US stock futures took a breather on Tuesday after their latest record-setting run, as Wall Street weighed worries over the government shutdown against bright hopes for AI.
Dow Jones Industrial Average futures (YM=F) traded flat. Contracts on the S&P 500 (ES=F) and on the tech-heavy Nasdaq (NQ=F) were also little changed after fresh record high closes on Wall Street.
The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) scored their seventh win in a row on Monday, boosted by news of a multibillion-dollar deal between AMD (AMD) and OpenAI (OPAI.PVT) that sent the chip company’s stock rocketing higher.
Overall, the deal added fuel to the AI-based fire that has powered stocks’ bull-market run to records. Strategists are once again lifting their targets for the S&P 500, though much rests on the upcoming earnings season performance by Big Tech names.
Those results will take on even greater prominence than usual for markets during the US government shutdown. The longer the federal stoppage drags on, the more clouded the picture of the economy will become for investors as key data releases dry up — making it hard to divine the path of interest rates.
It has already delayed the September jobs report that was due Friday. Next week’s releases on consumer and producer inflation, crucial to the Federal Reserve’s decision making, could also be postponed.
That’s turned up the focus on the Fed officials set to speak this week. Trump-backed Governor Stephen Miran among those on Tuesday’s lineup, helping set the stage for Fed minutes on Wednesday.
Meanwhile, a crack in the Washington gridlock on a funding bill has emerged, after President Trump signaled he was open to negotiating with Democrats over the healthcare subsidies they want.
In corporates, Tesla (TSLA) is thought to be preparing a potential new Model Y launch on Tuesday, after teasing an event in a series of cryptic posts to social media. Shares in the Elon Musk-led EV maker hovered below the flatline in premarket, coming off a 5% stock gain on Monday.
LIVE 6 updates
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Good morning. Here’s what’s happening today.
Please note: Some US government economic data will not be released today due to the federal shutdown.
Economic data: Exports (August); Imports (August); Federal Reserve Bank of New York one-year inflation expectations (September); Consumer credit (August)
Earnings calendar: McCormick & Company (MKC)
Here are some of the biggest stories you may have missed overnight and early this morning:
The stakes of OpenAI’s dealmaking
Trilogy Metals stock spikes on US plan to take 10% stake
AI critics are ‘thinking too small,’ says AMD chief
Tesla expected to unveil lower-cost Model Y in push to reignite sales
OpenAI sent these stocks soaring with mere mentions
Novo Nordisk cuts jobs on production line at key US plant
World Bank cuts South Asia outlook on Trump tariffs to India
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Novo Nordisk cuts production line jobs at key plant in US
Novo Nordisk (NVO) has laid off dozens of employees at its largest US manufacturing site. The Wegovy-maker is making cuts in a major restructuring under new CEO Mike Doustdar.
Reuters reports:
Read more here.
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Premarket trending tickers: AMD, Clarivate and Ford
Here’s a look at some of the top stocks trending in premarket trading:
AMD (AMD) stocks rose 4% in premarket trading on Tuesday following the announcement of a multibillion-dollar partnership with OpenAI (OPAI.PVT), one of the largest infrastructure deals to date.
Clarivate Plc (CLVT) rose 8% before the bell on Tuesday after announcing that Windbond Electronics Corporation has selected and implemented IPfolio, a cloud-based intellectual property (IP) management platform from Clarivate.
Ford (F) stock fell 1% before the bell following a late-night fire at a key part of a New York aluminum plant. Its absence is going to disrupt business at Ford Motor and other automakers for months to come.
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Tesla confirms plans to roll out lower-cost Model Y as part of sales revival push
Tesla (TSLA) is planning to unveil a more affordable version of its best-selling Model Y SUV, as the electric vehicle maker seeks to reverse falling sales amid rising competition.
Reuters reports:
Read more here.
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Trilogy Metals stock skyrockets on US plan to take 10% stake
Shares of Trilogy Metals (TMQ) roughly tripled in price on Wall Street, up around 180% in premarket trading.
Late Monday, the White House said the US is taking a 10% stake in and has warrants for another 7.5% of the Canadian minerals exploration company. The purchase is part of a $35.6 million investment to gain access to mineral deposits in Alaska.
Bloomberg reports:
Read more here.
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Gold pushes towards $4,000 an ounce as insecurity takes hold
Bloomberg reports:
Read more here.
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