URGENT UPDATE: Wall Street’s main indexes are surging today as investors celebrate a likely end to the 42-day US government shutdown. The Dow Jones Industrial Average has reached an all-time high, climbing by 361.85 points to 48,297.95, as optimism grows over economic stability and corporate earnings.
This significant market movement comes on the heels of an optimistic earnings outlook from Advanced Micro Devices (AMD), which reported a staggering 8.2 percent increase in its stock after announcing expectations of $100 billion in annual data center chip revenue over the next five years. With earnings projected to more than triple, AMD’s performance is injecting confidence into the tech sector.
However, the stock market faced early pressure following the announcement that SoftBank Group sold its stake in Nvidia, raising concerns about overvaluation in the tech industry. Despite this, the broader semiconductor index climbed by 1.8 percent, and technology shares overall rose by 0.4 percent.
In early trading on Wednesday, the S&P 500 gained 16.96 points to 6,864.31, while the Nasdaq Composite rose 7.81 points to 23,476.11. Financial stocks are also experiencing an uptick, with Goldman Sachs boosting the Dow with a 2.2 percent rise.
As the US House of Representatives reconvenes in Washington, D.C. for a critical vote that could reopen the government, the implications are significant for air travel and food subsidies. The vote is expected to take place this evening, with President Donald Trump likely to sign the funding compromise into law.
Michael Landsberg, CIO at Landsberg Bennett Private Wealth Management, stated,
“There is an even bigger mountain ahead of us and that is the resumption of all of the economic data.”
He emphasized that the market has been operating without crucial government data and is now facing a pivotal moment as economic indicators are set to return.
The shutdown has cast a shadow over the economy, and private economic indicators have been the primary tools for both the Federal Reserve and traders to assess the situation. Recent data from the October 25 ADP payroll report indicates ongoing labor market challenges, with private employers shedding an average of 11,250 jobs weekly over the past four weeks.
Market analysts are currently pricing in a 63 percent probability of a 25-basis-point reduction in interest rates at the Federal Reserve’s December meeting. Notable Fed policymakers, including Christopher Waller, are scheduled to speak throughout the day, further influencing market sentiment.
With 82 percent of the 446 companies in the S&P 500 exceeding earnings expectations this quarter—far above the long-term average of 67 percent—investors are keeping a close eye on upcoming earnings reports, particularly from AI leader Nvidia, which is expected to announce results next week.
In other market movements, shares of IBM increased by 2.9 percent following the announcement of new quantum computing chips. Advancing issues outnumbered decliners by a 1.99-to-1 ratio on the NYSE and 1.89-to-1 on the Nasdaq, signaling a broad-based rally.
As investors await the House vote, the outcome could bring much-needed relief to the markets and the economy at large. Stay tuned for further updates on this developing story.
