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US stock futures rose on Monday morning as the federal government shutdown entered another week, with equities poised to build on a strong run that has pushed major indexes to fresh record highs.
Dow Jones Industrial Average futures (YM=F) edged up roughly, 0.2%, while those on the S&P 500 (ES=F) gained 0.3%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) led the way higher, up 0.4%.
The modest moves follow an upbeat week for the market. The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) each logged their fourth weekly gain in five, climbing 1.1% and 1.3%, respectively. The Dow (^DJI) advanced 1.1% for its third positive week in the past four.
Investors have largely looked past Washington gridlock after Congress failed again to reach a funding deal, extending the government shutdown and delaying key economic releases — starting with Friday’s jobs report.
“There’s a certain amount of nihilism,” Steve Sosnick, chief strategist at Interactive Brokers, told Yahoo Finance. “All news is good news, and no news matters. By not getting this [jobs report], that’s one less impediment in the market’s relentless rise.”
Even without fresh data, investors will get insights into the Federal Reserve’s thinking this week. Fed Governor Stephen Miran is set to speak Wednesday, followed by Chair Jerome Powell on Thursday.
Data from non-government sources will highlight the week, with no immediate end in sight to the shutdown. The University of Michigan’s consumer sentiment report for October looks likely to be the major release.
Meanwhile, third-quarter earnings start trickling in, with results from PepsiCo (PEP), Delta Air Lines (DAL), and Levi Strauss (LEVI) on this week’s docket.
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Nvidia partner Hon Hai’s sales rise 11% in boost for AI outlook
Bloomberg reports:
Nvidia Corp.’s (NVDA) major server production partner Hon Hai Precision Industry Co. (HNHPF, 2317.TW) reported 11% growth in quarterly sales, signaling healthy demand for the chips and servers needed to develop artificial intelligence.
The Taiwanese company known also as Foxconn reported revenue of NT$2.06 trillion ($67.6 billion) for the three months to September, generally in line with analysts’ projections. It also projected a rise in sales this quarter from the previous three months, citing strong AI demand.
Hon Hai’s results may lend weight to bets on the sustainability of a post-ChatGPT boom in AI infrastructure construction that’s swept up big tech firms like Meta Platforms Inc. (META) and startups including OpenAI (OPAI.PVT). Globally, investors have poured capital into the suppliers of that rollout, from chipmakers and networking firms to companies like Hon Hai that make servers to house Nvidia chips. Still, some investors have warned that valuations are unsustainable until AI services truly go mainstream.
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Gold approaches $4,000 in record-setting run buoyed by government shutdown
Bloomberg reports:
