AI Optimism Support Fresh Highs On Wall Str

Barry Adams
03 Oct, 2025
New York City

U.S. indexes pointed higher and stretched deeper into record territory amid continued optimism about artificial intelligence-driven companies. 

The S&P 500 index edged up 0.3%, and the tech-heavy Nasdaq Composite gained 0.4% as the federal government shutdown entered the third day.

In the past, the federal government shutdowns have had limited impact on the U.S. economy and market levels; however, this time the economy is in a fragile condition amid a cooling labor market and inflation risks. 

In addition, the U.S. labor department will not release September's nonfarm payrolls on Friday because of the shutdown. 

Over the last three months, the AI-driven market rally has powered the narrow gains, as benchmark indexes scale new record highs.

For the week-to-date, the S&P 500 gained 1.1%, the Nasdaq Composite advanced 1.6%, and the Tollbooth Strategy Index gained 1.2%.

Across the Atlantic, benchmark indexes in France, Germany, and the U.K. extended weekly gains to over 2% and hovered near record highs. 

Japan's market indexes edged lower ahead of the LDP's leadership election on Saturday, and markets in India extended weekly gains to 0.4%, driven by the optimism surrounding the start of the Diwali holiday retail season. 

 

U.S. Stock Movers 

Applied Materials Inc. decreased 2.2% to $218.90 after the company said in a regulatory filing that new export restrictions will negatively impact revenue. 

The company said new export restrictions to China will reduce revenue in the fourth quarter by $110 million and in fiscal year 2026 by $600 million.

USA Rare Earth Inc. increased 9.5% to $24.98 after CEO Barbara Humpton hinted at a possible investment by the Trump administration in the company.