U.S. stock futures pointed to a steady start on Tuesday, with investors showing little conviction after Monday’s rally pushed major indexes to new highs.
Caution prevailed as traders kept a close eye on Washington’s latest budget gridlock, where lawmakers once again failed to reach a deal on a short-term funding bill. The ongoing government shutdown, now stretching into another week, has begun to delay key U.S. economic data, leaving markets with fewer signals to gauge the health of the economy.
Focus is shifting to speeches from several Federal Reserve officials scheduled throughout the week, as investors look for guidance on the outlook for interest rates amid growing expectations of another rate cut later this month.
On Monday, U.S. equities closed mostly higher following a mixed session on Friday. The Nasdaq Composite jumped 161.81 points, or 0.7%, to 22,941.67, and the S&P 500 gained 24.49 points, or 0.4%, to 6,740.28, both notching new record closes. The Dow Jones Industrial Average, however, edged down 63.31 points, or 0.1%, to 46,694.97.
The day’s strength was largely fueled by a rally in semiconductor stocks, with the Philadelphia Semiconductor Index soaring 2.9% to an all-time high. Advanced Micro Devices (NASDAQ:AMD) surged 23.7% after unveiling a 6-gigawatt partnership with OpenAI to power its next-generation AI computing systems using AMD Instinct GPUs.
Under the agreement, AMD issued OpenAI a warrant for up to 160 million shares of its common stock, which will vest as specific performance milestones are met.
Gold miners also advanced alongside a strong rebound in gold prices, as the NYSE Arca Gold Bugs Index climbed 1.9%, while software stocks extended gains. Conversely, housing and commercial real estate shares lagged behind.
Despite political uncertainty and reduced data visibility, market optimism remains intact, with traders largely downplaying the economic impact of the government shutdown for now.
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