US stock futures showed a slight uptick on Wednesday as investors eagerly anticipated the release of the latest Federal Reserve minutes, looking for insights into the economy amidst a slowdown of economic data due to the ongoing government shutdown. Futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all rose approximately 0.2%.
The upcoming minutes from the Fed’s September meeting are expected to shed light on the central bank’s internal disagreements and its outlook for interest rates, particularly as the shutdown has resulted in the absence of key economic reports. Notably, the Bureau of Labor Statistics failed to publish the September jobs report on schedule, which typically provides critical data influencing the Fed’s policy decisions based on labor market conditions.
On Tuesday, all three major stock market indices closed lower, interrupted by disappointing cloud margin reports from Oracle that rekindled concerns surrounding the artificial intelligence sector. This downturn marked an end to a seven-day winning streak for both the S&P 500 and Nasdaq.
Meanwhile, gold futures saw a significant rise after surpassing the $4,000 an ounce benchmark for the first time, reflecting a doubling in value over the last two years. The price surge was fueled by growing anxieties about the US economy, which have been exacerbated by the ongoing federal government shutdown. This stoppage, now in its seventh day, has created an air of uncertainty, with no resolution in sight. President Trump’s insistence on Republicans’ position, refusing to negotiate with Democrats on healthcare subsidies until the government reopens, adds to the impasse. Additionally, Trump has threatened to withhold back pay for furloughed Federal workers.
In corporate news, Intel’s stock has skyrocketed 90% over the past six months, not necessarily due to strong operational performance, but from significant investments from Nvidia and the US government. However, HSBC analyst Frank Lee provided a sobering assessment, downgrading Intel’s stock rating and warning that the current re-evaluation driven by new deals might not be sustainable. He cited the company’s challenges with fabrications as crucial to its potential turnaround, stating that substantial ongoing investments could help yet expressing skepticism about meaningful technological advancements without crucial partnerships—particularly with TSMC.
In a different vein, Nvidia is making headlines by increasing its investment in Elon Musk’s AI venture, xAI. The funding, which now totals $20 billion, indicates strong backing and will involve Nvidia providing chips to the AI startup for its ambitious data center project. Shares of Nvidia experienced a slight increase in premarket trading following this news.
Additionally, shares of Confluent jumped 18% in premarket trading after the company announced it is exploring a sale, sparking interest from potential acquirers. As the market digests these developments, the focus remains firmly on upcoming economic indicators and the ongoing effects of the government shutdown.
