US open: Wall Street opens higher as AI rally offsets shutdown unease
By Iain Gilbert
Date: Friday 03 Oct 2025
(Sharecast News) - US stocks were in the green early on Friday after major indices closed at fresh highs in the previous session, buoyed by strength in AI-linked names that appeared to outweigh concerns over the ongoing government shutdown.
As of 1440 BST, the Dow Jones Industrial Average was up 0.54% at 46,769.45, while the S&P 500 advanced 0.26% to 6,732.63 and the Nasdaq Composite came out of the gate 0.13% firmer at 22,874.17.
The Dow opened 249.73 points higher on Friday, extending the blue-chip's record-setting rally despite concerns surrounding the Federal Government's shutdown.
The shutdown, now in its third day, has added to investor unease around macroeconomic and policy risks, inflationary pressures, and signs of labour market softening. While past shutdowns have had limited market impact, the duration of the current impasse remains a key focus.
Treasury secretary Scott Bessent warned on Thursday that the lapse in funding could result in "a hit to the GDP, a hit to growth and a hit to working America", while Donald Trump said Democrats had handed him an "unprecedented opportunity" to cut federal agencies. The Congressional Budget Office estimates around 750,000 federal workers will be furloughed daily.
The shutdown has also triggered a data blackout, with the Labor Department suspending most activity, including today's all-important non-farm payrolls report, leaving the Federal Reserve with less visibility ahead of its October policy meeting.
The standoff began after lawmakers failed to reach a funding agreement by Tuesday's deadline. Democrats have held firm on demands to include an extension of healthcare tax credits in the spending bill, prompting retaliation from Trump and senior Republicans.
On the macro front, S&P Global's September composite and services PMIs will be released at 1445 BST, while the Institute for Supply Management's services PMI will follow at 1500 BST.
No major corporate earnings were slated for release on Friday.
Reporting by Iain Gilbert at Sharecast.com
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