US equities are in a promising surge, with the Dow Jones Industrial Average, S&P 500, and NASDAQ 100 all closing at fresh records on October 1. The S&P 500 futures edged up 0.1% and NASDAQ 100 futures rose 0.2% in early Wednesday London trading, extending the rally. Investors continued to focus on prospects for Federal Reserve rate cuts despite the ongoing government shutdown.
Corporate developments added fuel to the rally. Intel Corp. shares advanced after reports from Semafor revealed the company is in talks to add Advanced Micro Devices Inc. as a customer for its chip manufacturing business. The news underscored Intel’s efforts to expand its foundry operations. At the same time, Siemens AG announced it is exploring the spinoff of a large part of its majority stake in Siemens Healthineers AG through a relatively untested structure, while Renault SA entered discussions with China’s Chery Automobile Co. about partnering on carmaking and sales in South America.
The momentum in US stocks aligned with optimism in global markets, where technology and healthcare continued to lead gains. Healthcare stocks, in particular, benefited from reduced political risk following an agreement on US drug pricing policy.
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The stock rally gained further strength from developments in Asia. OpenAI signed initial agreements with Samsung Electronics Co. and SK Hynix Inc. to supply chips and other equipment for its Stargate project, a large-scale data center initiative. The deals pushed Samsung shares up 4.3% and SK Hynix up 10%, lifting South Korea’s Kospi index to an all-time high.
The wider region tracked higher, with the MSCI Asia Pacific Index climbing 1.1%, Japan’s Topix rising 0.1%, and Australia’s S&P/ASX 200 gaining 1.2%. Hong Kong’s Hang Seng index added 1.6%. Analysts highlighted that demand for chips and servers to support AI expansion remains a strong driver of global equity markets.
OpenAI also completed a share sale that valued the company at $500 billion, cementing its position as the world’s most valuable startup. Chief Executive Sam Altman is continuing his Asia tour, with meetings scheduled with Taiwan Semiconductor Manufacturing Co. and Hon Hai Precision Industry Co.
US Treasury yields held firm after private payroll data showed a 32,000 decline in September, raising expectations for further Fed rate cuts. The 10-year yield hovered near 4.11%. Japan’s 10-year yield ticked up to 1.66%, while Australia’s fell to 4.34%.
In commodities, gold steadied after reaching successive record highs around $3,895 an ounce. Oil prices showed mixed moves, with West Texas Intermediate crude rising 0.5% to $62.11 a barrel while Brent crude slipped to $65.50.
Currency markets remained calm. The Bloomberg Dollar Spot Index was unchanged. The euro traded at $1.1735, the yen at 147.17 per dollar, and the British pound at $1.3477. The offshore yuan held at 7.1323 per dollar. In digital assets, bitcoin climbed 0.7% to $118,452, while ether rose 1.2% to $4,386.