The main Wall Street indices posted mixed gains on Monday, with the S&P 500 and Nasdaq closing at new record highs. The rally was fueled by investor optimism over a major AI chip supply deal between AMD and OpenAI, which boosted risk appetite across the stock market, particularly within the technology and semiconductor sectors.
AMD shares soared 23.7% following the announcement, while other chipmakers also recorded notable gains, driving the Philadelphia Semiconductor Index up by 2.9%. Listed cryptocurrency companies, such as Coinbase, also benefited from the positive market momentum.
This bullish momentum in equities came despite the ongoing partial U.S. government shutdown, now in its sixth day, which has delayed the release of key economic data. Nevertheless, some analysts believe the market continues to hold upward momentum, supported by expectations that the Federal Reserve may lean toward further monetary easing amid signs of a weakening labor market.
Meanwhile, the third quarter corporate earnings season is expected to kick off next week, with investors closely watching results from major U.S. banks amid optimism for another strong earnings season for S&P 500 listed companies.
By the end of the session, the Dow Jones Industrial Average edged slightly lower, while the S&P 500 and Nasdaq posted solid gains, supported by continued optimism surrounding the AI sector and upcoming corporate earnings.
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