US stocks gain as investors anticipate the end of the federal shutdown

Wall Street’s major indexes rose on Wednesday, with the Dow Jones at a record high, as investors cheered the likely end of the longest US government shutdown and positive earnings prospects from Advanced Micro Devices revived optimism around AI.AMD advanced 8.2% after the chip designer said it expects annual data center chip revenues to reach $100 billion within the next five years, and profits to more than triple.

U.S. stocks came under pressure early Tuesday after news that Japanese tech investor SoftBank Group sold its stake in Nvidia and a predicted cutback from AI cloud service provider CoreWeave raised concerns about fast-growing valuations among tech companies.On Wednesday, the broader semiconductor index rose 1.8%, while information technology stocks rose 0.4%.

Goldman Sachs was the biggest boost for the Dow Jones, rising 2.2%. Financials on the S&P 500 gained 1%.

At 9:41 a.m. ET, the Dow Jones Industrial Average rose 361.85 points, or 0.77%, to 48,297.95, the S&P 500 gained 16.96 points, or 0.26%, to 6,864.31 and the Nasdaq Composite gained 7.81 points, or 0.03%, to 23,476.11. Meanwhile Members of the House of Representatives headed back to Washington for a vote that could reopen the government and restore air travel stability and food subsidies. “There is an even bigger mountain ahead of us and that is the resumption of all economic data,” said Michael Landsberg, CIO at Landsberg Bennett Private Wealth Management.

“The market flew blind with no data and now that the fog is clearing we will see if the market positioning has been correct and it is still clear or if a major repricing is needed.”

The vote will take place Wednesday evening on a compromise that would restore funding to government agencies, and President Donald Trump is expected to sign it into law.

The 42-day shutdown has weighed on the economy. In the absence of government-collected data, both the Federal Reserve and investors have looked to private economic indicators to gauge economic impact.

Tuesday’s weekly update of ADP’s preliminary payroll figures pointed to continued weakness in the labor market, with private employers cutting an average of 11,250 jobs per week for the four weeks ending Oct. 25.

According to CME Group’s FedWatch tool, traders currently estimate a 63% probability of a 25 basis point cut at the December monetary policy meeting.

A host of Fed policymakers, including Governor Christopher Waller, will speak throughout the day.

As third-quarter earnings season slowly comes to a close, 82% of the 446 companies in the S&P 500 have reported earnings above analyst expectations, compared to a long-term average of 67%, according to LSEG data.

AI Indicator Nvidia’s earnings next week could test the optimism surrounding the technology that has driven markets to record highs this year, but has come under increased scrutiny in recent weeks.

Among other moves, IBM shares rose 2.9% after announcing new quantum computer chips.

Advancing issues outpaced declining issues by a 1.99-to-1 ratio on the NYSE and by a 1.89-to-1 ratio on the Nasdaq.

The S&P 500 posted 18 new 52-week highs and one new low, while the Nasdaq Composite posted 47 new highs and 38 new lows.