Wall Street Climbs Amid Government Shutdown Optimism and AMD's AI Forecast Boost

Wall Street's main indexes climbed as optimism around the end of the U.S. government shutdown and positive forecasts from AMD lifted investor sentiment. The Dow reached a record high, driven by gains in financials and technology stocks amidst cautious evaluations of ongoing AI market valuations.

In a bright start to trading, Wall Street's major indexes soared, with the Dow Jones Industrial Average hitting a record high. Investors were buoyed by the prospect of an end to the longest U.S. government shutdown and enthusiastic earnings forecasts from tech giant Advanced Micro Devices (AMD).

Tuesday's stir was initially caused by a significant sell-off of Nvidia shares by SoftBank Group and a cut in revenue forecasts from CoreWeave, prompting scrutiny over the tech sector's current valuation frenzy. Yet, on Wednesday, the markets rebounded, bolstered by improvements in the semiconductor index and information technology shares.

As the major indexes rose—Dow by 0.77%, S&P 500 by 0.26%, and Nasdaq by 0.03%—investors remained watchful for upcoming government actions, including a pivotal House vote to reopen federal agencies. Traders also focused on broader economic impacts, eyeing upcoming Federal Reserve meetings and employment data indicators.

(With inputs from agencies.)