U.S. stocks opened slightly higher on Wednesday as investors balanced optimism around artificial intelligence (AI) with concerns over Oracle’s recent decline and the ongoing government shutdown, now in its second week.
The S&P 500 gained 0.2% at the open, while the Nasdaq Composite rose 0.4%. The Dow Jones Industrial Average added 65 points, or 0.1%. Nvidia shares were up more than 1%, helping offset broader market caution.
The previous session saw losses across major indexes, with the Dow falling 91.99 points (0.2%), the S&P 500 slipping 0.4%, and the Nasdaq down 0.7%. Oracle shares dropped 2.5% after reports indicated weaker-than-expected cloud margins and potential losses on deals renting Nvidia chips.
The development reignited debate over whether markets are entering an AI-driven bubble similar to the late 1990s dot-com boom. SoFi’s head of investment strategy, Liz Thomas, noted that while the current rally feels “euphoric,” the momentum may persist before a correction sets in.
Investors are also awaiting the Federal Reserve’s meeting minutes for cues on the central bank’s stance following a divided September session. Meanwhile, the prolonged government shutdown continues to linger, posing potential risks to market sentiment if extended further.
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