What a Week!
Markets hit records while the government stays shut down. Gold just did something it's never done before. And tech companies are throwing around billions like monopoly money.
The US Government Shutdown: Week 2
The shutdown is a real issue for real people, but the things driving stock prices, company profits, economic growth, interest rates, are still doing okay.
Stocks keep climbing. The S&P 500 hit new highs this week. The Nasdaq pushed forward. It's not what most people expected when the shutdown started.
Corporate earnings reports show strong numbers. Businesses are making money. The Federal Reserve is cutting interest rates, which is like putting fuel in the market's tank. And AI spending? Companies are pouring billions into that, shutdown or not.
Markets have seen shutdowns before. They usually get resolved. Investors are betting this one will too, so they're focusing on the bigger picture instead of the daily political drama.
Gold: Historical Price Peak
Gold crossed $4,000 per ounce this week. That's never happened before. Ever.
When people get nervous about the future, they buy gold. It's been that way for thousands of years. Right now, there's plenty to be nervous about. Trade tensions. The shutdown. Inflation that won't quite go away.
Gold pulled back a bit on Thursday, but it's still way up for the year. If you're wondering whether you missed the boat, here's a better question: why do you want gold in the first place? If it's because you're worried about everything else, then the price might not matter as much as the protection it offers.
Goldman Sachs raised its December 2026 gold price forecast on Monday to $4,900 per ounce.
Just remember, gold doesn't pay dividends. It doesn't grow earnings. It sits there and either goes up or down based on fear and demand. That's not bad, it's just different from stocks or bonds.
China’s New Export Restrictions
Rare earth on focus. These are minerals used in everything from smartphones to electric cars to military equipment. The US buys most of these materials from China. Now they're going to cost more. Some might not be available at all for a while.
This affects supply chains—the complicated system that gets parts from mines to factories to your hands. When one link breaks, the whole thing slows down. Expect higher prices for tech products. Expect delays.
But there's a silver lining for US companies. If China won't sell us rare earths at reasonable prices, we'll have to mine and process our own. That means jobs. Investment. New facilities. It'll take time, but this push might actually help US domestic manufacturing in the long run.
Circular AI Deals
Nvidia just keeps winning. $NVDA ( ▼ 1.25% ) hit another record high this week. The company is investing $2 billion into Elon Musk's xAI project. They're selling their Blackwell AI chips as fast as they can make them. Analysts keep raising price targets. Analysts just raised their Nvidia price target to $300.
AMD & OpenAI Deal. OpenAI is buying $6 billion worth of AMD chips over five years. The deal even includes a provision where OpenAI could eventually own up to 10% of $AMD ( ▼ 0.94% ) if certain milestones get hit. This is AMD's biggest shot at challenging Nvidia's dominance.
OpenAI’s Investments. They're planning $300 billion in data center investments over the next five years. They're partnering with Oracle $ORCL ( ▲ 1.57% ), Nvidia, and now AMD. They want to be everywhere at once.
xAI raised $20 billion. Elon Musk's AI company is building something called Colossus 2 in Memphis. It's going to need a massive amount of computing power, which is why Nvidia's involved.
The Bottom Line
What does this all mean?
Government chaos. Historic gold prices. China trade tensions. AI companies are spending money faster than you can count it.
But here's what you need to remember: markets have survived worse than a government shutdown.
They've weathered trade wars before. And yes, some AI investments will probably flame out spectacularly—but that doesn't mean all of them will.
Don’t panic. Keep your diversification. And if all this uncertainty makes you nervous, that's actually healthy. It means you're paying attention.
The investors who do well aren't the ones who predict every twist and turn. They're the ones who stay steady when things get weird.
Check back next week. We'll see where the shutdown stands, whether gold keeps climbing, and which AI company announces the next eye-popping deal.
Until then, take a breath.
Trader Insights Media tracks thousands of companies every week using rigorous financial analysis.
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