US stock futures saw an uptick on Wednesday, particularly with the Dow Jones Industrial Average poised for a potential record. This increase follows a wave of positive earnings reports that have heightened enthusiasm around artificial intelligence (AI) prospects and fueled optimism regarding the likelihood of an imminent resolution to the ongoing government shutdown.
Dow futures climbed by 0.3%, building on the blue-chip index’s record-high close from the previous day. Meanwhile, S&P 500 futures gained approximately 0.4%, and contracts for the Nasdaq 100 surged nearly 0.6%. The tech sector is experiencing renewed vigor, spurred by Advanced Micro Devices (AMD) reporting ambitious sales forecasts due to its AI initiatives. AMD’s shares skyrocketed over 5% in premarket trading, with Nvidia also recording a notable increase of over 1%, signaling a rebound in chip stocks.
Investor sentiment received a further boost as discussions around a pivotal House vote began. Lawmakers are expected to cast their votes later in the day, which could bring an end to the longest government shutdown in US history. Approval of the measure appears likely, especially with President Trump expressing his support, which could facilitate the swift re-opening of government operations. This development would allow the release of crucial economic data that had been postponed during the shutdown, including September’s jobs report, which could be available as soon as next week.
Market participants are eagerly awaiting insights into economic conditions, having relied largely on private data in recent weeks to gauge the Federal Reserve’s next steps on interest rates. Several Federal Reserve officials, including Trump’s latest appointee, Stephen Miran, and Christopher Waller, who is reported to be a candidate for the central bank’s next chair position, are scheduled to speak on Wednesday. Market expectations are leaning towards a possible quarter-point rate cut at the Fed’s December meeting.
The earnings season continues, albeit at a slower pace, with most reports from S&P 500 companies already released. The results from Cisco Systems are slated for later in the day, and early reports from Circle indicate a quarterly profit that surpassed expectations, driven by stablecoin growth, even though its stock fell in premarket trading.
Among notable premarket movers, Bill Holdings experienced a significant jump of 12% amid reports of the company exploring a potential sale. Micron Technology also saw a 2% rise, buoyed by the positive momentum surrounding AMD, while Lyft’s shares climbed 2% following analysts increasing their price targets for the ride-sharing company.
Foxconn, the world’s largest contract electronics manufacturer and a key supplier for Nvidia, saw its shares rise by 1% after announcing a bullish demand outlook for AI-related products and hinting at an upcoming announcement with OpenAI. This reflects a growing confidence in the AI sector’s long-term growth trajectory.
In other technological developments, IBM introduced a new quantum computing chip named the Quantum Nighthawk, which is expected to enhance the company’s capabilities in this cutting-edge field. IBM aims to achieve “quantum advantage” by late 2026, partnering with a range of major corporations like Boeing and Lockheed Martin.
On the international front, Japanese Finance Minister Satsuki Katayama expressed concern over the yen’s depreciation as it nears critical levels against the dollar. This situation has sparked speculation regarding potential government intervention to stabilize the currency.
Finally, the gold market appears to be consolidating after a three-day streak of gains as traders assess the impact of possible government reopening and the associated economic implications.
