Wall Street Stays Near Records as Tech Stocks Surge Despite Shutdown/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks hovered close to record highs Thursday, lifted by tech and AI shares, even as Washington’s shutdown delayed key economic data. The Nasdaq led gains with chipmakers rising on OpenAI’s new $500 billion AI project. Investors remain focused on interest rates while shrugging off political turmoil.
Wall Street Records Quick Looks
- S&P 500: Rose 0.3%, near record high
- Dow Jones: Added 78 points (+0.2%) early Thursday
- Nasdaq: Gained 0.5%, heading toward a new record
- Shutdown impact: Jobless claims and monthly jobs data delayed
- Investor focus: Hopes Fed keeps cutting rates without recession risks
- AI boom: OpenAI’s $500B Stargate partnerships drive chip stocks higher
- Winners: AMD (+3.5%), Broadcom (+2.5%), Samsung (+3.5%), SK Hynix (+9.9%)
- Losers: Occidental Petroleum (-2.3%), TransUnion (-11.9%), Equifax (-10.2%), Experian (-3.6%)
- Global markets: Strong gains in Asia and Europe, especially Korea’s Kospi (+2.7%)
- Treasuries: 10-year yield dipped to 4.11%
Wall Street Stays Near Records as Tech Stocks Surge Despite Shutdown
Deep Look
NEW YORK — Wall Street hovered near record highs Thursday, as technology and AI-related stocks powered gains while investors largely shrugged off the ongoing U.S. government shutdown.
The S&P 500 rose 0.3%, just below its latest record, while the Dow Jones Industrial Average added 78 points (+0.2%) in early trading. The Nasdaq Composite advanced 0.5%, pushing toward a fresh all-time high.
Shutdown Stalls Key Reports — But Markets Unfazed
Normally, Thursdays bring Wall Street’s close reading of jobless claims. This week, however, that report was delayed due to the federal shutdown. Friday’s critical monthly jobs report is also unlikely to be released.
Despite the uncertainty, investors appear unconcerned. Shutdowns historically have minimal long-term impact on markets or the economy, even as President Donald Trump has threatened large-scale federal worker firings.
Instead, traders are fixated on whether the job market cools just enough to keep the Federal Reserve on track for rate cuts, without tipping the economy into recession.
AI Boom Drives Tech Surge
The day’s real catalyst was OpenAI’s announcement of $500 billion in partnerships with South Korean firms for its “Stargate” AI infrastructure project.
The ripple effects were immediate:
- Samsung Electronics jumped 3.5% in Seoul.
- SK Hynix soared nearly 10%.
- On Wall Street, AMD gained 3.5% and Broadcom rose 2.5%.
- Taiwan Semiconductor, whose stock trades in the U.S., climbed 1.2%.
Analysts say AI has been one of the biggest drivers of the market’s record-breaking run, alongside expectations for lower interest rates. But the sheer dominance of AI-related stocks has raised concerns of a potential bubble, echoing past tech frenzies.
Corporate Movers
Beyond tech, corporate announcements drove other notable stock swings:
- Occidental Petroleum (-2.3%) fell after selling its chemical unit, OxyChem, to Berkshire Hathaway for $9.7B, possibly Warren Buffett’s final large acquisition as CEO.
- Fair Isaac (FICO) soared 22.2% after unveiling a plan to allow lenders direct access to credit scores, cutting out the major bureaus.
- In response, TransUnion (-11.9%), Equifax (-10.2%), and Experian (-3.6%) tumbled.
Global Markets
Markets in Europe and Asia largely posted gains, fueled by tech optimism. South Korea’s Kospi index surged 2.7%, one of the strongest rallies worldwide. London’s FTSE 100 was mostly flat.
In the bond market, Treasury yields slipped slightly, with the 10-year yield easing to 4.11% from 4.12% the previous day.
Outlook
For now, Wall Street remains resilient. The government shutdown adds noise, but as long as the Fed continues signaling rate cuts and AI spending booms, investors seem content to keep driving stocks higher.
The next potential shock? Whether missing economic data — particularly Friday’s jobs report — shakes investor confidence in the weeks ahead.
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