FX.co ★ Stock market on October 3: S&P 500 and NASDAQ extend gains

Yesterday, US stock indices closed higher. The S&P 500 rose by 0.06%, while the Nasdaq 100 added 0.39%. The industrial Dow Jones jumped by 0.17%.

The indices have now risen for six consecutive days, as optimism around artificial intelligence has propelled stocks and futures to new all-time highs. Investors are enthusiastically responding to the opportunities that AI presents, seeing it as a catalyst for productivity growth and the creation of new business models.

The technology sector, particularly companies developing and implementing AI, is at the forefront of this rally, demonstrating solid growth and drawing substantial investment. However, despite the prevailing optimism, some analysts caution against excessive enthusiasm, noting that the real impact of AI on the economy may fall short of already elevated expectations. It is important to keep in mind that the adoption of new technologies always involves risks and requires time for adaptation and integration into existing processes.

The MSCI World Index rose by 0.1%, and the Asian technology index reached a record high. Shares of Hitachi Ltd. increased thanks to a partnership with OpenAI, and Fujitsu Ltd. shares jumped by more than 5% on a partnership with Nvidia Corp. Asian indices gained 0.4%. Futures point to further gains for the S&P 500 and Nasdaq 100 after both underlying indices closed at record highs. European equities also appear positioned for a stronger open.

According to Pepperstone Group, the S&P 500 and the Nasdaq continue to set new records, with risks related to the US government shutdown failing to dent the market's risk appetite. Funds keep flowing into high-beta sectors, experts note.

In other market segments, the yen weakened against the dollar after Bank of Japan Governor Kazuo Ueda kept the door open for an accommodative monetary policy, reiterating the bank's long-standing stance on interest rates. Ueda refrained from giving any clear signals about the prospects for interest rate hikes at the board meeting scheduled for the end of this month.

Gold posted its seventh consecutive weekly gain, while oil recorded its largest weekly decline since late June ahead of the upcoming OPEC+ meeting.

During yesterday's speech, Finance Minister Scott Bessent spoke of a significant breakthrough expected in the next round of trade negotiations with China. These comments came in the context of the Trump administration's measures to support American farmers affected by the reduction in Chinese purchases.

Traders also faced a temporary data vacuum after the weekly jobless claims report, usually published on Thursdays, was delayed due to the government shutdown. Employment data from the Bureau of Labor Statistics for the nonfarm sector, which was also scheduled for release today, is likely to be delayed as well.

As for the technical outlook for the S&P 500, the main task for buyers today will be to break through the nearest resistance level of $6,743. This would help drive further growth and open the way for a move to the new level at $6,756. No less important for bulls will be maintaining control over $6,769, which would further bolster buyer positions. In case of a downward movement amid declining risk appetite, buyers must assert themselves in the area of $6,727. A break below this level would quickly push the instrument back to $6,711 and open the way to $6,697.