US stock futures opened higher Monday as investors reacted positively to a major regional bank deal and a partnership between chipmaker AMD and OpenAI. The market gained momentum despite a government shutdown entering its second week.

Key Market Movements

• Dow Jones Industrial Average futures rose 93 points (0.2%).
• S&P 500 futures climbed 0.3%.
• Nasdaq-100 futures increased 0.6%.

The S&P 500 and Nasdaq Composite are building on recent gains, marking their fourth weekly advance in five weeks, up 1.1% and 1.3%, respectively. The Dow rose 1.1% for the third time in four weeks.

Bank Merger Boosts Regional Banking Sector

Shares of Comerica jumped 11% after Fifth Third Bancorp announced a $10.9 billion all-stock acquisition, forming the ninth-largest US bank by assets. The SPDR S&P Regional Banking ETF rose 1% on expectations of further mergers and acquisitions in the sector. Analysts see the deal as part of a broader M&A wave that could drive investor optimism in the coming months.

AMD Gains on OpenAI Partnership

AMD shares surged more than 20% after the company reached a partnership with OpenAI. Under the deal, OpenAI could receive a 10% stake in AMD via warrants, while AMD will supply certain graphics processing units over multiple years to support OpenAI’s AI initiatives, including ChatGPT.

Investors Overlook Government Shutdown

The ongoing government shutdown delayed key economic data releases, including the September jobs report. Despite this, analysts remain bullish. Tom Lee, head of research at Fundstrat, stated that stocks are likely to remain strong through the end of the year, with the S&P 500 potentially reaching 7,000 or higher. He advised investors to “buy the dip” if stocks show weakness.

Upcoming Federal Reserve Commentary

Market participants are also watching Federal Reserve officials for guidance. Fed Governor Stephen Miran is scheduled to speak on Wednesday, followed by Chair Jerome Powell on Thursday, providing further insight into monetary policy and economic conditions.