Wall Street Rallies to Fresh Records on AI Optimism Despite Prolonged Government Shutdown

U.S. stock futures advanced on Friday after major indexes hit new records, with investors remaining focused on the promise of artificial intelligence even as the government shutdown entered its second day.

Futures linked to the Dow Jones Industrial Average (YM=F), S&P 500 (ES=F), and Nasdaq 100 (NQ=F) each gained about 0.2%. On Thursday, the Nasdaq Composite (^IXIC), S&P 500 (^GSPC), and Dow Jones Industrial Average (^DJI) all closed at record highs, buoyed by optimism after OpenAI’s valuation surged to $500 billion, cementing its position as the world’s most valuable startup.

Normally, Wall Street would be bracing for the release of the September jobs report, but the shutdown is expected to delay the data. The report had been highly anticipated, as Federal Reserve officials have pointed to labor market weakness as a key consideration for upcoming interest rate decisions.

Meanwhile, negotiations to end the shutdown remain stalled. Democrats insist on preserving healthcare subsidies as part of any funding deal, while Republicans refuse to address the issue until government operations resume. The Senate, which adjourned Thursday for Yom Kippur, is set to reconvene Friday. At the same time, President Trump has escalated threats to fire federal workers and pull funding from projects in Democratic-leaning states.