
U.S. Stock futures fell slightly Wednesday as investors weighed the impact of the government shutdown, which began after the Senate failed to pass a temporary spending bill. The shutdown threatens to furlough 750,000 federal workers and could delay key economic data, including Friday’s nonfarm payrolls report, critical ahead of the Fed’s October meeting.
Markets are watching the shutdown’s duration. U.S. Indices ended September with strong gains. The S&P 500 rose 7.8% in Q3. Meanwhile, Nike shares jumped over 4% after beating earnings and revenue expectations.
Nvidia shares hit a record high Tuesday, rising nearly 3% and pushing its market cap above $4.5 trillion, up 39% year-to-date. The rally is fueled by Nvidia’s dominance in AI infrastructure, with products making up about 70% of new AI data center spending. OpenAI plans to give Nvidia up to a $100B equity stake and build $500B worth of GPU-powered data centers, while Meta, Google, and others also ramp up AI investments. Analysts at Citi raised Nvidia’s price target to $210, citing surging AI infrastructure demand. Nvidia’s performance this year trails only Broadcom among megacap peers.
Asia-Pacific markets traded mixed Wednesday as Wall Street gains offset concerns about the U.S. government shutdown. Gold hit a fresh record at $3,875 per ounce. In Japan, the Bank of Japan Q3 Tankan survey showed business sentiment among large manufacturers rising to +14 (slightly below expectations), while non-manufacturing stayed at +34. The Nikkei 225 fell 1.16% and the Topix dropped 1.71%.
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