US stocks are rising and approaching another record high. The S&P 500 rose 0.2% early Wednesday and was close to the all-time high set two weeks ago. The Dow Jones Industrial Average added 127 points after setting its own record the day before, while the Nasdaq Composite rose 0.3%. Technology stocks are back on the rise. Advanced Micro Devices rose after its CEO said the chip company expects 35% compound annual growth in revenue over the next three to five years. Shares of Nvidia, the dominant maker of chips used in artificial intelligence technology, also rose.
This is a breaking news update. The previous AP story follows below.
Wall Street is on track to open higher on Wednesday as the end of the US government shutdown approaches, and technology stocks appear to be regaining ground after this week’s wild swings.
S&P 500 futures rose 0.4%, while Dow Jones Industrial Average futures rose 0.3%. Futures for the technology-heavy Nasdaq index rose 0.6%.
The longest federal government shutdown in US history may end on Wednesday, however Not without stumbling The economy is already under pressure.
More than 1 million federal workers have not been paid since October 1. Thousands of flights have been cancelled, a trend that is expected to continue. It continues this week Even if the US government reopens. Many food aid recipients testified Benefits have been cut off.
Congressional Budget Office estimated The six-week closure will reduce growth in the fourth quarter of this year by about 1.5 percentage points.
In addition to the government shutdown Cut off the flow of economic data On unemployment, inflation, and retail spending, the Federal Reserve relies on it to monitor the health of the economy. That could mean the Fed will not deliver a third rate cut at its December meeting, which was widely expected before the shutdown.
The Federal Reserve’s rate-setting committee is closely divided on whether to cut its key interest rate, partly because the health of the economy is unusually cloudy, Federal Reserve Chairman Jerome Powell said.
The technology sector seems to have stabilized after that Recent salesWith growing fears that stock prices have become too expensive. Nvidia, which is up 44% this year, is down 5% this week.
CoreWeave, a close partner of Nvidia, fell 17% on Tuesday after its forecast for next year disappointed AI investors accustomed to rapid growth. The company went public in March. Its shares rose 3% early Wednesday.
Shares of Advanced Micro Devices, whose shares have more than doubled this year, rose 5% overnight after the chipmaker forecast massive revenue growth in its data center business due to demand for artificial intelligence.
The big question was whether investors would push the AI stock craze any further.
Its amazing growth has been one of the main reasons the US market has reached record numbers though Labor market slowdown and High inflation. But with them Prices have risen dramatically That critics say they are Reminiscent of the dot-com bubble of 2000, Which eventually exploded, pulling the S&P 500 nearly in half.
Elsewhere, in Europe at midday, France’s CAC 40 and Germany’s DAX rose 1.2%. The British FTSE 100 index was unchanged.
In Asian trading, Japan’s Nikkei 225 index added 0.4% to close at 51,063.31.
Hong Kong’s Hang Seng Index rose 0.9% to 26,922.73, while the Shanghai Composite Index fell less than 0.1% to 4,000.14.
Australia’s S&P/ASX 200 index fell 0.2% to 8,799.50. South Korea’s Kospi added 1.1% to 4,150.39.
In energy markets, the price of benchmark US crude fell 65 cents to $60.39 a barrel. Brent crude, the international standard, lost 66 cents to $64.50 a barrel.
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