U.S. stock futures were mostly higher Thursday as disappointing private payroll data fueled hopes for additional Federal Reserve interest rate cuts, even as a prolonged U.S. government shutdown continued to cloud sentiment. ChatGPT developer OpenAI reportedly reached a $500 billion valuation following a new secondary share sale, making it the world’s most valuable startup. Meanwhile, attention is on Challenger layoffs data, as the government closure could delay critical labor market reports.
Futures inch up
By 03:14 ET, Dow futures were largely flat, while S&P 500 and Nasdaq 100 futures edged up 0.1% and 0.2%, respectively. Investors largely shrugged off the ongoing U.S. shutdown, viewing weak private employment data as a sign the Fed may cut rates further this year.
Wall Street’s main indexes rose in the previous session, driven in part by gains in the health care sector. The rally began earlier in the week after Pfizer (NYSE:PFE) said it reached a deal with President Donald Trump to lower prescription drug prices in Medicaid in exchange for tariff relief. Trump suggested other drugmakers might follow suit.
AES (NYSE:AES) also led the S&P 500 higher after reports that BlackRock-owned Global Infrastructure Partners is nearing a $38 billion acquisition of the utility firm. Lithium Americas Corp (NYSE:LAC) shares rose after the U.S. Department of Energy announced a 5% stake in its joint venture with General Motors (NYSE:GM).
OpenAI valued at $500 billion
Following a secondary stock sale worth roughly $6.6 billion, OpenAI is now valued at $500 billion, according to reports citing sources familiar with the matter. This surpasses SpaceX, Elon Musk’s rocket company, previously valued around $400 billion.
Bloomberg News reported that current and former employees sold shares to investors including Thrive Capital, SoftBank, Dragoneer Investment Group, Abu Dhabi’s MGX, and T. Rowe Price. OpenAI was previously valued at $300 billion following a $40 billion funding round led by Japan’s SoftBank Group. Secondary share sales in U.S. startups are often used to provide liquidity for employees and retain talent. The sale fell short of the $10 billion-plus in stock OpenAI had made available, reflecting staff confidence in the company’s long-term prospects.
Dollar tries to stabilize after Supreme Court ruling
The U.S. dollar oscillated near flatline levels after the Supreme Court blocked Trump’s attempt to remove Fed Governor Lisa Cook immediately. The court will review the case during oral arguments scheduled for January.
“Markets weren’t deeply impacted by the firing attempt and are reacting modestly to the ruling, though it does signal stronger institutional protection for the Fed than other agencies,” analysts at ING said.
Despite early strength, the dollar index—which tracks the greenback against a basket of other currencies—fell 0.1% Thursday, marking four consecutive days of losses.
Challenger layoffs draw attention
The ongoing U.S. government shutdown could delay key economic reports, including Friday’s nonfarm payrolls. As a result, private figures like Thursday’s Challenger layoffs data may attract more focus than usual.
Earlier in the week, the ADP National Employment Report showed the largest drop in private payrolls in over two years for September. Meanwhile, job openings increased slightly in August even as hiring fell.
The Fed has closely monitored labor market data to guide monetary policy. Last month, borrowing costs were cut by 25 basis points, with policymakers emphasizing the need to support a weakening jobs market despite persistent inflation. Chicago Fed President Austan Goolsbee suggested that central bankers may need to rely on alternative data before their October 16-17 meeting.
Gold near record levels
Gold hovered near all-time highs Thursday as safe-haven demand remained elevated amid the government shutdown and expectations of further interest rate cuts. Spot gold steadied at $3,867.97 an ounce, while December futures dipped 0.1% to $3,892.15/oz by 04:04 ET.
The U.S. government is expected to remain closed for at least three days, disrupting federal operations nationwide. Senate lawmakers appear to have made little progress toward consensus on a spending bill. A prolonged shutdown could harm the economy by interrupting essential services, while Trump’s threats to fire additional federal workers may further pressure the labor market.
Lithium Americas Corp stock price
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