Key Points
- U.S. stocks were set to open higher on hopes of an end to the government shutdown and a strong outlook from AMD.
- AMD’s stock surged after it forecast massive growth in its AI-driven data center business.
- The House is set to vote on a bill to reopen the government, which President Trump is expected to sign.
- The long shutdown has weighed on the economy, and the market has been operating without key government data.
Wall Street’s main indexes were set to open higher on Wednesday as investors cheered the likely end of the longest-ever U.S. government shutdown. An upbeat earnings outlook from the chipmaker Advanced Micro Devices also renewed optimism around the artificial intelligence sector.
AMD’s stock jumped 6.5% in premarket trading after the company said it expects to hit $100 billion in annual data center chip revenue within the next five years, with earnings more than tripling. This news helped calm nerves after U.S. stocks had come under pressure on Tuesday.
Concerns about high valuations in the tech sector grew after reports that SoftBank had sold its Nvidia stake and that AI cloud provider CoreWeave cut its forecast. However, the market recovered by the end of the day, with the Dow closing at a record high.
As of 9:33 AM (ET), Dow futures were up 0.51%, S&P 500 futures were up 0.21%, and Nasdaq 100 futures were up 0.31%.
A big reason for the positive mood is the progress in Washington. Members of the House of Representatives returned on Tuesday for a vote that could reopen the government and bring stability back to air travel and food subsidies. The vote is scheduled for Wednesday afternoon on a compromise deal that would restore funding to government agencies, and President Donald Trump is expected to sign it into law.
The 42-day shutdown has taken a toll on the economy. With no official government data available, both the Federal Reserve and traders have had to rely on private economic indicators. One of these, ADP’s preliminary payroll figures, pointed to continued weakness in the job market.
With the third-quarter earnings season mostly over, 82% of the 446 S&P 500 companies that have reported so far have beaten profit expectations. Looking ahead, Nvidia’s earnings report next week will be a major test of the optimism surrounding AI, which has been a huge driver of this year’s market rally.
