CNBCยท2025-10-01 11:07Market Overview - The third quarter of 2025 was strong for Wall Street, with the S&P 500 and Nasdaq increasing by 7.8% and 11.2% respectively from June 30 to the end of the quarter [1] - Year-to-date, the S&P 500 and Nasdaq have gained over 13% and 17% respectively, indicating a robust market performance [1] - The final quarter of the year is historically the strongest for stocks, although it began with uncertainty due to a government shutdown [1] Federal Reserve and Economic Factors - The Federal Reserve announced a quarter-percentage point reduction to the overnight lending rate on September 17, marking the first cut since December 2024 [1] - Investors are speculating on the implications of President Trump's tariff policies and the sustainability of the generative AI trade [1] Top Performers - Apple: Increased by 24.1% due to a $100 billion investment in U.S. manufacturing, favorable rulings in antitrust cases, and positive demand for new products [1] - Broadcom: Rose by 19.7% after exceeding earnings expectations and receiving significant AI-related orders, prompting an increase in price target from $290 to $350 [1] - Nvidia: Gained 18.1% as AI spending remains strong, supported by positive earnings reports from major tech companies and a $100 billion investment in OpenAI [1] Bottom Performers - Salesforce: Decreased by 13.1% due to concerns over revenue impacts from generative AI and disappointing quarterly earnings [1] - Texas Roadhouse: Fell by 11.3% as commodity inflation, particularly higher beef prices, raised concerns about cost absorption versus passing costs to consumers [1] - Honeywell: Dropped by 9.6% ahead of its split into three publicly traded entities, a situation referred to as "spin purgatory" [1][2]