Stocks Gain on Strength in Chipmakers

Market Overview - The ongoing US government shutdown is causing delays in the release of key economic reports, including payroll and inflation data, which could lead to an increase in jobless claims and a rise in the unemployment rate to 4.7% [2] - Higher bond yields are limiting stock gains, with the 10-year T-note yield rising to 4.14% [3] - Stock indexes are mostly higher, with the Nasdaq 100 reaching a new all-time high, driven by optimism in the AI sector and corporate earnings expectations [4][5] Company Developments - Advanced Micro Devices (AMD) surged over 28% after announcing a deal with OpenAI for AI infrastructure, significantly boosting investor interest in chipmakers [4][12] - Cryptocurrency-exposed stocks rallied as Bitcoin prices rose above $125,000, benefiting companies like Coinbase Global and Galaxy Digital [13] - Comerica (CMA) increased by over 15% following an acquisition agreement by Fifth Third Bancorp for approximately $10.9 billion in stock [14] Earnings Expectations - More than 22% of S&P 500 companies have provided guidance for Q3 earnings that are expected to exceed analysts' expectations, although overall Q3 profits are projected to rise by only 7.2%, the smallest increase in two years [7] Interest Rates and Economic Indicators - The market is anticipating a 95% chance of a 25 basis point rate cut at the next FOMC meeting on October 28-29 [8] - European government bond yields are rising, with the 10-year German bund yield at 2.713% and the UK gilt yield at 4.723% [10]