US markets today: Wall Street inches toward new highs as tech stocks rebound; shutdown relief lifts investor mood
US stocks edged higher on Wednesday, with benchmark indices inching toward record levels as easing worries over the government shutdown and a rebound in technology shares buoyed investor sentiment, according to an AP report.The S&P 500 rose 0.2% in early trade, nearing its all-time high from two weeks ago, while the Dow Jones Industrial Average added 127 points after closing at a record high the previous day. The Nasdaq Composite climbed 0.3%, led by renewed buying in chip stocks, AP reported.Technology stocks led the advance, helping markets regain momentum after a volatile start to the week. Advanced Micro Devices (AMD) jumped after CEO Lisa Su projected annual compounded revenue growth of more than 35% over the next three to five years. Shares of Nvidia, the market leader in AI-focused chips, also advanced following recent losses.The broader market opened higher after futures trading signalled optimism that the longest federal government shutdown in US history could end soon. Futures on the S&P 500 and Nasdaq gained up to 0.6%, reflecting renewed investor confidence.Despite the improving mood, economists warned that the shutdown has already left a dent in the economy. The Congressional Budget Office (CBO) estimated that a six-week closure could shave about 1.5 percentage points off fourth-quarter GDP growth.The disruption has also halted key government data on jobs, inflation, and retail sales, leaving the Federal Reserve with limited insight into the economy’s trajectory. That uncertainty could prompt the Fed to delay a potential rate cut in December, a move many investors had expected.Fed Chair Jerome Powell acknowledged the division within the central bank over rate policy, saying that “the economy’s health is unusually cloudy.”After several days of sharp swings, the AI sector appeared to stabilise. Nvidia’s partner CoreWeave rose 3% after tumbling 17% on Tuesday due to weaker-than-expected guidance. Analysts said investor focus has shifted toward earnings durability amid concerns that valuations in AI stocks have become overheated, drawing comparisons with the 2000 dot-com bubble.European markets traded mostly higher, with France’s CAC 40 and Germany’s DAX each climbing 1.2%, while the UK’s FTSE 100 was flat. In Asia, Japan’s Nikkei 225 added 0.4% to close at 51,063.31, and Hong Kong’s Hang Seng rose 0.9% to 26,922.73. Shanghai’s Composite Index slipped marginally, while South Korea’s Kospi gained 1.1%.In energy markets, US crude slipped 65 cents to $60.39 a barrel, and Brent crude fell 66 cents to $64.50.
