U.S. stock futures were pointing to a positive start on Monday, with major indexes expected to move higher following last Friday’s mixed performance.
Technology shares appeared poised to drive the early momentum, as Nasdaq 100 futures climbed 0.9 percent ahead of the opening bell.
Advanced Micro Devices (NASDAQ:AMD) led the pre-market rally, soaring 35.7 percent after announcing a major partnership with OpenAI. The agreement involves a 6-gigawatt deal to support OpenAI’s next-generation artificial intelligence infrastructure using multiple generations of AMD Instinct GPUs. In addition, AMD granted OpenAI a warrant for up to 160 million shares of its common stock, set to vest once certain performance milestones are met.
Investor sentiment also got a boost from renewed merger-and-acquisition activity. Fifth Third Bancorp (NASDAQ:FITB) revealed plans to acquire Comerica (NYSE:CMA) in an all-stock transaction valued at $10.9 billion. Comerica shares surged 14.1 percent in early trading, as shareholders are set to receive 1.8663 Fifth Third shares per Comerica share, equivalent to $82.88 each, based on Friday’s closing price for Fifth Third.
Despite ongoing concerns about the U.S. government shutdown, which has now entered its sixth day, traders remain focused on corporate developments and earnings prospects. Progress toward a short-term funding agreement remains limited, but the standoff has not yet dented market optimism.
On Friday, stocks opened strong but lost steam later in the session. The Nasdaq slipped 63.54 points (0.3%) to 22,780.51, while the S&P 500 edged up 0.44 points to 6,715.79, and the Dow Jones Industrial Average rose 238.56 points (0.5%) to 46,758.28.
Even with the late pullback, all three benchmarks posted solid weekly advances — the Nasdaq rose 1.3 percent, and both the Dow and S&P 500 gained 1.1 percent, marking six straight sessions of record closes for the Dow and S&P. Strong performances from UnitedHealth (NYSE:UNH), Travelers (NYSE:TRV), and Caterpillar (NYSE:CAT) contributed to the rally.
Meanwhile, several high-profile tech names weighed on the Nasdaq. Palantir (NASDAQ:PLTR) dropped 7.5 percent after Reuters reported that a U.S. Army memo identified major “security vulnerabilities” in its battlefield communications modernization project.
Tesla (NASDAQ:TSLA) and Nvidia (NASDAQ:NVDA) also retreated — Tesla by 1.4 percent and Nvidia by 0.7 percent — with Nvidia slipping after hitting a record close the previous day.
The government shutdown has delayed the release of crucial economic data, including the monthly jobs report, adding to the uncertainty surrounding the economic outlook.
However, weak private data have bolstered expectations that the Federal Reserve will stay on its interest rate–cutting path. Earlier reports from ADP showed a surprise decline in private-sector employment, and the Institute for Supply Management (ISM) said its services PMI fell to 50.0 in September, down from 52.0 in August and below the expected 51.7 — signaling stagnation in the sector.
Sector performance remained mixed at the end of the week. Healthcare stocks led gains, with the Dow Jones Health Care Index up 1.1 percent, hitting its best level in more than six months. Telecom, banking, and airline stocks also advanced, while retail and semiconductor shares weakened.
Advanced Micro Devices stock price
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