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The prospect of ending the longest US government shutdown in history set the tone for US markets. At mid‑morning in New York, the S&P 500 index remained unchanged near 6,851 as traders awaited a House vote on legislation to fund the government. The Dow Jones Industrial Average climbed about 0.77%, while the tech‑heavy NASDAQ 100 edged 0.03% lower.
Investors focus on the resumption of official economic data once the shutdown ends. With many releases delayed, the markets have relied on private data for clues about labor and inflation trends. Analysts noted that past shutdown resolutions typically lifted the S&P 500, but they warned that the absence of data could complicate the Federal Reserve’s rate‑setting decisions.
Despite the uncertain backdrop, artificial‑intelligence‑related companies continued to attract attention. Advanced Micro Devices (AMD) announced that it expects annual data‑center chip revenue to reach $100 billion within five years. The company forecasted an increase of approximately 35% in its business and about 60% in its data-centre segment, attributed to high demand for AI processors. These estimates triggered a rise in AMD shares and highlighted the central importance of AI hardware for future profits.
Additionally, US manufacturers are also repositioning supply chains amid geopolitical tensions. General Motors has ordered thousands of suppliers to remove Chinese parts from their products, with some components required to be replaced by 2027. The directive aims to boost resilience as the company navigates potential US-China trade frictions.
Toyota, meanwhile, has begun production at its $13.9 billion North Carolina battery plant and announced plans to invest $10 billion over five years in US manufacturing. The facility will eventually produce 30 GWh of batteries each year and employ around 5,000 workers, expanding Toyota’s total US investment beyond $60 billion.
Global strategists at Goldman Sachs advise investors to look beyond the US market over the next decade. Peter Oppenheimer and his team forecast that the S&P 500 will return about 6.5% annually over the next ten years, one of the weakest projections among major regions.
On the other hand, emerging markets are expected to deliver annual returns near 10.9%, supported by strong earnings growth in China and India. Asia excluding Japan is projected to return roughly 10.3%, while Japan itself could see gains of 8.2%. The strategists argue that lofty US valuations and a convergence in earnings growth make international diversification crucial.
US stocks have lagged global peers this year, with the MSCI All‑Country World Index excluding the United States rising far more than the S&P 500. Analysts caution that factors that lifted US equities in the past, such as tax cuts, high margins, and low interest rates, are less likely to support returns in the future.
AMD: The chipmaker expects its data‑center chip revenue to hit $100 billion within five years, driven by AI demand.
Anthropic: Plans to spend $50 billion on data centers in Texas and New York, creating hundreds of permanent jobs.
Chevron: Will build natural‑gas plants supplying up to 4 GW of power to data centers, aiming to reduce energy costs.
Toyota: Started operations at a $13.9 billion battery plant in North Carolina and will invest $10 billion over five years in US manufacturing.
General Motors: Instructed suppliers to eliminate Chinese components by 2027 to strengthen supply‑chain resilience.
Visa: Launched a pilot allowing businesses to pre‑fund international payments with stablecoins instead of local currencies, leveraging regulatory clarity from the Genius Act.
Circle Internet Group: Reported higher quarterly profit due to increased USDC circulation; however, shares fell 5% as investors questioned the sustainability of its high valuation.
Overall, the corporate actions highlight how technology, energy and manufacturing companies are realigning their services to grow amid changing macroeconomic factors and accelerating advancements in AI.
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