest since early 2018.<\/p>\n<p><a href=\"https:\/\/www.ft.com\/us-equities\" data-trackable=\"link\">US equities<\/a> have rebounded from a sell-off in April sparked by Donald Trump\u2019s tariff announcements, driven higher by a mix of strong corporate earnings and investor excitement surrounding the AI investment boom. <\/p>\n<p>\u201cThere was some trepidation about AI and its impact on the stock market at the start of the week, but that\u2019s now totally given way to pure bullishness,\u201d said Jim Bianco,\u00a0president of Bianco Research, a consultancy.<\/p>\n<p>Concerns about an <a href=\"https:\/\/www.ft.com\/artificial-intelligence\" data-trackable=\"link\">AI<\/a> bubble in the making, and signs of weakness in the US labour market, were overshadowed by a torrent of bullish spending announcements and strong earnings from Silicon Valley tech groups.<\/p>\n<p>The prospect of a one-year deal between <a href=\"https:\/\/www.ft.com\/content\/ceb9d271-09b4-4066-87a7-1e93b6908640?syn-25a6b1a6=1\" data-trackable=\"link\">China and the US<\/a> to postpone export controls on rare earths and chips fanned investors\u2019 optimism.<\/p>\n<p>The Federal Reserve also delivered its second rate cut of the year on Wednesday. Jay Powell\u2019s assertion that a December reduction was \u201cfar from\u201d a foregone conclusion only briefly rattled investors\u2019 confidence. <\/p>\n<p>The rate cut followed an explosion of mergers and acquisitions across corporate America, with more than <a href=\"https:\/\/www.ft.com\/content\/2ab682c1-178b-4417-9add-b3337b2a702c\" data-trackable=\"link\">$80bn worth of deals<\/a> struck on Monday alone.<\/p>\n<p>\u201cThere\u2019s a greater consensus that the impact of AI is going to be real and transformational, earnings season is turning out well, we are at the beginning of a Fed rate cutting cycle, and there\u2019s optimism that there could be a reasonable [US trade] deal with China,\u201d said Venu Krishna, head of US equities strategy at Barclays.\u00a0<\/p>\n<p>Tech giants Alphabet, Amazon, Meta and Google this week reported a combined $112bn of capital expenditure in the past quarter, as they pour money into AI infrastructure such as chips and data centres.<\/p>\n<figure id=\"rpncgmsw\" class=\"n-content-image n-content-image--full\" data-component=\"image-set\"><picture><source media=\"(min-width: 700px)\" srcset=\"https:\/\/images.ft.com\/v3\/image\/raw\/ftcms%3A4f3b539e-4051-43a3-9bf6-51729373d7ba?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=1 1x,https:\/\/images.ft.com\/v3\/image\/raw\/ftcms%3A4f3b539e-4051-43a3-9bf6-51729373d7ba?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=2 2x,https:\/\/images.ft.com\/v3\/image\/raw\/ftcms%3A4f3b539e-4051-43a3-9bf6-51729373d7ba?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=3 3x,https:\/\/images.ft.com\/v3\/image\/raw\/ftcms%3A4f3b539e-4051-43a3-9bf6-51729373d7ba?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=4 4x,https:\/\/images.ft.com\/v3\/image\/raw\/ftcms%3A4f3b539e-4051-43a3-9bf6-51729373d7ba?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=5 5x\" width=\"3500\" height=\"2500\"\/><source media=\"(max-width: 490px)\" srcset=\"https:\/\/images.ft.com\/v3\/image\/raw\/ftcms%3A97c73ac9-cc17-4e4c-9a99-75b401c8d8b7?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=1 1x,https:\/\/images.ft.com\/v3\/image\/raw\/ftcms%3A97c73ac9-cc17-4e4c-9a99-75b401c8d8b7?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=2 2x,https:\/\/images.ft.com\/v3\/image\/raw\/ftcms%3A97c73ac9-cc17-4e4c-9a99-75b401c8d8b7?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=3 3x\" width=\"1500\" height=\"2000\"\/><\/picture><\/figure>\n<p>Amazon\u2019s shares rose as much as 12 per cent on Friday, adding almost $300bn to its market value after the company\u2019s cloud business reported its strongest quarterly growth in nearly three years<\/p>\n<p>Meta earlier in the week sold $30bn of bonds to finance AI projects. Despite its shares falling sharply on concerns about overspending, the bond sale drew about $125bn of orders \u2014 the <a href=\"https:\/\/www.ft.com\/editor\/82f63f23-db20-4f6c-84f1-e7b45ca09f46\" data-trackable=\"link\">largest-ever demand in dollar terms<\/a> for a US investment-grade corporate bond.<\/p>\n<aside aria-labelledby=\"aside-label\" class=\"n-content-recommended--single-story n-content-recommended--inset\" data-component=\"recommended\">\n<p class=\"n-content-recommended__title o3-type-body-highlight\">Recommended<\/p>\n<div class=\"o-teaser o-teaser--article o-teaser--small o-teaser--stacked o-teaser--has-image js-teaser\" data-id=\"ae4d7961-cf59-4369-8e64-8a9c9da956d1\">\n<div class=\"o-teaser__image-container js-teaser-image-container\"><a href=\"https:\/\/www.ft.com\/content\/ae4d7961-cf59-4369-8e64-8a9c9da956d1\" data-trackable=\"image-link\" data-trackable-context-story-link=\"image-link\" tabindex=\"-1\" aria-hidden=\"true\"><\/p>\n<div class=\"o-teaser__image-placeholder\" style=\"aspect-ratio:2048\/1152\"><img decoding=\"async\" class=\"o-teaser__image\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fimages.ft.com%2Fv3%2Fimage%2Fraw%2Fhttps%253A%252F%252Fd1e00ek4ebabms.cloudfront.net%252Fproduction%252Fef246440-3c83-46cd-9eef-73847e285827.jpg%3Fsource%3Dnext-article%26fit%3Dscale-down%26quality%3Dhighest%26width%3D700%26dpr%3D1?source=next&amp;fit=scale-down&amp;dpr=2&amp;width=240\" alt=\"Picture of a trader surrounded by the logos of Amazon, Meta, Nvidia and Microsoft\"\/><\/div>\n<p><\/a><\/div>\n<\/div>\n<\/aside>\n<p>Nvidia on Wednesday became the first company to reach a <a href=\"https:\/\/www.ft.com\/content\/62933c70-261c-4b7a-a045-3f9f9cceccd7\" data-trackable=\"link\">$5tn market capitalisation<\/a> a day after Apple topped <a href=\"https:\/\/www.ft.com\/content\/cac347b9-279f-4652-9b42-4f01f3b8f040\" data-trackable=\"link\">$4tn for the first time<\/a>.<\/p>\n<p>\u201cYes, this is a bull market that\u2019s run a long way\u2009.\u2009.\u2009.\u2009but at the moment the tech firms just keep on delivering,\u201d said John Bilton, head of global multi asset strategy at JPMorgan Asset Management. \u201cThe fact everyone is telling me [tech] is a bubble makes me think it\u2019s got further to go.\u201d<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/b78abb32-223a-45b2-a999-133e4273aa52\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Stay informed with free updates Simply sign up to the US equities myFT Digest &#8212; delivered directly to&hellip;\n","protected":false},"author":7,"featured_media":37550,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-37549","post","type-post","status-publish","format-standard","has-post-thumbnail","category-tech","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/37549","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37549"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/37549\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/37550"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}