U.S. stock indexes are drifting on Wednesday, ahead of the Federal Reserve’s upcoming decision on interest rates and after two days of disruption driven by doubts about the artificial-intelligence boom.

Warren Buffett's historic $127 billion warning to Wall Street happens to align with another stock market alarm. Specifically, the S&P 500 currently trades at a historically expensive valuation. The index achieved a cyclically adjusted price-to-earnings ratio (CAPE) of 37.9 in December 2024, which is a substantial premium to 20-year average of 27.

Monday’s meltdown was a cold plunge on what had otherwise been a bull market for tech on the belief that AI would usher in a new golden age of worldwide productivity and sector-

Netflix shot up 14.6% after it reported adding nearly 19 million subscribers during the holiday-season quarter and it topped sales and profit targets. The video streaming service’s expansion into live programming appears to be paying off as it wrapped up its best year ever with more than $40 billion in revenue.