Global stock markets reached new highs driven by optimism around the AI boom and hopes for U.S. interest rate cuts, despite the ongoing U.S. government shutdown. The shutdown complicates the Fed’s data-dependent policymaking, limiting visibility on labor market and inflation data critical for future rate decisions.

OpenAI hits a $500 billion valuation after a share sale, raising questions about the AI boom potentially being a bubble. Oil prices are plummeting due to oversupply concerns, with OPEC+ considering a production increase. Dollar’s share of global reserves dips, but adjusted figures show steady dollar dominance.

The U.S. government shutdown may delay key economic data releases, impacting the Fed’s rate outlook. Market uncertainty grows as the shutdown affects critical labor and inflation data. Economists warn of declining data quality, leading to skewed results and more revisions. Market movements will hinge on upcoming economic data releases and central bank speeches.

Read more at Yahoo Finance: AI, Fed bets sweep aside shutdown jitters