AI Optimism and Tech Surge Drive U.S. Markets to Record Highs Amidst Government Shutdown

Market Overview - The U.S. stock market showed resilience on October 2, 2025, with major indexes closing at or near record highs despite a government shutdown [1][3] - Investor confidence was driven by strong demand for artificial intelligence (AI) innovations and expectations of future interest rate cuts by the Federal Reserve [1][3] Market Indexes Performance - The S&P 500 closed at 6,721.20, a 0.14% increase, marking a new all-time high [2] - The Nasdaq Composite finished at 22,831.05, up 0.33%, also achieving a new all-time high [2] - The Dow Jones Industrial Average closed at 46,547.37, posting a 0.23% gain [2] Economic Data and Events - The ongoing government shutdown has delayed key economic data releases, including the jobs report, complicating Federal Reserve decision-making [4][5] - Upcoming economic indicators include the Services PMI and ISM Non-Manufacturing PMI, which will provide insights into the service sector [5] Sector Performance Technology Sector - Nvidia (NVDA) shares rose 1.59% to an all-time high of $188.59, driven by robust AI demand [7] - Microsoft (MSFT) increased by 1.45%, benefiting from strong growth in cloud services and AI initiatives [7] - The global chip sector saw gains following a partnership announcement between OpenAI and South Korean firms, with OpenAI valued at $500 billion [8] - Advanced Micro Devices (AMD) and Broadcom (AVGO) gained approximately 3.5% and 2% respectively, driven by demand for data center and AI chips [9] Automotive Sector - Tesla (TSLA) shares declined 3.5% despite better-than-expected delivery figures [10] - Stellantis (STLA) saw an 8% increase in stock price after reporting a 6% rise in U.S. sales for Q3, with a notable 16% jump in September sales [10] Other Notable Company News - Nike (NKE) shares rose 1.56% after reporting Q1 fiscal 2026 revenues of $11.72 billion, surpassing estimates [11] - Conagra Brands, Inc. (CAG) shares jumped 5.4% after reporting adjusted earnings that beat consensus estimates [12] - Fair Isaac (FICO) rallied 20% after introducing a new pricing option for mortgage lenders, negatively impacting major credit agencies [13]