Wall Street Climbs on AMD's AI Optimism and Potential Shutdown End

Wall Street futures rose as optimism grew over AMD's AI-driven revenue forecast and potential end to the U.S. government shutdown. AMD shares surged after predicting significant revenue growth from data center chips. Meanwhile, U.S. stocks faced pressure following SoftBank's Nvidia stake sale. As the shutdown's economic impact looms, an upcoming vote could restore government stability.

Wall Street futures saw upward movement on Wednesday, with investors buoyed by hopes for an end to the U.S. government shutdown and a positive earnings projection from Advanced Micro Devices (AMD) around artificial intelligence.

AMD experienced a 4.6% surge in premarket trading, as the semiconductor company announced expectations of $100 billion in annual data center chip revenue within five years, alongside a tripling of earnings. However, U.S. stocks initially felt pressure after SoftBank Group sold its stake in Nvidia, and a revised forecast from AI cloud services provider CoreWeave heightened valuation concerns among tech firms.

The Dow, S&P 500, and Nasdaq E-minis were modestly higher as House members returned to Washington to vote on a measure proposed to end the 42-day government shutdown. This development may potentially alleviate economic strain impacting areas like air travel and food subsidies. Federal Reserve Chair Daniela Hathorn notes an unlocking of the shutdown could further boost U.S. stocks.

(With inputs from agencies.)