US stock futures experienced a modest uptick on Friday, continuing their upward trajectory following recent record highs. Futures for the Dow Jones Industrial Average, the benchmark S&P 500, and the tech-heavy Nasdaq 100 all posted gains of approximately 0.1%. The rally in stocks has largely been fueled by fresh developments in artificial intelligence partnerships, despite the ongoing government shutdown that is expected to affect key market data.
Recent collaborations between tech giants have sparked optimism on Wall Street. Hitachi announced a partnership with OpenAI focused on energy projects, while Fujitsu expanded its collaboration with Nvidia to enhance AI capabilities. These developments underscore a growing trend of alliances between Japanese firms and major US technology players, which seem to be invigorating investor sentiment.
Normally, the forthcoming release of the September jobs report would set the tone for the market, with investors keenly watching it for hints on the labor market’s strength. However, the ongoing government shutdown is likely to delay this crucial report. Some lawmakers, including Democratic Senator Elizabeth Warren, have urged the Trump administration to proceed with its publication, emphasizing its importance in informing decisions on interest rates by the Federal Reserve. With the jobs report’s uncertainty, investors have turned to alternative private data, indicating a significant slowdown in the labor market.
As the government shutdown continues into its second day, market participants remain hopeful about the potential of AI, especially after OpenAI’s valuation soared to $500 billion, making it the most valuable startup globally. The Nasdaq Composite, alongside the S&P 500 and Dow Jones Industrial Average, reached unprecedented levels, reflecting this optimism.
On the political front, resolution to the shutdown remains elusive. Democrats are advocating for the continuation of healthcare subsidies as a non-negotiable condition for government funding, whereas Republicans are standing firm against any negotiations until the government reopens. President Trump has amplified his rhetoric, threatening to dismiss federal employees and cut funding for projects in states that lean Democratic.
Meanwhile, in company-specific news, Amazon is witnessing bullish sentiment ahead of its third-quarter earnings report. Analysts from DA Davidson and Goldman Sachs have reiterated buy ratings on the stock, driven by a positive outlook for Amazon Web Services (AWS). They project a steady growth rate of over 20% for AWS sales through the end of 2026.
Tesla shares saw a slight increase of 1% in premarket trading after an initial dip of 5% on Thursday, despite reporting better-than-expected global third-quarter deliveries. The recent sales surge appears to be driven by consumers rushing to take advantage of expiring electric vehicle tax credits.
In premarket trading, several stocks were trending, including Applied Materials, which saw a drop of 3% following news of a $600 million hit to its fiscal 2026 revenue due to expanded export restrictions. On the flip side, Tesla benefited from strong delivery figures, while Hitachi’s shares surged nearly 9% after its partnership announcement with OpenAI.
In another significant partnership, Nvidia and Fujitsu have agreed to collaborate on AI technologies aimed at developing smarter robots and other innovative products. This partnership has led to a 3% rise in Fujitsu’s stock.
Turning to the oil market, prices are on track for a substantial weekly decline, signaling the largest drop since late June. Brent crude is trading around $65 per barrel, down nearly 8% for the week, as the OPEC+ group prepares for an online meeting to discuss output decisions for November. Analysts are speculating about a potential oversupply in the global market, supported by the International Energy Agency’s forecasts of record surpluses in the coming year.
In the tech arena, Alibaba continues to catch the eye of both hedge funds and retail investors, riding on a wave of optimism surrounding its future prospects. As the market grapples with various economic signals and political developments, the focus on technological advancements, especially in AI, seems poised to sustain momentum.
