US pre-open: Dow to top record 48,000 level as futures rise

(Sharecast News) - US stock futures were showing gains in pre-market trade on Wednesday, with the Dow set to test new highs following Tuesday's record close, as sentiment continues to be lifted by an expected to government shutdown. The Dow, which finished the previous session at 47,927.96, was trading 0.1% higher by 0608 in New York, on track to top the 48,000 level for the first time in history.

The S&P 500 and Nasdaq were also up 0.3% and 0.6% ahead of the opening bell, respectively.

Stocks have mostly moved higher in recent days - though ongoing nerves about tech valuations have limited upside for the Nasdaq - after the US Senate passed a spending bill to fund the government until the end of January. The package now moves to the GOP-controlled House of Representatives for a final vote on Wednesday, before Donald Trump is expected to sign it into effect.

"The prospect of an end to the US government shutdown later today is fuelling demand for risk assets," said Kathleen Brooks, research director at XTB, with a flurry of postponed economic data now expected to be released in the next week or so.

"Some analysts expect the delayed CPI and labour market data to be released next week, which will give us a read of the underlying strength of the US economy. Investors appear to be positioned for this data to be risk-positive, however, proof is needed, which means that the delayed US data releases are high stakes for financial markets."

Data from ADP on Tuesday revealed that the private sector shed an average of 11,250 jobs per week in the four weeks to 25 October, while a survey from NFIB showed that small business confidence declined more than expected.

In equity news, shares in AMD were rising strongly after the chip giant gave a bullish outlook, forecasting a 60% jump in data centre revenues over the next three to five years, driven by what it called "insatiable" AI demand. AMD profits are also expected to triple by 2030.

Sector peers Broadcom and Nvidia were also expected to rebound after falling sharply the previous session.