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Stock market today: Nasdaq soars to lead stocks higher as AI hopes run high

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Investors are starting the week in an upbeat mood as techs shine ahead of a pivotal Fed policy call.

Techs led a jump in US stocks on Monday ahead of a key Federal Reserve rate decision, as investors set aside worries about stalled interest rates to focus on hopes around AI developments. The benchmark S&P 500 gained almost 1%, while the tech-heavy Nasdaq Composite surged 1.2%. The Dow Jones Industrial Average added roughly 0.4%, signaling a comeback from Friday's losses.

Expectations are for the central bank to keep rates unchanged at a 23-year high in its decision on Wednesday. Techs were on the rise, buoyed by AI buzz as chipmaker Nvidia's annual developer conference kicked off on Monday. Meanwhile, Alphabet shares climbed after a Bloomberg report that Apple is in talks to build Google's Gemini AI engine into its next iPhone.

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