FX.co ★ US Stocks at Record Highs, Dow Leaps 500 Points

On Friday, U.S. stocks surged to new all-time highs, capping off a robust week even amidst the headwinds of a government shutdown that has now persisted for three days. The S&P 500 rose by 0.5%, while the Dow Jones jumped by more than 500 points, and the Nasdaq increased by 0.3%. The market has largely disregarded the shutdown’s impact, despite its role in delaying the September jobs report and contributing to an absence of economic data for the Federal Reserve before its October policy meeting. Instead, investors have focused on private sector data, which, although indicating a weakening labor market, has reinforced expectations of a potential Fed interest rate cut later this month. Simultaneously, the ongoing excitement surrounding artificial intelligence continues to drive market gains, underscored by OpenAI’s valuation reaching $500 billion and new collaborations with companies like Hitachi, Fujitsu, and Nvidia. Each of the three major stock indices is poised for noteworthy weekly gains, with the S&P 500 up by 1.1%, the Dow by 1%, and the Nasdaq nearly 2%, positioning the S&P for its longest consecutive run of gains since July.