The Nasdaq 100 is Nearing a Rare 10-Day Winning Streak as Stocks Remain Steady

U.S. equities held on to early gains Tuesday morning, with major indexes hovering near all-time highs as investors braced for the Federal Reserve to restart its interest-rate cutting cycle.

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By 9:45 a.m. in New York, the S&P 500 was little changed, while the Nasdaq 100 edged higher but struggled to extend momentum. If the tech-heavy benchmark closes in positive territory, it would notch its 10th straight day of gains the longest winning streak since November 2021.

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Among individual stocks, Oracle Corp. surged after CBS News reported the software company is part of a consortium working on a deal that could allow TikTok to continue operating in the U.S. if an agreement is finalized. Tesla Inc. also advanced, despite facing a new investigation by U.S. auto safety regulators into potential defects in some vehicle doors.

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On the economic front, retail sales rose for a third consecutive month in August, underscoring the resilience of consumer spending. Commerce Department data showed purchases climbed 0.6% from July, surpassing all economist forecasts in a survey. Excluding autos, sales increased 0.7%.

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The Federal Reserve kicked off its two-day policy meeting on Tuesday, with markets fully pricing in a 25-basis-point rate cut. The central bank’s decision comes as political tensions grow: the White House said it will appeal a court ruling that blocked President Donald Trump’s attempt to remove Fed Governor Lisa Cook, setting the stage for a legal battle with major implications for the Fed’s independence.

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As the S&P 500 continues setting record after record, some investors warn that the rally could be forming into a bubble. High valuations for the benchmark index are often pointed to as a key risk.

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But according to Seaport Research Partners, the real concern may lie outside of technology stocks. Bloomberg Intelligence data show that an index of S&P 500 companies excluding the tech sector has climbed 13% over the past year, while earnings growth has lagged at just 6.4%.

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Despite valuation worries, sentiment among global fund managers has turned more optimistic. Bank of America’s latest fund manager survey revealed that a net 28% of respondents are overweight equities the highest reading in seven months.

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Meanwhile, expectations for economic growth showed the sharpest improvement in nearly a year. Only 16% of investors now predict a weaker economy, according to Michael Hartnett, BofA’s chief investment strategist.

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