US stock futures leaned higher on Monday as the federal government shutdown entered another week, eyeing a return to a strong rally that has pushed major indexes to fresh record highs.
Dow Jones Industrial Average futures (YM=F) nudged up 0.1%, while those on the S&P 500 (ES=F) gained 0.3%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) led the way higher, up roughly 0.5%.
The modest moves follow an upbeat week for the market. The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) each logged their fourth weekly gain in five, climbing 1.1% and 1.3%, respectively. The Dow (^DJI) advanced 1.1% for its third positive week in the past four.
Investors have largely looked past Washington gridlock after Congress failed again to reach a funding deal, extending the government shutdown and delaying key economic releases — starting with Friday’s jobs report.
“There’s a certain amount of nihilism,” Steve Sosnick, chief strategist at Interactive Brokers, told Yahoo Finance. “All news is good news, and no news matters. By not getting this [jobs report], that’s one less impediment in the market’s relentless rise.”
Even without fresh data, investors will get insights into the Federal Reserve’s thinking this week. Fed Governor Stephen Miran is set to speak Wednesday, followed by Chair Jerome Powell on Thursday.
Data from non-government sources will take a rare leading role, with no immediate end in sight to the shutdown. The University of Michigan’s consumer sentiment report for October looks the likely highlight in coming days.
Meanwhile, third-quarter earnings start trickling in, with results from PepsiCo (PEP), Delta Air Lines (DAL), and Levi Strauss (LEVI) on the docket this week.
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Tesla stock pops after EV maker teases Tuesday event
Shares in Tesla (TSLA) rose over 2% in premarket after the Elon Musk-led EV maker teased that a new product could be launched on Tuesday.
The hints came in posts to X on Sunday by Tesla, which reported record quarterly deliveries last week as US buyers rushed to snag an expiring tax credit.
But the automaker’s sales momentum has faltered this year, leading to hopes for a new, cheaper Tesla model to revive the market.
Reuters reports:
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Premarket trending tickers: Micron, OpenAI and UiPath
Here’s a look at some of the top stocks trending in premarket trading:
Micron (MU) stock rose 3% before the bell on Monday after Morgan Stanley upgraded the chipmaker from Equalweight to Overweight, raising its price target to $220.00 from $160.00.
OpenAI’s (OPAI.PVT) value has gone up 149% this year after the startup announced a flurry of deals and an instant buy option in ChatGPT, sending shares of Etsy (ETSY) and Shopify (SHOP) up.
UiPath (PATH) stock rose 10% in premarket trading on Monday. The company announced last month it had several new partnerships with Nvidia (NVDA), Alphabet (GOOG), Snowflake (SNOW), and OpenAI (OPAI.PVT).
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France’s stock benchmark sinks after PM’s sudden resignation
France’s stock benchmark the CAC 40 (^FCHI) slumped, down around 2% at one point on the heels of Prime Minister Sebastien Lecornu’s surprise resignation on Monday.
The euro (EURUSD=X) weakened against the dollar, while the 10-year yield on French government bonds jumped as the chances rose of fresh elections to resolve the political crisis.
Bloomberg reports:
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Japan stocks soar to record after surprise Takaichi win in race for next leader
Japanese shares surged to a record high on Monday, as Sanae Takaichi was all but confirmed to become the country’s next prime minister.
Meanwhile, the yen and long-term bond prices tumbled after Takaichi was chosen as leader of the LDP, Japan’s ruling party, as traders bet on a revival in big spending and loose monetary policy.
Reuters reports:
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Nvidia partner Hon Hai’s sales rise 11% in boost for AI outlook
Bloomberg reports:
Nvidia Corp.’s (NVDA) major server production partner Hon Hai Precision Industry Co. (HNHPF, 2317.TW) reported 11% growth in quarterly sales, signaling healthy demand for the chips and servers needed to develop artificial intelligence.
The Taiwanese company known also as Foxconn reported revenue of NT$2.06 trillion ($67.6 billion) for the three months to September, generally in line with analysts’ projections. It also projected a rise in sales this quarter from the previous three months, citing strong AI demand.
Hon Hai’s results may lend weight to bets on the sustainability of a post-ChatGPT boom in AI infrastructure construction that’s swept up big tech firms like Meta Platforms Inc. (META) and startups including OpenAI (OPAI.PVT). Globally, investors have poured capital into the suppliers of that rollout, from chipmakers and networking firms to companies like Hon Hai that make servers to house Nvidia chips. Still, some investors have warned that valuations are unsustainable until AI services truly go mainstream.
Read more here.
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Gold approaches $4,000 in record-setting run buoyed by government shutdown
Bloomberg reports:
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