Yahoo Finance’s Claire Boston reports:

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Fermi (FRMI) stock swung back and forth on Thursday after rising over 54% in its first day of trading on Wednesday.

Shares of the data center REIT rose 9% in premarket trading before dipping 3% lower. At last check, the stock dived

The real estate trust co-founded by former US Energy Secretary Rick Perry aims to build hyperscale data centers and power grids to meet the power demands of artificial intelligence. Its development-stage campus, known as the “President Donald J. Trump Advanced Energy and Intelligence Campus,” spans more than 5,000 acres of land in the Texas Panhandle.

“The biggest reason that we went public is we have a global supply chain, and I think it makes it easier for our critical vendors to know who we are if we’re a public company,” Fermi America Co-Founder and CEO Toby Neugebauer told Yahoo Finance’s Market Domination. “The No. 1 race on the planet right now is for gas generation and the components associated with electron generation, and we want our customers … or our vendors to feel good about us.”

Excitement over OpenAI’s (OPAI.PVT) $500 billion valuation sparked a rally in AI stocks on Thursday, after the company surpassed Elon Musk’s SpaceX (SPAX.PVT) as the most valuable startup.

Shares of AI chipmakers Nvidia (NVDA), Broadcom (AVGO), and AMD (AMD) gained about 1.5%, 2%, and 3%, respectively, in early trading.

Nvidia stock hit an intraday all-time high of $190 on Thursday morning, as optimism around AI chip demand eased investors’ concerns about Nvidia’s $100 billion investment in OpenAI.

It’s been a news-filled week for OpenAI, which released its new video generation AI model, Sora, and announced a partnership with Samsung (005930.KS) and SK Hynix (000660.KS) to increase the supply of advanced memory chips. Current and former OpenAI employees also sold about $6.6 billion of stock to investors, which is what boosted the ChatGPT maker’s valuation to an estimated $500 billion.

Tesla (TSLA) reported third quarter global deliveries that blew past estimates, initially lifting the stock about 3% at the open. However, shares of the electric vehicle maker gave way in early trading, falling by 1% as of 9:45 a.m. ET.

Yahoo Finance’s Pras Subramanian reports:

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US stocks opened higher on Thursday, as the buzz around artificial intelligence lifted tech stocks, even as the US government entered its second day of shutdown. OpenAI’s (OPAI.PVT) $500 billion valuation helped spur that excitement for AI.

The tech-heavy Nasdaq Composite (^IXIC) led gains, advancing 0.5% at the open. The S&P 500 (^GSPC) rose 0.2%, building on a record high that saw the major index climb above 6,700 for the first time on Wednesday. And the Dow Jones Industrial Average (^DJI) nudged below the flat line.

Meanwhile, Treasury yields held steady after private payrolls data released Wednesday raised investors bets on a Federal Reserve interest rate cut in October. The 10-year yield (^TNX) rose by 1 basis point to 4.11%.

As the federal government enters day two of a shutdown, Treasury Secretary Scott Bessent warned the gridlock could slow US economic growth.

“This isn’t the way to have a discussion, shutting down the government and lowering the GDP,” Bessent told CNBC’s “Squawk Box.” “We could see a hit to the GDP, a hit to growth, and a hit to working America.”

The US’s gross domestic product grew at an annualized rate of 3.8% in the third quarter, growing for the second straight quarter after growth contracted in the first quarter.

On Wednesday, US senators failed to advance a plan to fund the government after another round of votes. But as Yahoo Finance’s Ben Werschkul notes, the White House also appears poised to use the shutdown as an opportunity to expand Trump’s powers to potentially fire government workers or cut programs.

“A lot of good can come down from shutdowns,” Trump said ahead of the stoppage. “We can get rid of a lot of things that we didn’t want, and they’d be Democrat things.”

Fair Isaac (FICO), a data analytics company that provides measures of consumer risk, said on Thursday that it would begin selling FICO scores directly to mortgage lenders, circumventing the three major credit bureaus.

FICO stock soared nearly 19% in premarket trading on Thursday, while shares of credit bureaus TransUnion (TRU) and Equifax (EFX) fell 12% each. Experian (EXPN.L) stock, which trades on the London exchange, also dropped 5%.

FICO will sell scores to lenders for a royalty fee of $4.95 per score, undercutting the fees from resellers by 50% on average, the company said. FICO-score mortgage loans that close will also incur a fee of $33.

The move comes as the company faces competition from its lone rival, VantageScore Solutions. In July, government-backed Fannie Mae and Freddie Mac dealt a blow to FICO by giving lenders a green light to use VantageScore to buy a home.

Since July 8, excluding today’s premarket move, FICO shares have declined by around 20%. If today’s upswing holds, the stock will have regained nearly all its losses since then.

OpenAI (OPAI.PVT) has completed a deal to help employees sell shares in the company at a $500 billion valuation, propelling the ChatGPT owner past Elon Musk’s SpaceX (SPAX.PVT) to become the world’s largest startup.

Bloomberg reports:

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