U.S. equities scaled fresh peaks on Thursday as Wall Street shrugged off the ongoing government shutdown and rode another wave of investor enthusiasm fueled by the meteoric rise of artificial intelligence stocks. The major stock indexes, led by the Dow Jones Industrial Average, S&P 500, and the tech-heavy Nasdaq Composite, each closed at record highs, underscoring the market’s resilience in the face of political turmoil and mixed economic signals.

AI Momentum Powers Market Gains

The latest stock rally comes at a time when optimism surrounding artificial intelligence continues to boost investor sentiment. OpenAI’s recently completed employee share sale set the company’s valuation at a staggering $500 billion, unseating Elon Musk’s SpaceX as the world’s most valuable privately-held startup. The news ignited surging demand for shares of AI chipmakers, with Nvidia climbing to a record high, joined by gains in AMD, Broadcom, Samsung Electronics, and SK Hynix, following their deepening partnerships with leading AI developers.

In Thursday’s trading, the Nasdaq climbed 0.4% and the S&P 500 added 0.1%, both notching new all-time closing highs. The Dow Jones Industrial Average was up 0.2%. The positive momentum continued a trend that saw the S&P 500 close above the milestone 6,700 mark for the first time ever earlier in the week. Nvidia’s share price reached an all-time intraday high of $190, with optimism around AI chip demand easing investor jitters over the company’s massive $100 billion investment in OpenAI.

OpenAI’s $500 Billion Valuation Sends Shockwaves

The remarkable boost in AI stocks is attributed in large part to OpenAI’s record valuation. The company’s sale of about $6.6 billion of employee shares led to the new valuation, reflecting voracious appetite for generative AI platforms and underscoring the pace at which the sector is attracting capital. OpenAI’s latest advances include the release of its video generation model, Sora, and new strategic partnerships with Samsung and SK Hynix to address growing global demand for high-performance AI chips.

With OpenAI now the world’s most valuable startup, investors are watching closely for signs of an AI market bubble. However, for now, the significant capital inflows and broad adoption of AI technologies from enterprise and consumer segments continue to provide support across the tech sector.

AI Drives Chip Rally Around the Globe

The global chip sector also joined the rally. SK Hynix, a major supplier of high-bandwidth memory chips for AI applications, saw its stock rise 9% after unveiling a deal with OpenAI to supply chips for the firm’s ‘Stargate’ data center project. Samsung’s shares climbed 3%. U.S. counterparts like Advanced Micro Devices (AMD) and Broadcom posted gains of 3% and 2% respectively. The strong performance highlights how surging demand for AI hardware is reverberating through global supply chains.

Bitcoin, Gold, and Other Markets See Volatility

Elsewhere, the crypto sector extended its 2025 rally as Bitcoin moved above $121,000, gaining over 3% on Thursday and up 29% year-to-date. The continued positive trend into October marks the traditional ‘Uptober’, a seasonably strong period for cryptocurrencies.

Gold took a momentary breather after a monster rally throughout 2025, trading at record levels near $4,000 per ounce as investors hedged against political uncertainty and the risk of protracted government dysfunction. According to State Street Investment Management, there is a 75% probability gold will sustain its ascent past the $4,000 threshold in coming months, although some pullback is expected during typically slower winter months for gold ETFs. Year-to-date, gold futures are up roughly 48% – a remarkable return, reflecting macro uncertainty and robust demand from central banks and investors alike.

Oil prices remained under pressure, with West Texas Intermediate sliding 2% to hover near $60 per barrel, as concerns over oversupply grew on rumors of an OPEC+ plan to boost output.

Government Shutdown Drags On, Data Disruptions Mount

Despite the bullish market action, the U.S. has entered a second week of government shutdown, causing significant delays in the release of federal economic data including job statistics and inflation numbers, which investors and policymakers rely on to gauge economic health. As a result, greater emphasis has been placed on private sector reports. Notable among these was the Challenger, Gray & Christmas survey indicating U.S. hiring plans at their lowest since 2009, even as layoffs dropped – evidence of a ‘low hire, low fire’ labor market as private employers become more cautious.

The uncertain backdrop complicated the Federal Reserve’s outlook, as policymakers have signaled that cracks in the labor market could weigh heavily in their next interest rate decision, now scheduled for late October. Private data has bolstered near-consensus expectations on Wall Street that the Fed will move to cut rates at its next meeting, even as official government data is delayed.

Corporate Updates: Tesla, FICO, and Berkshire Hathaway

In corporate news, Tesla reported blowout third-quarter deliveries, surpassing analyst forecasts in a late surge as buyers rushed to claim federal tax credits before their scheduled expiration. However, Tesla stock turned lower during the session on concerns about sales momentum after incentives end.

Shares of Fair Isaac (FICO) soared following the announcement that it would begin offering its credit scores directly to mortgage lenders, bypassing the big three credit bureaus. The move sent competitors TransUnion and Equifax tumbling, highlighting the volatility of the fintech and mortgage services sector.

Meanwhile, Berkshire Hathaway, led by Warren Buffett, revealed its largest deal in years with the purchase of Occidental Petroleum’s OxyChem division for $9.7 billion, underscoring continued M&A activity even as economic clouds loom.

Cloud Rivals Turn Up the Heat on Amazon

Amazon, long buoyed by the performance of its AWS cloud business, continued to face mounting competition from Microsoft and Oracle, whose aggressive moves in cloud infrastructure are eroding AWS’ dominant market share. As a result, Amazon shares underperformed some tech peers, reflecting both strategic challenges and sector rotation into AI-adjacent hardware and software stocks.

Outlook

Despite headwinds from Washington and signs of a cooling labor market, the powerful momentum from AI innovation and related equities has propelled U.S. markets to record highs. With traditional economic data delayed, private indicators and corporate performance are moving to center stage in investor decision-making. While the risk of an AI bubble and uncertainty over government funding persist, the immediate outlook on Wall Street remains bullish, as technology and AI-focused firms continue to drive returns amid a transforming economic landscape.