Dow Jones futures rise as tech stocks led gains on AI momentum

• Dow Jones futures climb as AI-driven gains outweigh worries about the US government shutdown.
• US stock markets received support from the increased likelihood of further Fed rate cuts.
• Market optimism grows on OpenAI's $6.6B sale, $500B valuation, and partnership with South Korean chipmakers.

Dow Jones futures edge up by 0.20% to reach 46,900 during European hours on Friday, ahead of the regular session opening in the United States (US). However, the S&P 500 futures rise 0.25% to trade above 6,750, while Nasdaq 100 futures gain 0.30% to trade near 25,200.

US index futures gain ground after Wall Street posted fresh highs during overnight trading. The AI-driven rally overshadows concerns about the ongoing US government shutdown. However, traders may adopt caution as the government shutdown is likely to delay the release of key US macro including the US September Nonfarm Payrolls (NFP) report. The US ISM Services PMI and the final S&P Global Services PMI reports are due later on Friday.

On Thursday's regular session, the Dow Jones added 0.06%, the S&P 500 rose 0.17%, and the Nasdaq Composite advanced 0.39%. Stocks from the tech sector led gains on AI momentum, with Nvidia rising 0.9%, AMD advancing 3.5%, and Intel jumping 3.8%. Market sentiment was further boosted by OpenAI's $6.6 billion share sale, valuing the firm at $500 billion, along with news of a landmark partnership with South Korean tech conglomerates Samsung and SK.

US stock markets received support as recent weaker data US labor market boosted bets on further Federal Reserve (Fed) rate cuts. The CME FedWatch Tool suggests that markets are now pricing in a 97% chance of a Fed rate cut in October and a 91% possibility of another reduction in December.