U.S. stocks continue to hover at record highs ahead of the Federal Reserve’s expected 25-basis-point rate cut, with optimism driven by strong tech earnings and AI enthusiasm. Nvidia remains the market’s focal point as it approaches a $5 trillion valuation, while Microsoft, Apple, and Alphabet see sustained inflows ahead of earnings. Donald Trump’s suggestion of easing tariffs and export restrictions toward China adds another tailwind for semiconductor stocks, especially NVDA and AMD. Yet, concerns grow over the market’s narrow leadership and overextended valuations, making a short-term pullback plausible if Fed guidance turns cautious. Trading opportunities lie in momentum setups—buying Nvidia or Microsoft breakouts on confirmed volume strength or accumulating Tesla on pullbacks near support. Defensive strategies include trimming profits from overheated AI names or hedging via inverse ETFs before key policy and earnings events. Watch Fed Chair Powell’s tone, U.S.–China headlines, and Big Tech results closely; these will dictate whether the market sustains its upward momentum or transitions into consolidation over the coming week.