Stocks Rise Before the Open on Fed Rate-Cut Hopes and AI Optimism

Market Performance - Wall Street's three main equity benchmarks closed higher, with the S&P 500 and Nasdaq 100 reaching new record highs [1] - AES Corp. surged over +16% after reports of a $38 billion acquisition deal by BlackRock's Global Infrastructure Partners [1] - Pharmaceutical stocks rallied, with Biogen climbing more than +10% and AstraZeneca rising over +9% following Pfizer's deal with the White House [1] - Nike advanced more than +6% after better-than-expected FQ1 results [1] - Corteva slumped over -9% after announcing a split of its seed and pesticide businesses [1] Economic Indicators - The ADP National Employment report showed a decline of -32K in U.S. private nonfarm payrolls for September, the largest drop in 2.5 years [6] - The U.S. ISM manufacturing index rose to a 7-month high of 49.1, exceeding expectations [6] - The Eurozone's unemployment rate unexpectedly rose to 6.3% in August, higher than the expected 6.2% [11] Federal Reserve Insights - The absence of official data during the U.S. government shutdown complicates economic interpretation for policymakers [2] - Rate futures indicate a 100% chance of a 25 basis point rate cut at the upcoming Fed meeting [7] - Fed Governor Lisa Cook will remain at the central bank until at least January following a Supreme Court notice [8] International Developments - OpenAI's valuation reached $500 billion after stock sales, boosting AI-related optimism and impacting chip stocks globally [4] - South Korea's Samsung Electronics and SK Hynix signed agreements to supply chips for OpenAI's Stargate project [4][10] - Japan's Nikkei 225 Index closed higher, driven by gains in pharmaceutical and chip-related stocks [12]