AMD Earnings Boost AI Chip Stocks as US Government Shutdown Nears End

TLDR

• AMD CEO’s strong AI sales outlook drove chip stocks higher with AMD jumping over 5% in premarket trading
• US House vote scheduled for 7 p.m. ET could end the longest government shutdown in US history
• Government reopening would release delayed economic data including September’s jobs report as soon as next week
• Federal Reserve officials including newest appointee Stephen Miran set to speak Wednesday with focus on December rate decision
• Markets pricing in 61.9% chance of 25 basis point Fed rate cut at December 10-11 meeting

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US stock futures climbed Wednesday morning as chip stocks rallied on upbeat AI earnings. The tech sector gained momentum after AMD’s CEO presented strong sales projections driven by artificial intelligence demand.

AMD shares jumped over 5% in premarket trading following the earnings announcement. Nvidia also moved higher by over 1% as semiconductor stocks recovered from recent losses. The positive sentiment spread across tech-linked market gauges.

Advanced Micro Devices, Inc., AMD

Foxconn, a key Nvidia partner, forecast continued growth in the data center market. German chipmaker Infineon echoed similar predictions about sustained demand. These reports reinforced optimism about AI infrastructure spending.

Dow Jones Industrial Average futures rose 0.3% after the index closed at a record high Tuesday. S&P 500 futures added roughly 0.4% while Nasdaq 100 futures increased nearly 0.6%. The mixed session showed selective strength in different market sectors.

E-Mini S&P 500 Dec 25 (ES=F)

The House of Representatives prepared for a critical vote that could end the government shutdown. The final ballot was scheduled for around 7 p.m. ET on Wednesday. President Trump has backed the measure, which increases the likelihood of quick passage.

The Senate already approved a bill to fund federal agencies through January 30. The House’s Republican majority suggests strong chances for approval. Trump’s signature could follow shortly after House passage.

Economic Data Release

A government reopening would trigger the release of delayed economic reports. September’s jobs report could arrive as soon as next week after weeks of delay. Wall Street has relied on private data to assess economic conditions during the shutdown.

The data blackout complicated the Federal Reserve’s assessment of the economy. Fed officials remain divided on whether to cut interest rates at their December meeting. The central bank has already reduced rates by 25 basis points at its October and September meetings.

Markets currently price in a 61.9% probability of a 25 basis point rate cut on December 10-11. This represents an increase from 57.8% the previous day. Investor expectations continue to shift based on available economic information.

Fed Officials to Speak

Several Federal Reserve officials are scheduled to speak Wednesday. Stephen Miran, Trump’s newest appointee, will make remarks. Christopher Waller, reportedly under consideration for the next Fed chair position, is also on the speaking schedule.

Investors will listen for clues about the Fed’s December policy decision. The comments could provide insight into how officials view current economic conditions. Rate expectations may shift based on their statements.

Earnings season continues at a reduced pace with most S&P 500 companies having reported. Cisco Systems will announce results after Wednesday’s market close. The networking equipment provider has benefited from increased AI infrastructure spending.

Circle, a cryptocurrency company, posted a quarterly profit that beat expectations driven by stablecoin growth. The company’s shares fell despite the earnings beat. Oklo stock edged higher even as the nuclear power startup’s third-quarter loss widened from the previous year.

Oil prices retreated Wednesday after gaining over 1.5% the previous session. Brent crude dropped 0.9% to $64.58 per barrel. West Texas Intermediate crude fell 1% to $60.46 per barrel as traders took profits following Tuesday’s rally.

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