Wall Street Searches for Balance as AMD Steals the Spotlight

A Day That Managed to Shine on One Side and Scrape on the Other

Some trading days feel like standing on a dance floor with two songs playing at once. Wednesday was exactly that. With the end of the U.S. government shutdown finally approaching, market sentiment showed signs of relief.

The Dow Jones (+0.7%) cheerfully marched toward a fresh record, while the Nasdaq (-0.3%) stumbled as technology stocks slid again. I couldn’t help but notice the irony: the same megacap tech names that had powered the market for months suddenly turned into the weak links.

Government Shutdown Nears Its End: Back to Real Data

Optimism wasn’t unfounded. The House of Representatives was preparing to vote on the budget proposal that should end the longest government shutdown in U.S. history. The Senate has already given the green light, now it’s simply awaiting final approval.

That means we can soon rely on official macro data again. The long-delayed September jobs report is expected next week, and it will instantly become a key gauge for investors trying to forecast the Federal Reserve’s next moves on interest rates.

Meanwhile, markets are pricing in a 63% probability of a rate cut in December. Not a guarantee, but certainly on the table.

Macro Moves: Oil Sinks, Dollar Quiet

On the macro front, news was relatively subdued.

• EUR/USD traded at 1.1587.

• The WTI crude oil price slid sharply: –4% to $58.49, after an OPEC report pointed to rising inventories and potentially weakening global demand.

For investors exposed to energy stocks: yes, this remains a pressure point.

AMD Dominates the Headlines with Explosive Ambitions

If one company commanded all the attention, it was Advanced Micro Devices (AMD | +9%). During its analyst day, CEO Lisa Su unveiled an ambitious growth roadmap — even by AMD’s standards.

The highlights:

• Average annual revenue growth above 35% over the next 3–5 years.

• Datacenter revenue +80% per year on average.

• Operating margin around 35%.

And perhaps the boldest statement: Su expects the AI-chip market to reach $1 trillion by 2030.

The stock surged, and frankly, the timing couldn’t have been better for a market desperately looking for new leadership outside Nvidia. AMD delivered exactly that.

Tech Under Pressure: Nvidia, Palantir, Tesla & Meta Slide

But despite AMD’s fireworks, the broader tech sector remained under pressure:

• Nvidia (NVDA | +0.33%) barely eked out a gain.

• Palantir (PLTR | –3.56%), Oracle (ORCL | –3.88%), Meta (META | –2.88%), and Tesla (TSLA | –2.05%) continued to drop.

Concerns about stretched AI valuations are causing investors to tap the brakes and honestly, a bit of cooling-off isn’t the end of the world. It’s just not very pleasant when you’re holding the stocks.

Cisco Delivers and Raises Its Outlook

Cisco (CSCO | +7.46% after hours) posted results that met expectations for revenue and adjusted earnings in the first quarter of its fiscal year. More importantly, management raised guidance for the current quarter and full year. The stock jumped in after-hours trading.

Oklo: Rising R&D Costs, Remarkably Patient Investors

Small-cap Oklo (OKLO | +6.67%) reported a widening loss due to increased R&D spending for its plant development. Surprisingly, investors reacted positively, perhaps recognizing that in the niche world of advanced nuclear energy, growth requires upfront pain.

Final Thoughts: A Market That Wants to Move Forward but Needs a Breather

Despite the uneven action, I see a market in a healthy transition phase. The narrative is slowly shifting from AI hype to fundamental strength and credible long-term outlooks. That’s not a bad thing.

AMD proved that a compelling story still gets rewarded, even in a market that feels overstimulated by AI superlatives. Over the next few days, the tone will be driven by Washington (shutdown resolution) and the Fed (policy expectations).

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Kristoff - ChartMill

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