Dow futures inched a bit higher on Wednesday, up around 0.1% or 80 points after the Dow Jones Industrial Average hit a record high the day before.
The good vibes came from growing optimism over a possible US government funding deal and solid showings from big names like Walmart and McDonald’s.
Still, not everything was smooth sailing.
AI-related tech stocks kept sliding as investors started questioning whether those recent huge gains were really justified.
And with some softer US labor data out, traders are staying cautious and watching closely for more economic clues later this week.
5 things to know before Wall Street opens
1. After 42 long days, it looks like the US government shutdown is finally coming to an end.
The House is getting ready to vote on a funding deal that’s already cleared the Senate, and once it passes, President Trump is expected to sign it into law.
The agreement would keep the government funded through January 30 and get federal agencies back up and running.
It should also help ease those flight delays and cancellations that have been piling up because of airport congestion.
Plus, it includes back pay for federal workers and extends food subsidies through September 2026.
2. Foxconn, the major supplier behind giants like Nvidia and Apple, posted a strong quarter as its profit jumped 17% to about $1.89 billion, beating expectations.
The boost came largely from soaring demand for AI servers, even as overall revenue held steady at around $66.3 billion.
The company’s been busy expanding its AI server production across India, Mexico, and Texas, and it’s also moving some iPhone assembly from China to India.
While Foxconn still sees electric vehicles as a big opportunity for the future, that part of the business has faced some bumps along the way.
For now, its shift toward building AI infrastructure seems to be paying off.
3. SoftBank just made a big move as it sold off its entire $5.8 billion stake in Nvidia. That’s a bit of a surprise, especially since Nvidia is still leading the pack when it comes to AI chips.
But this isn’t about losing faith in Nvidia.
Instead, SoftBank is shifting gears, redirecting that capital into broader AI bets, like investing in OpenAI and building massive infrastructure projects such as its Stargate data center.
The sale, which actually happened in October but was only just revealed, shows SoftBank’s strategy to go “all in” on the next phase of AI, not just the chips, but the entire ecosystem that’s going to power the technology’s future.
4. The White House is feeling optimistic again as officials now expect the US economy to bounce back to a healthy 3% to 4% growth rate by early 2026, following the slowdown caused by the recent government shutdown.
According to White House economic adviser Kevin Hassett, the shutdown knocked about 1 to 1.5 percentage points off growth last year, but he says some of that lost momentum should return, even if not all of it.
There are still some hurdles, such as softer consumer spending, sluggish global trade, and lingering inflation, but a pickup in business investment could help balance things out and get the economy back on track as early as the first quarter of next year.
5. Asian markets had a mostly upbeat day on Wednesday, helped by growing optimism that the US government shutdown might finally be ending.
Japan’s Nikkei 225 added 0.4% to hit 51,063, even though SoftBank shares tumbled after news it had sold off its Nvidia stake.
Over in South Korea, the Kospi jumped 1.1%, Hong Kong’s Hang Seng climbed 0.8%, while Australia’s S&P/ASX 200 dipped a modest 0.2%.
Across Europe, markets were also in good spirits.
The STOXX 600 rose 0.6% to reach fresh highs, boosted by relief over the US shutdown situation and solid corporate earnings.
Financials and mining stocks led the charge, although investors stayed somewhat cautious ahead of new US economic data and Fed remarks.
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