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US stocks edged higher on Wednesday as Nvidia clawed back some of its steep losses from the previous session, helping steady the broader market after renewed doubts about the sustainability of the AI trade. The S&P 500 rose 0.2%, the Nasdaq Composite gained 0.3%, and the Dow Jones Industrial Average advanced 102 points, or 0.2%.
Fed Chair Jerome Powell took the podium on Tuesday to gives his latest take on the economy. Included in his comments was referring to stocks as "fairly highly valued.

Peter Kraus, Aperture Investors chairman and CEO, joins 'Squawk Box' to discuss the state of the economy, the Fed's inflation fight, rate path outlook, Fed Chair Powell's comments on stock valuations, latest market trends, impact of AI boom, and more.
Artificial Intelligence isn't just changing the way we live and work, it's igniting an unprecedented boom in AI infrastructure investment all over the world. According to recent projections, AI infrastructure spending is estimated to reach up to $4 trillion by 2030.
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Global defense stocks advanced on Wednesday after US President Donald Trump, in a marked rhetorical shift, expressed support for Ukraine's ability to retake Russian-occupied territory. The comments, published overnight on Trump's Truth Social platform, fueled gains in European and Asian defense equities.
Institutional exposure to equities is at its highest level since November 2007, and American households' allocation to stocks has surpassed the 2000 tech-bubble highs. The good news is that the majority of risk assets have rebounded from April's crash and ripped higher year-to-date.
CNBC's "Mad Money" host Jim Cramer highlighted the conflicting forces driving the artificial intelligence (AI) sector, pointing to both caution and urgency in corporate spending. This comes amid a report from GQG Partners, which argues that the AI investments are exhibiting the dotcom era “on steroids.
Victoria Greene, CIO at G Squared Private Wealth, says AI trade has legs, advises tuning out market noise, and highlights Vulcan Materials as a strong play on construction and infrastructure growth.
Nicholas Janvier of Columbia Threadneedle Investments says AI spending remains strong, markets may broaden, and the Fed is managing rate cut expectations amid slowing employment.

High-quality small-cap stocks perform significantly better. These 12 companies fit that description.
I see risks building in the S&P 500 as concentration and valuations rise, making future returns less certain. Big Tech dominates, reducing diversification benefits and creating hidden vulnerabilities in the index.
Anastasia Amoroso, Partners Group chief investment strategist, joins 'Squawk Box' to discuss the latest market trends, the Fed's interest rate outlook, state of the AI trade, strength of the labor market, and more.

CNBC's Andrew Ross Sorkin reports on the 5 things to know on September 24, 2025.
Trump offers U.N. a warning on energy purchases from Russia, OpenAI, Oracle, and SoftBank are opening five new data centers, Disney is raising streaming prices, and more news to start your day.
What matters in U.S. and global markets today
During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.
As of Sept. 24, 2025, two stocks in the real estate sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
Wells Fargo's chief equity strategist Ohsung Kwon said the AI trade will continue to dominate stock market gains, until this beaten-down area of the economy starts to show signs of life.
Wall Street's main indexes were subdued in choppy trading on Wednesday as traders assessed measured comments from U.S. Federal Reserve Chair Jerome Powell and awaited key economic data due later in the week.