S&P 500 sets first record since August as AI money rotates into optics and power

The index closed up 0.58% at 7,818.93 while Constellation jumped 12% on a Google power deal and Seagate fell 9% on takeover chatter.

Deepakshi Sharma

Kristal Research

7 Oct2 min

Key takeaways — AI summary

The S&P 500 closed at a record 7,818.93, up 0.58%, its first record since August 13 and first finish above 7,800; the Nasdaq rose 0.45% to 27,599.79, also a record, while the small-cap Russell 2000 fell 0.59%.
Power led the market: Google signed a 3,590-megawatt deal with Constellation Energy (+12.3%), lifting utilities 3.01% as the best of 11 sectors; Constellation will spend over $4.3 billion upgrading 11 reactors.
A reshuffle split the AI trade — optical and power stocks surged (Ciena +13.9%) after Marvell lifted long-term targets, while storage and memory fell, with Seagate down about 9% on a Bloomberg report it and Toshiba are competing for TDK's hard-drive head business.
The 10-year Treasury yield eased 0.04 points to 5.27% a day after its highest close since 2002, as bonds rallied globally; WTI crude settled flat at $89.44 before climbing toward $90 in Asian trade on fresh Houthi attacks on Saudi Arabia.
The US trade deficit widened to $105.6 billion in August versus $102 billion expected, the widest since early 2025; traders still price about a 20% chance of another Fed rate hike on October 28.

Generated by Kristal AI · reviewed by the research desk

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