Stock market today: S&P 500 hits another closing record as AMD leads tech rally
The S&P 500 hit fresh closing all-time highs Monday, as Advanced Micro Devices surged following a deal with AI-darling OpenAI, lifting broader tech and overshaddowing an ongoing govenrment shutdown.
At 4:00 pm. ET (20:0-0 GMT), the benchmark S&P 500 rose 0.4% to a closing record of 6,740.18. The tech-heavy Nasdaq Composite rose 0.9%. to also clinch a all-time closing high of 22,941.67. Meanwhile, the blue-chip {{169|Dow Jones Industrial Average fell 0.1%.
Crucially, the partial shutdown of the U.S. government has led to the delay of official economic data, including the all-important nonfarm payrolls report.
These postponements have led to heightened scrutiny of private-label economic figures over the last few days. Trackers of private employment and business activity, in particular, signaled “darkening storm clouds” and elevated inflation ahead, analysts at Vital Knowledge said in a note.
The absence of official data has also taken on more importance with the Fed set to unveil a fresh interest rate decision in October. Despite the lack of government numbers, markets are still widely anticipating that the central bank will opt to roll out more borrowing cost reductions at its next policy meeting, according to CME’s FedWatch Tool.
All the while, the shutdown drags on, with Republicans and Democrats at odds over healthcare assurances. On Sunday, a top White House official warned that mass layoffs of federal workers will begin if President Donald Trump decides that talks with congressional Democrats to end the shutdown are “absolutely going nowhere.”
AMD soars to power tech following agreement with OpenAI
Shares in Advanced Micro Devices surged 29% after the company announced a multi-year agreement to supply artificial intelligence chips to OpenAI, a deal expected to generate tens of billions of dollars in annual revenue.
The agreement reportedly includes an option for OpenAI to acquire up to 10% of the chipmaker’s equity – a move that would likely allow it to ride the wave of enterprise spending on AI infrastructure.
“With a 10% stake in AMD this quickly brings Lisa Su and AMD right into the core of the AI chip spending cycle and is a huge vote of confidence from OpenAI and Altman,” Wedbush said in a Monday note. “Any lingering fears around AMD should now be thrown out the window as this gives them a major platform to monetize the AI Revolution,” it added.
The partnership will see the deployment of hundreds of thousands of AMD’s graphics processing units, equivalent to six gigawatts, over several years beginning in the second half of 2026.
OpenAI plans to construct a one-gigawatt facility using AMD’s forthcoming MI450 series chips starting next year.
Regional bank stocks jump on M&A fever
Comerica Inc (NYSE:CMA) Inc (NYSE:CMA) jumped more than 14% after agreeing to a $10.9B takeover offer from rival Fifth Third Bancorp (NASDAQ:FITB).
The move sent regional banks sharply higher as investors bet on further consolidation in the industyr.
Shres of Critical Metals Corp. (NASDAQ:CRML) skyrocketed by more than 40% amid media reports around a potential Trump administration investment in the group.
The White House has held talks about taking an equity stake in Critical Metals, the company developing Greenland’s Tanbreez rare earth deposit, Reuters reported on Friday, citing people familiar with the matter.
Such a move would give Washington a direct interest in one of the world’s largest untapped sources of rare earths, a sector dominated by China, the report said.
According to the Reuters report, officials are considering converting a $50 million Defense Production Act grant application by Critical Metals into an equity investment. If finalized, that conversion could translate into about an 8% stake in the company, though discussions remain preliminary and may not result in a deal.
Starbucks Corporation (NASDAQ:SBUX), meanwhile, was also on the move higher after closing a a number of stores in North America in an effort to cut costs amid its ongoing turnaround.
Tesla Inc (NASDAQ:TSLA) was up 4% as the automaker will reportedly be exempt from auto tariffs as President Trump considers relief for domestic automakers. As well as a potential tariff exemption, Tesla also unvieled a promotional video that stoked optimism that the EV company may soon release a new car.