Stock futures are showing positive movement this morning following the Dow Jones Industrial Average’s recent record closing high on Tuesday. The anticipation is building as the House of Representatives gets ready to vote on crucial legislation aimed at ending the six-week U.S. government shutdown. Meanwhile, shares of Advanced Micro Devices (AMD) are rising significantly after the chipmaker announced optimistic revenue growth projections for the coming years. Additionally, reports indicate that the White House is considering strategies to limit the influence of proxy advisers and index-fund managers in shareholder voting. Another noteworthy development is the remarkable performance of On Holding, whose shares are surging after the sneaker manufacturer released strong earnings and raised its guidance.
Stock futures have climbed as investors remain focused on Washington D.C. developments, specifically the vote expected later today which could resolve the ongoing government shutdown. As of the latest updates, Dow Jones Industrial Average futures saw an increase of 0.2%, building on the index’s record-setting closing on Tuesday. In a show of broader market optimism, S&P 500 and Nasdaq futures were also up by 0.4% and 0.6%, respectively. Cryptocurrencies are fluctuating, with Bitcoin hovering just under $105,000, while gold futures rose by 0.6%, nearing their highest levels in three weeks. The yield on the 10-year Treasury note decreased to 4.08%, down from the previous day’s close of 4.11%.
In the legislative arena, the House is positioned to pass a spending bill to reopen the government through January, effectively ending what could become the longest shutdown in U.S. history. Following a key vote from a House committee on Wednesday, the Senate-backed measure has moved forward, despite some attempts from Democrats to amend the legislation. President Trump is anticipated to sign the bill, bringing much-needed relief from the service disruptions caused by the shutdown, which has significantly affected the air traffic control system and stalled several government economic reports.
In corporate news, AMD is experiencing a significant surge in premarket trading. CEO Lisa Su announced at the company’s inaugural analysts day that revenue could increase by 35% annually over the next three to five years, thanks to a robust demand for AI chips. The business segment focused on AI data centers is projected to grow even more aggressively, potentially hitting tens of billions in sales by 2027. Adding to the excitement, AMD’s expected gross margins are forecasted to reach between 55% and 58%, surpassing analysts’ expectations. As a result, AMD shares, which have nearly doubled in value this year, witnessed a 6% rise ahead of the market’s opening.
Moreover, news on the regulatory front indicates that the White House is contemplating measures to diminish the power of proxy advisers and index-fund managers over shareholder voting decisions. Reportedly, administration officials are exploring executive orders that may limit these firms’ capacity to make recommendations, with specific scrutiny on well-known proxy advisers like Institutional Shareholder Services and Glass Lewis. This initiative follows criticism from corporate leaders, including Tesla’s Elon Musk, who encountered resistance from proxy firms regarding his controversial compensation package.
Finally, shares of On Holding have surged as the sneaker maker reported better-than-expected third-quarter earnings and improved its annual guidance once again. The company, which saw a 25% year-over-year revenue increase, now anticipates full-year sales growth of 34% on a constant-currency basis, exceeding its previous target of at least 31%. Co-founder Caspar Coppetti has indicated that the brand will not offer Black Friday discounts, opting instead for full pricing during the holiday season. In light of these developments, On Holding shares, having dropped significantly earlier in the year, surged by 8% in recent trading.
