US Stocks at Record Highs

US stocks rallied on Wednesday, with the Dow Jones Industrial Average hitting a day aimed at a new record. Strong earnings reports increased optimism around artificial intelligence, while hopes for the end of a prolonged government shutdown also strengthened.

The Dow Jones Industrial Average (%DJI) rose by 0.4% after Tuesday's record close, giving investors hope. Meanwhile, the S&P 500 (%GSPC) and tech-heavy Nasdaq Composite Index (%IXIC) also climbed about 0.2%. This positive momentum followed the announcement of AI-driven sales forecasts by Advanced Micro Devices (AMD) CEO.

Nvidia (NVDA) refreshed optimism in the AI space by boosting growth expectations in the data center area through its partnership with Foxconn (2317.TW, HNHPF). AMD shares rose 7% in early trading, while Nvidia responded with an increase of less than 1%.

The positive atmosphere is further buoyed by a significant vote in the House of Representatives scheduled for today. This vote could bring an end to the longest government shutdown in US history. The outcome of the vote could be quickly signed by President Trump.

Government reopening would allow for the release of stalled economic data; the employment report for September could be released next week. Wall Street is eager for official economic insights as it attempts to gauge the Federal Reserve's next move regarding interest rates based on recent private data.

On Wednesday, Federal Reserve officials including Stephen Miran and potential new presidential candidate Christopher Waller will be present. Investors are looking for clues regarding policy decisions at the Federal Reserve meeting scheduled for December.

As earnings season continues at a slow pace, most S&P 500 companies have reported. Cisco Systems (CSCO) is expected to report after the market closes on Wednesday. Additionally, cryptocurrency company Circle (CRCL) experienced a decline in its shares, although it surpassed quarterly earnings with stablecoin growth.

At market open, US stocks rose. The Dow Jones Industrial Average (%DJI) is advancing towards a fresh peak with a 0.4% gain, following Tuesday's record close. The S&P 500 (%GSPC) and tech-focused Nasdaq Composite Index (%IXIC) also rose by more than 0.2%. These broad gains came after a split session for stocks yesterday.

Oil prices dropped on Wednesday as the Organization of the Petroleum Exporting Countries (OPEC) did not change its global oil demand forecast for October. The International Energy Agency (IEA) stated that oil and gas demand will not peak until 2030 and will continue to rise until 2050. OPEC forecasts an increase of 1.3 million barrels per day in 2025 and 1.38 million barrels per day in 2026.

OPEC+ countries decided to increase production by 137,000 barrels per day in December but signaled that there would be no change in rates in the first quarter. This suggests that the market is cautiously assessing overproduction. Alongside economic data and earnings reports, significant developments are unfolding ahead of the upcoming COP30 climate change summit.