Daily Stock Market Update: AMD Soars As Shutdown Ends
The government is open again and the stock market has potential to climb high this week as a result.
Quick overview
- The longest U.S. government shutdown ended with President Trump signing the budget bill, leading to expectations of a stock market surge.
- Tech stocks, particularly Advanced Micro Devices (AMD), saw significant gains, although AMD experienced a slight pullback in premarket trading.
- The Senate reached a compromise to pass the budget bill, allowing government operations to resume and providing backpay to employees.
- While two major indices rose, the stock market showed mixed results for tech stocks amid concerns over inflation data and trade issues.
The longest U.S. government shutdown in history finally came to an end on Wednesday night as President Donald Trump signed the budget bill, and stocks are expected to climb today.
With the shutdown finally over, the stock market can get back to its October highs, and tech stocks are likely where the big gains will be at. That is certainly the case with Advanced Micro Devices (AMD) which added 9% to its stock value on Wednesday evening.
AMD’s price pulled back slightly on Thursday in premarket trading, losing just over 1%, but the stock remains elevated and close to an all-time high at $255.75 per share at the time of writing. The question now is whether the fears over AI’s longevity and profitability will start to subside or if they will persist through the rest of the week.
How the Shutdown Ended
For the Senate to finally come to some agreement that allowed the budget bill to be passed, both sides had to make concessions. Or Democrats, it meant that they had to give in on healthcare issues for the moment and let this bill move through without getting the Obamacare tax credits that they had insisted on. For the Republican side, there was a concession made to revisit the healthcare topic very soon so long as the current bill passed.
Now, food stamps can be paid out, government employees can receive their backpay, and laid off employees can get back to work. The wheels of government can begin to move freely again, well oiled by a hefty budget bill. However, the monthly reports for labor and inflation statistics for the shutdown period may not be published now that the window has passed for those.
The Stock Market Surges
Two of the three major indices climbed Thursday morning as the market opened. On the good news of the shutdown ending, the market can return to previous highs, but a lack of clear inflation data may make investors move cautiously.
The Dow Jones added 0.68% as it opened for the day, and the S&P 500 moved up 0.06%. The Nasdaq dropped 0.26%, however, with tech stocks offering a mixed bag.
Microsoft (MSFT) gained 0.48% on Thursday, but Google (GOOGL) declined by 1.58%. There was no consistent pattern on Thursday morning for tech stocks, proving that the anticipated rally was not happening, at least for now. The looming threat of tariffs, a Chinese trade lockout, and fears over the AI market are all holding tech stocks back at the moment.
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