Stocks Rise as AMD Surges 25% to Lead Tech Rally: Markets Wrap

(Bloomberg) — A rally in chipmakers drove stocks to fresh all-time highs as Advanced Micro Devices Inc.’s deal with OpenAI added fuel to the artificial-intelligence frenzy that has powered the bull market. Bonds fell. The dollar rose.

The renewed advance in equities drove the S&P 500 up for a seventh straight day – the longest winning streak since May. AMD soared about 25% after the AI infrastructure agreement. While fellow chipmaker Nvidia Corp. fell, a closely watched gauge of semiconductors jumped 4%.

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Tech firms are spending hundreds of billions of dollars on advanced chips and data centers, not just to keep pace with a surge in the use of chatbots such as ChatGPT and Gemini, but to make sure they’re ready to handle a shift of economic activity from humans to machines.

“This morning’s announcement that AMD is engaging in a partnership with Open AI ‘worth tens of billions of dollars’ is certainly a key catalyst,” said Matt Maley at Miller Tabak. “The animal spirits surrounding the AI phenomenon are getting yet another boost to start the new week.”

With that said, Maley notes that it’s no surprise that issues like the government shutdown are being ignored by markets, unless it lasts for a very long time.

“As of now, the stock market is shrugging off the government shutdown, and is more focused on earnings optimism and the prospect of additional Federal Reserve rate cuts,” said Robert Edwards at Edwards Asset Management.

Longer-dated Treasury yields joined an advance similar Japanese debt rates after Sanae Takaichi’s surprise victory to lead the ruling party. The result stoked concerns that her pro-stimulus stance will lead to increased debt issuance. French bonds sold off after President Emmanuel Macron’s appointment of a continuity cabinet drew backlash.

Gold rose to a record, nearing $4,000-an-ounce. Oil gained after OPEC+ agreed to raise production by a modest amount.

US companies are set to enjoy a better-than-expected earnings season as a robust economy and a solid outlook for AI have left estimates looking too low, according to Goldman Sachs Group Inc. strategists led by David Kostin.

Morgan Stanley’s Michael Wilson is also among the more bullish forecasters on US earnings. In a note on Monday, the strategist said a potential return in inflation next year is poised to boost pricing power and corporate profits.

Solid earnings growth and extreme valuations are calling for further broadening of the global equity rally, Citigroup strategists led by Beata Manthey said.

A multi-month winning streak in US stocks is poised to continue based on an equity indicator from Barclays Plc that correctly predicted September’s rally in the face of concern over seasonal weakness.

The Barclays Equity Timing Indicator, which analyzes 19 inputs like market internals, positioning and economic data to find inflection points in the market, implies an 82% chance that the S&P 500 will advance in the next two months, with an average gain of 4% during that time, based on data going back to 2015.

Although it’s not an outright ‘buy’ signal, its current level suggests a statistically significant probability of upside following a 35% gain in the S&P 500 since early April.

Corporate Highlights:

Tesla Inc. managed to pique the interests of investors with a series of social media posts that sent the carmaker’s shares higher. Apple Inc. faces an investigation in France over the use of voice recordings made with its assistant Siri. Advanced Micro Devices Inc. surged after the chipmaker signed a deal with OpenAI for AI infrastructure that could generate tens of billions of dollars in new revenue. Micron Technology Inc. climbed as Morgan Stanley upgraded the shares to overweight from equal-weight saying the chipmaker is headed for multiple quarters of double-digit price increases. The US Supreme Court declined a chance to open social media companies to lawsuits over content recommended by their algorithms, turning away an appeal that accused Meta Platforms Inc.’s Facebook of radicalizing a man who killed nine South Carolina churchgoers Boeing Co. is guiding suppliers that 737 Max output could reach a 42-jet monthly tempo as soon as this month, according to people familiar with its plans, highlighting growing optimism at the planemaker as it works to win approval for the move from US regulators. Fifth Third Bancorp agreed to buy Comerica Inc. for about $10.9 billion in stock, the largest US bank deal this year and a sign that the logjam blocking big mergers in the industry may have broken under the Trump administration’s deregulation efforts. Verizon Communications Inc. named Dan Schulman chief executive officer, replacing Hans Vestberg effective immediately. The US Supreme Court turned away an appeal by ticketing giant Live Nation Entertainment Inc. in a consumer antitrust suit, dealing a blow to the company’s effort to manage its antitrust woes by channeling cases into arbitration. Paramount Skydance Corp. officially announced that it’s acquiring the online news site the Free Press and putting founder Bari Weiss in the role of editor-in-chief of CBS News, a move likely to stir controversy inside and outside of the news organization. Tata Capital Ltd. started taking orders on Monday for an initial public offering that may raise as much as 155 billion rupees ($1.7 billion), India’s biggest listing this year, and putting the country’s hot IPO market on course for a record month. Nvidia Corp.’s major server production partner Hon Hai Precision Industry Co. reported 11% growth in quarterly sales, signaling healthy demand for the chips and servers needed to develop artificial intelligence. Some of the main moves in markets:

Stocks

The S&P 500 rose 0.1% as of 9:57 a.m. New York time The Nasdaq 100 rose 0.6% The Dow Jones Industrial Average fell 0.4% The Stoxx Europe 600 was little changed The MSCI World Index rose 0.2% Bloomberg Magnificent 7 Total Return Index was little changed The Russell 2000 Index rose 0.5% Philadelphia Stock Exchange Semiconductor Index rose 3.8% AMD rose 26% Nvidia fell 1% Currencies

The Bloomberg Dollar Spot Index rose 0.3% The euro fell 0.3% to $1.1702 The British pound fell 0.1% to $1.3462 The Japanese yen fell 1.6% to 149.86 per dollar Cryptocurrencies

Bitcoin rose 1.8% to $124,983.16 Ether rose 3% to $4,633.72 Bonds

The yield on 10-year Treasuries advanced three basis points to 4.15% Germany’s 10-year yield advanced two basis points to 2.71% Britain’s 10-year yield advanced four basis points to 4.73% The yield on 2-year Treasuries advanced one basis point to 3.59% The yield on 30-year Treasuries advanced three basis points to 4.74% Commodities

West Texas Intermediate crude rose 1.4% to $61.75 a barrel Spot gold rose 1.5% to $3,944.79 an ounce ©2025 Bloomberg L.P.