Stocks Push Higher as AI Deal Spree Rolls On: Markets Wrap

(Bloomberg) — Global stocks’ tech-fueled advance continued as another round of big-ticket artificial intelligence deals and partnerships stoked fresh optimism.

Asian technology stocks led the charge as Japan’s Hitachi Ltd. teamed up with OpenAI on energy and related infrastructure, while Fujitsu Ltd. expanded its collaboration with Nvidia Corp. Meanwhile, Global Infrastructure Partners was in advanced talks to acquire Aligned Data Centers, a major beneficiary of the AI spending boom, in a deal that could value the company at about $40 billion.

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S&P 500 futures edged up 0.1%, setting the US benchmark on track for a sixth straight gain and its longest winning streak since July. The gauge has now gone 114 trading sessions without a 5% pullback, taking investors on a one-way march to all-time highs.

Europe’s Stoxx 600 extended its record run, fueled by mining shares as copper headed for its biggest weekly advance since April.

Investors are wagering that the billions pouring into the AI sector will translate into profits and extend gains in tech shares. The rally underscores how bullish momentum is overshadowing concerns about a US government shutdown, now in its third day and prompting a blackout in key economic data.

“Financial market volatility is falling across the board, partly driven by the US government shutdown and the delay to key data releases such as the September jobs data,” wrote ING strategists Chris Turner and Francesco Pesole. “Instead, investors remain transfixed by the AI-driven rally in megacap tech shares, which shows no signs of slowing.”

Friday’s burst of new partnerships and potential deals came just a day after a share sale lifted OpenAI’s valuation to $500 billion. Stocks have climbed to successive record highs this year, with AI optimism adding to bullish momentum from prospects of monetary policy easing and resilient earnings.

In commodities, gold was on track for a seventh weekly gain, fueled by central bank buying amid falling US interest rates and lingering inflation concerns. And despite all the hype around AI and the surge in chip stocks this year, gold miners have actually been the better bet.

An MSCI Inc. gauge of global gold equities has soared about 135% in 2025. It’s on course for its biggest-ever outperformance against the index compiler’s measure of major semiconductor firms, which is up 40%.

In other corners of the market, oil headed for its biggest weekly decline since late June, ahead of an OPEC+ meeting that’s expected to result in the return of more idled barrels. The dollar and US Treasuries held steady, with the 10-year yield at 4.09%.

The continued optimism around AI is stoking questions over how far the rally can run. Concerns are growing that valuations look overheated as spending has yet to translate into earnings.

“The market may well start asking questions whether current valuation levels are justified,” said Wolf von Rotberg, equity strategist at Bank J. Safra Sarasin. “Further upside is set to be much more gradual, with risks of a setback fairly elevated.”

What Bloomberg Strategists say….

“Stocks can defy slowing labor-market fundamentals while speculators cover shorts, fund managers are underinvested and hedge funds are underperforming…Positioning is prime for now yet, as with valuations, when the collective penny drops that the economy is slowing, the price correction will be abrupt.”

— Simon White, Macro Strategist. For the full analysis, click here.

Corporate News:

Huawei Technologies Co. used advanced components from Asia’s largest technology firms in at least some of its leading Ascend AI processors, a research firm discovered during teardowns. Applied Materials Inc. shares dropped as much as 3.4% in premarket trading after a $600 million hit to its 2026 revenue. Boeing Co.’s 777X is slated to fly commercially for the first time in early 2027 instead of next year, people familiar with the matter said, a fresh setback to the US planemaker that sets the stage for potentially billions of dollars in accounting charges. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.1% as of 8:16 a.m. New York time Nasdaq 100 futures rose 0.1% Futures on the Dow Jones Industrial Average rose 0.2% The Stoxx Europe 600 rose 0.3% The MSCI World Index rose 0.2% Currencies

The Bloomberg Dollar Spot Index was little changed The euro rose 0.2% to $1.1733 The British pound was little changed at $1.3446 The Japanese yen was little changed at 147.33 per dollar Cryptocurrencies

Bitcoin fell 0.2% to $120,464.2 Ether fell 0.2% to $4,485.89 Bonds

The yield on 10-year Treasuries was little changed at 4.08% Germany’s 10-year yield was little changed at 2.70% Britain’s 10-year yield declined three basis points to 4.68% Commodities

West Texas Intermediate crude rose 0.3% to $60.65 a barrel Spot gold rose 0.2% to $3,864.09 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Winnie Hsu and Cecile Gutscher.

©2025 Bloomberg L.P.