US Stocks at Record Highs

US stocks rose on Wednesday as the Dow Jones Industrial Average targeted a new record. Strong earnings reports boosted optimism around artificial intelligence, while hopes strengthened that a prolonged government shutdown would come to an end.

The Dow Jones Industrial Average (%DJI) rose by 0.4% after Tuesday's record closing, giving investors hope. Meanwhile, the S&P 500 (%GSPC) and the technology-heavy Nasdaq Composite Index (%IXIC) both saw increases of approximately 0.2%. This positive momentum followed the announcement of artificial intelligence-powered sales forecasts by the CEO of Advanced Micro Devices (AMD).

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

The positive sentiment is further bolstered by an important House of Representatives vote scheduled for today. This vote could potentially end the longest government shutdown in US history. The results of the vote could likely be signed off quickly by President Trump.

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

On Wednesday, Federal Reserve officials including Stephen Miran and possible new chair nominee Christopher Waller will be present. Investors’ eyes are glued to clues regarding policy decisions from the Federal Reserve meeting in December.

As earnings season continues at a slower pace, the majority of S&P 500 companies have already reported. On Wednesday, Cisco Systems (CSCO) is expected to report after market close. Additionally, while cryptocurrency company Circle (CRCL) exceeded quarterly earnings due to stablecoin growth, its shares have seen a decline.

At market open, US stocks rose. The Dow Jones Index (%DJI) climbed 0.4%, moving towards a fresh peak following Tuesday's record close. The S&P 500 (%GSPC) and technology-focused Nasdaq Composite Index (%IXIC) also rose by over 0.2%. These widespread gains came after a mixed session for stocks yesterday.

Oil prices fell 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 would not peak until 2030 and would continue to rise until 2050. OPEC anticipates increases of 1.3 million barrels per day in 2025 and 1.38 million barrels per day in 2026.

OPEC+ countries agreed to increase daily output by 137,000 barrels in December but signaled no changes in rates during the first quarter. This suggests that the market is cautiously assessing the risk of oversupply. Alongside economic data and earnings reports, significant developments are occurring leading up to the upcoming COP30 climate change summit.