Dow Rises as Rate-Hike Bets Fade; AI Stocks Cap Gains

The Dow Jones Industrial Average opened higher on October 16, rising 278.03 points to 52,455.72 by 9:35 a.m., as fading expectations of a Federal Reserve rate hike supported the market. Fed Chair Warsh stated on October 16 that it was not appropriate to comment on future policy actions, leading rate futures to price a roughly 15% chance of an October rate hike, down from under 30% the prior day. Consumer and cyclical stocks gained on reduced uncertainty. However, gains were capped by persistent selling pressure on AI-related stocks, including CoreWeave, Micron, AMD, and Western Digital. JPMorgan, Goldman Sachs, Nike, and Coca-Cola rose, while UnitedHealth, Cisco, and Nvidia fell. The Nasdaq opened lower, though Tesla gained after unveiling its new Roadster.