Story perspectives

Softer Inflation Boosts Rate-Cut Bets, S&P Posts Quarterly Gain

By Drooid · Oct 1, 2026, 2:30 PM UTC · How we work

Summary

US Stocks Gain

U.S. stock indexes posted second straight quarterly gains as softer inflation eased rate-hike odds.
Nasdaq rose 0.24% to 26,861 points.
S&P 500 slipped 0.23% to 7,653.
Dow Jones fell 0.84% to 50,918, marking a quarterly decline.
ADP reported private payrolls added 90,000 jobs in September after a revised August loss of 36,000.

Summary

AI Megacaps Spend

Top 10 S&P 500 stocks now hold about 39% of the index’s $70.4 trillion market value.
The S&P 500 Shiller CAPE ratio exceeds 40, approaching the dot-com bubble record of 44.
AI-focused megacaps plan to spend roughly $300 billion on data-center infrastructure in H1 2026.
Goldman Sachs says hyperscalers need at least $300 billion AI revenue annually to break even and $1 trillion for healthy margins.

History

Historical Context

The dot-com bubble peaked on March 10 2000 when the NASDAQ Composite reached 5,048.62, then shed 78 % of its value by October 2002. Over-valuation and heavy concentration in firms such as Microsoft, Cisco and Amazon prompted the Federal Reserve to raise interest rates, tightening credit. The crash showed how sector concentration can trigger severe market corrections.

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US Stocks Gain

U.S. stock indexes posted second straight quarterly gains as softer inflation eased rate-hike odds.
Nasdaq rose 0.24% to 26,861 points.
S&P 500 slipped 0.23% to 7,653.
Dow Jones fell 0.84% to 50,918, marking a quarterly decline.
ADP reported private payrolls added 90,000 jobs in September after a revised August loss of 36,000.

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