Stock futures were mostly unchanged Sunday night as the U.S. government remained shut down. This comes after a week where the stock market reached record highs.
Stock market updates Index Highlights
- The S&P 500 closed at 6,740.28, up 0.36%, marking another record high.
- Nasdaq Composite climbed 0.71% to 22,941.67, also hitting a record closing level.
- The Dow Jones Industrial Average dipped 0.14%, losing 63.31 points to 46,694.97, pressured by shares of Sherwin-Williams and Home Depot.
- The Russell 2000 index settled at 2,486.36, up 0.4%, maintaining gains after recently topping 2,500 for the first time.[1][2][3]
Drivers of Gains: AMD and Comerica Deals
- AMD shares surged nearly 34% after announcing a multi-year deal to supply AI chips to OpenAI. The agreement includes an option for OpenAI to acquire up to 10% ownership in AMD through warrants. The deal is expected to generate tens of billions in annual revenue starting in late 2026, validating AMD as a key competitor to Nvidia in AI chip technology.[4][5][6][7]
- Fifth Third Bancorp announced an all-stock $10.9 billion acquisition of Comerica. The merger will create the ninth-largest U.S. bank by assets, with a significant geographic footprint across the Midwest and West Coast. Comerica shares rallied nearly 14%, while Fifth Third shares declined slightly on the news. The deal is expected to close by Q1 2026 pending regulatory approvals.[8][9][10]
Investor Sentiment amid Government Shutdown
- Despite the ongoing U.S. government shutdown starting October 1, investors remain focused on the positive earnings outlook and potential Federal Reserve interest rate cuts. The shutdown has delayed key economic reports, including the September jobs report, but market optimism persists.[11][12][13]
- Analysts expect Federal Reserve rate cuts around 25 basis points in upcoming meetings to stimulate economic growth amid signs of weakening labor markets. The next Fed policy meeting is scheduled for October 28-29.[14][15][16]
Stock market updates Outlook
- The stock market has been buoyed by optimism around AI technology deployment and accelerating mergers and acquisitions, particularly in regional banking.
- The S&P 500 and Nasdaq continue their record-setting trends, reflecting investor confidence despite political and economic uncertainties.[17][3]
