AI-Driven Gains Propel Wall Street Amidst Government Stalemate
Wall Street saw gains spurred by AI-related deals, even as a U.S. government shutdown entered its sixth day. The S&P 500 and Nasdaq hit record highs, driven by semiconductor and tech stocks, notably AMD's partnership with OpenAI. Investors await third-quarter earnings as economic data releases stall.
On Monday, Wall Street stocks advanced due to a surge in artificial intelligence-related dealmaking, which lifted investor confidence amid a prolonged U.S. government shutdown now in its sixth day. The stocks were driven by AMD's announcement to supply AI chips to OpenAI, leading the Nasdaq and S&P 500 towards record closings, while the Dow saw a slight decline.
Despite the government's closure, economic sentiment remained solid, with experts, like Tim Ghriskey of Ingalls & Snyder, noting favorable earnings themes. Investors are keenly watching for third-quarter earnings as key economic indicators' release is postponed, forcing reliance on alternative data to predict Federal Reserve's interest rate cuts.
The market saw mixed performances across sectors, with tech leading gains and consumer staples declining. Among notable movements, Tesla advanced following a social media teaser, while Starbucks shares fell due to labor market concerns. Wall Street braces for catalysts with upcoming earnings reports particularly from major banks, despite the data void created by the shutdown.
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