UPDATE: Wall Street is surging right now as the S&P 500 and Nasdaq rally on the back of AMD’s groundbreaking chip-supply deal with OpenAI. This surge underscores a remarkable investor enthusiasm for artificial intelligence, effectively countering fears over a potential federal government shutdown.
The Nasdaq has gained 85.46 points, or 0.38 percent, hitting 22,865.97, while the S&P 500 climbed 8.59 points, or 0.13 percent, to 6,724.38. Meanwhile, the Dow Jones Industrial Average fell 218.34 points, or 0.47 percent, to 46,540.49.
Investor excitement around AMD’s deal has driven its shares up by an astonishing 26.6 percent, marking a more than one-year high. The stock is currently the top performer on the benchmark index. “The dollar amounts around these partnerships and around the buildout of the infrastructure to support AI are getting to be really astounding,” stated Leah Bennett, chief investment strategist at Concurrent Asset Management.
Other semiconductor stocks are also seeing gains. Marvell Technology and Micron Technology rose 4.2 percent and 5.5 percent, respectively, while AI server maker Super Micro Computer jumped 6.3 percent. AI-linked firms are also advancing with Palantir Technologies up 5.0 percent and Oracle gaining 2.3 percent. The broader semiconductor index has hit a record high, rising 3.8 percent overall.
Despite these gains, the ongoing impasse in Washington, D.C., has delayed the release of the highly anticipated non-farm payrolls report. Analysts suggest that if the shutdown continues, it could delay critical economic data, creating uncertainty for the Federal Reserve’s next meeting. Goldman Sachs has highlighted that the upcoming military pay date on October 15 could compel lawmakers to resolve their deadlock quickly. If no resolution is reached, approximately 1.3 million uniformed military personnel would remain unpaid.
As the government standoff continues, the focus is shifting toward the third-quarter earnings season, which kicks off next week. Analysts predict that by the end of October, 68 percent of companies representing 72 percent of market cap will have reported earnings. “While the government shutdown is the focus now, earnings and the Fed will soon take center stage,” noted Bret Kenwell, a U.S. investment analyst at eToro.
In other notable stock movements, Tesla gained 2.0 percent after teasing an event on social media platform X, while Comerica saw a significant rise of 13.9 percent following news of its acquisition by Fifth Third in an all-stock deal valued at $10.9 billion. Shares of Fifth Third dropped 1.5 percent in response.
Crypto stocks are also on the rise, with Bitcoin hovering near all-time highs. Coinbase Global climbed 1.0 percent, Riot Platforms surged 4.9 percent, and MARA Holdings increased by 3.7 percent.
As the trading day unfolds, declining issues marginally outnumber advancers on the NYSE, with a ratio of 1.01-to-1. However, on the Nasdaq, advancing issues are leading with a ratio of 1.24-to-1. The S&P 500 recorded 28 new 52-week highs and 6 new lows, while the Nasdaq Composite noted 121 new highs and 27 new lows.
Stay tuned for more updates as this story develops and Wall Street reacts to these pivotal economic indicators!
