FX.co ★ US Stocks Close at Records on AI Rally Amid Shutdown Concerns

On Thursday, leading U.S. stock indices reached new heights, with the S&P 500 inching up by 0.1%, the Nasdaq advancing 0.4%, and the Dow Jones Industrial Average climbing 80 points. The upward momentum was largely fueled by ongoing enthusiasm for AI-driven trades, especially surrounding renewed interest in OpenAI. Meanwhile, investors kept a close watch on political developments in Washington, D.C., amidst President Trump’s threats to slash thousands of federal jobs in an attempt to exert pressure on Democrats during the ongoing government shutdown. The technology sector spearheaded the market rally, buoyed by AI-related gains from companies such as Nvidia, which rose by 1%, Broadcom, which saw a 1.5% increase, and AMD, up 3.5%. Notably, OpenAI's $6.6 billion share offering underscored its burgeoning partnership with South Korean chip manufacturers and pegged its valuation at a substantial $500 billion. Conversely, the health care and real estate sectors showed lackluster performance. Despite reporting a 7.4% year-on-year boost in global vehicle deliveries for the third quarter—partially driven by the lapse of the electric vehicle tax credit at September's end—Microsoft and Tesla experienced declines, with stock drops of 1.6% and 1.8%, respectively, reversing gains from earlier in the day.