Stocks Supported by AI Optimism and Lower Bond Yields

Market Overview - The ongoing US government shutdown is impacting market sentiment and delaying key economic reports, with estimates suggesting that 640,000 federal workers will be furloughed, potentially raising the unemployment rate to 4.7% [2] - Stock indexes are experiencing gains, driven by strength in semiconductor and AI infrastructure stocks, with optimism surrounding growth in the AI sector contributing to bullish sentiment [4][5] - Rising corporate earnings expectations are noted, with over 22% of S&P 500 companies providing guidance for Q3 earnings that are expected to exceed analysts' expectations, although Q3 profits are projected to rise by only 7.2%, the smallest increase in two years [7] Gold and Precious Metals - Gold prices have surged above $4,000 an ounce, reaching a new record high, which has positively influenced gold mining stocks, with companies like Anglogold Ashanti Plc and Coeur Mining seeing gains of over 2% [1][13] Interest Rates and Economic Indicators - The market is anticipating a 95% chance of a 25 basis point rate cut at the next FOMC meeting scheduled for October 28-29, influenced by the ongoing government shutdown and its potential economic repercussions [8][9] - The average 30-year fixed mortgage rate has decreased to 6.43%, down from 6.46% the previous week, indicating a slight easing in mortgage costs [3] Corporate Developments - Notable stock movements include Dell Technologies and Advanced Micro Devices, which have seen increases of over 4% and 3% respectively, reflecting positive market sentiment towards tech stocks [12] - Confluent is reportedly exploring a sale after receiving acquisition interest, leading to an increase of over 11% in its stock price [14]