US equities opened higher on Friday as investors weighed renewed optimism in the Artificial Intelligence (AI) sector against ongoing concerns surrounding the prolonged US government shutdown. The S&P 500 gained 0.20%, the Dow Jones Industrial Average (DJIA) rose 0.45%, and the Nasdaq 100 edged up 0.17% at the opening bell.
Market focus shifts amid data blackout
The partial government shutdown, now entering its tenth day, continues to disrupt the release of key economic indicators, complicating the market’s ability to assess growth trends and inflation dynamics.
The absence of official data adds uncertainty to the Federal Reserve (Fed)’s policy outlook following September’s 25-basis-point rate cut. While the Fed has signaled that additional easing remains on the table, the ongoing fiscal stalemate makes the timing of further rate adjustments increasingly difficult to predict.
Consumer sentiment data in focus
With government agencies unable to publish scheduled reports, investors are turning to alternative indicators for clues on the economy’s health. The University of Michigan’s consumer sentiment survey, due later Friday, is expected to shed light on household confidence and inflation expectations—key inputs for assessing domestic demand at a time when the Fed lacks fresh macroeconomic data.
AI sector drives positive sentiment
The technology sector remains a major source of support for US equities, buoyed by continued enthusiasm for AI-related stocks. Nvidia (NVDA) led the advance, extending gains after hitting a new all-time high earlier this week.
Strong earnings from other tech leaders have also helped sustain investor optimism, reinforcing the AI-driven momentum that has underpinned the market throughout 2025.
Cautious optimism ahead of earnings season
Despite Friday’s upbeat start, sentiment remains cautious as political gridlock and limited economic visibility contribute to short-term volatility. Investors are now turning their attention to the upcoming third-quarter earnings season, with major financial institutions including JPMorgan and Citigroup set to report results next week—offering a critical gauge of corporate resilience amid fiscal uncertainty.
