US indices open higher as AI momentum offsets government shutdown uncertainty

• US indices open slightly higher despite the ongoing federal government shutdown.
• Investors focus on the University of Michigan's consumer sentiment survey amid a lack of official data.
• Ongoing enthusiasm around Artificial Intelligence continues to support market momentum.

US stocks edge higher at the opening of Wall Street on Friday as investors look ahead to fresh consumer sentiment data and keep a close eye on developments in the Artificial Intelligence (AI) sector. The S&P 500 is up 0.20%, the Dow Jones Industrial Average (DJIA) gains 0.45%, while the Nasdaq 100 adds 0.17%.

The week remains dominated by the prolonged US government shutdown, now entering its tenth day, which has delayed the release of several key economic indicators. The lack of official data complicates the assessment of the economic cycle and clouds expectations for the Federal Reserve (Fed)'s next policy moves. After cutting rates by 25 basis points in September, the central bank signaled that further reductions may follow, but the ongoing budget deadlock makes the timing of these decisions increasingly uncertain.

In this context, markets are turning to alternative sources such as the University of Michigan survey, which will provide insight into consumer confidence and inflation expectations on Friday. These figures could offer a valuable snapshot of domestic demand at a time when the Fed lacks fresh economic benchmarks.

Meanwhile, the AI sector remains a key driver of market sentiment. Technology shares are supported by strong earnings from several industry leaders, including Nvidia (NVDA), which continues to climb after reaching a new all-time high earlier this week.

However, investors remain cautious, as political gridlock and the absence of economic data add to short-term volatility. Attention is also shifting toward the upcoming third-quarter earnings season, with major banks such as JPMorgan and Citigroup set to report next week.