U.S. Stocks Mixed as Investors Await Government Reopening Deal
U.S. stocks traded mixed on Wednesday for the second consecutive day, as investors rotated out of tech stocks and into blue-chip names ahead of an expected deal to end the longest-ever federal government shutdown.
At 11:09 AM ET (14:35 GMT), the Dow Jones Industrial Average rose 343 points (0.7%), while the S&P 500 dipped 8 points (0.1%) and the NASDAQ Composite slid 139 points (0.6%).
Lawmakers Move Closer to Ending Shutdown
Lawmakers in the U.S. House of Representatives are expected to vote this week on a compromise bill that would end the record-long government shutdown. The U.S. Senate approved the measure earlier this week, securing federal funding until January 30, and the House’s Republican majority is likely to pass it before President Donald Trump signs it into law.
The government’s reopening would also restore the release of key economic data, including the monthly jobs report, which has been delayed during the shutdown. These indicators are crucial for investors and the Federal Reserve, helping gauge the health of the U.S. economy and guide interest rate decisions.
With official data missing for weeks, uncertainty around the Fed’s December policy meeting has grown. Members of the Federal Open Market Committee (FOMC) reportedly remain divided on another potential rate cut, following two 25-basis-point reductions in October and September.
According to CME FedWatch, markets now price a 61.9% chance of a 25-basis-point rate cut at the December 10–11 meeting, up from 57.8% the day before.
Corporate Highlights: Cisco, AMD, Chevron, and Alphabet
On the earnings front, investors are watching Cisco Systems (NASDAQ: CSCO), which will report results after the close. The company has benefited from the AI-driven cloud investment boom, boosting demand for its networking hardware.
AMD (NASDAQ: AMD) shares gained after the chipmaker unveiled long-term AI growth targets at its first financial analyst day in three years.
Chevron (NYSE: CVX) stock also climbed after announcing plans to grow free cash flow by over 10% annually through 2030, while reducing capital expenditures and increasing oil and gas output.
Meanwhile, Alphabet (NASDAQ: GOOGL) shares rose after the tech giant announced a €5.5 billion ($6.4 billion) investment in Germany to expand its infrastructure and data center capacity across Europe.
Oil Prices Fall as Traders Assess Supply Outlook
Oil prices retreated on Wednesday, erasing the previous session’s gains as traders digested the latest global supply forecasts.
Brent crude fell 2.1% to $63.82 per barrel, while U.S. West Texas Intermediate (WTI) dropped 2.2% to $59.68. Both benchmarks gained more than 1.5% on Tuesday, supported by optimism that the government reopening could boost travel and fuel demand ahead of the holiday season.
The International Energy Agency (IEA) projected in its World Energy Outlook that oil and gas demand could keep rising until 2050, reversing its earlier view that global oil demand would peak this decade. The IEA’s revised forecast now factors in current policies rather than unmet climate pledges.
Separately, OPEC+ said in its latest report that global oil supply is expected to match demand next year, citing higher output among its members and allies, including Russia. Since April, OPEC+ has raised production by about 2.9 million barrels per day, or 2.7% of global supply, but plans to pause hikes in early 2026 amid concerns of a potential oversupply.
