Gotrade Daily: Dow Hits Record as Funding Deal Nears
Markets rally as Washington edges closer to ending the 41-day shutdown.
The Dow surged to a record high on Tuesday, fueled by optimism that lawmakers in Washington are close to ending the 41-day U.S. government shutdown.
The Senate’s approval of a short-term funding bill late Monday set the stage for a potential House vote this week. A deal could reopen the government, restore key data releases, and lift confidence that’s been dampened for weeks.
As investors rotated from tech into health care, energy, and consumer staples, the Dow led gains with 26 of its 30 components closing higher. The S&P 500 inched up, while the Nasdaq slipped slightly as traders took profits on last week’s tech rebound.
Meanwhile, Nvidia fell nearly 3% after SoftBank sold its entire stake, signaling a pause in the AI trade’s momentum. Broadcom also edged lower, though both stocks remain up sharply year-to-date.
Many analysts see the potential deal as a key turning point. Historically, the S&P 500 has averaged a 2.7% gain in the month after a government reopening, according to CFRA Research.
📊 Market Wrap
🧠 Analyst Notes
💬 Market Highlights
AMD Eyes US$1 Trillion AI Market by 2030
AMD (AMD) doubled its AI data-center forecast to US$1 trillion by 2030, citing rapid adoption and growing GPU demand. CEO Lisa Su said the company aims for double-digit market share, with revenue growth averaging 35%+ annually. Shares rose 3% after hours on the strong outlook.
Occidental Cuts Debt and Hits Record Production
Occidental (OXY) completed the US$8 billion sale of OxyChem to reduce debt below US$15 billion, while reporting record output of 1.47 million barrels per day. The company plans to use proceeds for buybacks and high-return projects in the Permian Basin and Oman.
Microsoft Expands AI Infrastructure in Europe
Microsoft (MSFT) announced a US$10 billion investment in a large-scale AI data center in Portugal, built with NVIDIA, Start Campus, and Nscale. The project will expand Azure’s reach and promote sustainable AI infrastructure across Europe.
🏢 Earnings Watch
With markets finding momentum and Washington nearing a breakthrough, investors are regaining confidence heading into year-end.
Which stocks will benefit first from a reopening boost?
Disclaimer
Gotrade is the trading name of Gotrade Securities Inc., registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
