US stocks open higher despite concerns over the US government shutdown
|- US stocks advance as investors assess the impact of Washington’s budget paralysis.
- Optimism around Artificial Intelligence remains strong following the deal between AMD and OpenAI.
- Markets continue to price in a Federal Reserve rate cut in October.
US stocks move higher at the start of Tuesday’s US session on Wall Street, with the S&P 500 up 0.1%, the Dow Jones Industrial Average (DJIA) gaining 0.3%, and the Nasdaq 100 adding 0.2%. The S&P 500 has gained for seven straight sessions, and Tuesday could be the eighth consecutive up day.
Investors remain focused on the shutdown of the US government, now entering its second week, which has delayed the release of several key economic reports and made it more difficult for the Federal Reserve (Fed) to gauge the outlook.
This political uncertainty adds to a backdrop still dominated by strong enthusiasm for Artificial Intelligence (AI). The announcement of a major deal between Advanced Micro Devices (AMD) and OpenAI, under which AMD will supply AI chips in exchange for a 10% stake in the company, has driven AMD shares up by more than 23% and boosted the broader technology sector.
On the macroeconomic front, the shutdown continues to cloud economic visibility. The delayed release of the US jobs report deprives the Fed of key data ahead of its October meeting, where markets expect a 25-basis-point rate cut, according to the CME FedWatch tool.
Meanwhile, Gold reaches a fresh all-time high near $4,000 per ounce, supported by safe-haven demand and expectations of extended monetary easing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.