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.
Author
Ghiles Guezout
FXStreet
Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.
