U.S. stock futures jump today as AI optimism outshines 3-day government shutdown – Dow, S&P 500, Nasdaq all in green on Tesla, Nvidia, AMD rally

U.S. stock futures rose Friday morning as renewed optimism in AI stocks outweighed concerns about the ongoing government shutdown. Futures for the major indices are up approximately as follows: Nasdaq 100 futures by 0.27-0.3%, S&P 500 futures by 0.25-0.3%, and Dow Jones Industrial Average futures by about 0.2-0.22% early in the trading session.

At 5:07 a.m. ET, Dow e-minis were up 104 points, or 0.22%. S&P 500 e-minis rose 18 points, or 0.27%. Nasdaq 100 e-minis added 72.5 points, or 0.29%.

Tech strength and hopes for an interest rate cut are keeping markets on track, despite Washington’s gridlock.
The market is buoyed by strong AI sector enthusiasm, including OpenAI’s rising valuation and a $6.6 billion share sale, while investors overlook the data blackout caused by the stalled release of the September jobs report due to the shutdown. The major U.S. indexes all hit record highs Thursday and are poised for weekly gains. Technology stocks, led by Nvidia, AMD, and Intel, continue to lead the charge.

In individual stock news, Tesla’s shares rose 1.8% in premarket trading after a 5% drop the previous day. USA Rare Earth jumped 7.4% following CEO comments about ongoing talks with the White House.

U.S. Treasury yields edged up to around 4.10%. WTI crude oil futures hovered near $61 per barrel, while gold prices rose to $3,859.69.The government shutdown risks continuing uncertainty, but so far investor focus remains on AI growth and potential Federal Reserve interest rate cuts later this month. Treasury yields are near 4.10%, and crude oil and gold prices are modestly up.

Wall Street indexes hit record highs

All three major Wall Street indexes reached record closing highs on Thursday. The Nasdaq rose 0.39%, the Dow gained 0.17%, and the S&P 500 added 0.06%. If current levels hold, weekly gains are on track. The S&P 500 is up 1.1%, Nasdaq 1.6%, and Dow 0.6% for the week.

AI optimism continues to drive tech stocks higher. OpenAI’s recent $500 billion valuation has renewed investor interest.

• Nvidia (NVDA) rose 0.9% to a 52-week high
• AMD (AMD) gained 3.49%
• Intel (INTC) jumped 3.78%

Tesla (TSLA) rebounded 1.8% in premarket trading after a 5% drop Thursday. USA Rare Earth (USAR) surged 7.4% following White House discussions.

Investors will monitor several key reports and events Friday:

• Institute for Supply Management (ISM) non-manufacturing PMI for September
• Final S&P Global services and composite PMIs for September

Fed officials will also speak, including:

• New York Fed President John Williams in Amsterdam
• Dallas Fed President Lorie Logan
• Fed Vice Chair Philip Jefferson in Philadelphia

These updates may influence expectations for the Fed’s October rate decision.

Commodities and bond yields

• U.S. 10-year Treasury yield hovered near 4.10%
• WTI crude oil traded around $61.02 per barrel
• Gold Spot U.S. dollar price reached $3,885 per ounce

Global markets mixed

Asia-Pacific markets traded mixed Friday:

• Japan’s Nikkei rose 1.85%
• Topix gained 1.35%, led by Hitachi (+10.26%)
• Hong Kong’s Hang Seng fell 0.54%
• Chinese markets remained closed for National Day

European stocks opened higher, extending gains from Thursday amid ongoing developments in Washington.

Notable stock movers

Dragonfly Energy (DFLI) gained in premarket trading after surging 78.6% Thursday. The U.S. battery maker received funding from Nevada Tech Hub to support the lithium battery supply chain.

Hitachi shares jumped after announcing a global AI partnership with OpenAI to build AI infrastructure and data centers.