Stock market today: Nasdaq leads Dow, S&P 500 higher as AMD surges on OpenAI deal, shutdown drags on

US stocks rose on Monday as the federal government shutdown entered another week, while a megadeal between AMD (AMD) and OpenAI (OPAI.PVT) lifted hopes for the AI trade.

The Nasdaq Composite (^IXIC) led the way higher, rising 0.5% amid a near-35% surge from AMD. The S&P 500 (^GSPC) ticked 0.3% higher, while the Dow Jones Industrial Average rose 0.1%.

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In another jolt to the AI outlook, AMD (AMD) said Monday it has signed a multiyear deal with OpenAI (OPAI.PVT) to supply chips that will bring in tens of billions of dollars in annual revenue. It also gives the ChatGPT owner the option to purchase up to 10% of AMD, one of Nvidia's (NVDA) key rivals.

That served as another AI-related boost to a market that has proved resilient despite the shutdown in Washington. Wall Street on Friday returned to a strong rally that has pushed major indexes to fresh record highs. Eyes are now on the OpenAI developer event on Monday for potentially market-moving news.

Investors have focused on upbeat prospects for AI even as the stoppage delays key economic releases such as the monthly jobs report.

But overseas, markets were rattled by political upheavals. In France, the CAC 40 (^FCHI) stock benchmark sank and the euro (EURUSD=X) fell after the sudden resignation of its prime minister pushed the country back into political crisis. And in Japan, the Nikkei 225 (^N225) surged almost 5% to a record high as an ultraconservative was all but confirmed as the country's next leader in a surprise choice.

On Wall Street, data-starved investors could still get inputs for calculating the chances of two interest-rate cuts this year. On the Federal Reserve front, President Trump-backed Governor Stephen Miran is set to speak on Wednesday, followed by Chair Jerome Powell on Thursday. And data from non-government sources is also on deck, with the University of Michigan's consumer sentiment report for October the likely highlight.

Meanwhile, third-quarter earnings are set to start trickling in, with results from PepsiCo (PEP), Delta Air Lines (DAL), and Levi Strauss (LEVI) on the docket this week.LIVE13 updates

1 min ago

Grace O'Donnell

Nasdaq, S&P, Dow rise at the open as AMD, OpenAI deal lift tech stocks

Stocks rose to kick the week off as the government shutdown entered its second week and the AI trade surged.

The Nasdaq Composite (^IXIC) led the gains, rising 0.5%, after AMD (AMD) announced a multibillion-dollar deal with OpenAI (OPAI.PVT), lifting tech stocks.

The S&P 500 (^GSPC) climbed 0.3% and the Dow Jones Industrial Average (^DJI) added 0.1% as the indexes looked to extend their daily winning streak to seven straight days in the green.

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The 10-year Treasury yield (^TNX) increased 4 basis points to 4.16%, while the 30-year yield (^TYX) reached 4.75%.

Gold futures (GC=F) neared the $4,000 mark, rising 1.2% to $3,955.90 per ounce. 21 mins ago

Grace O'Donnell

Verizon names former PayPal boss Dan Schulman as new CEO

Verizon (VZ) announced on Monday that former PayPal CEO Dan Schulman would replace Hans Vestberg as CEO, effective immediately. The stock edged 0.4% lower ahead of the opening bell.

Vestberg, who led the company since 2018, will continue to stay on as an adviser through Oct. 4, 2026, the company said, in part to ensure a smooth acquisition of Frontier Communications.

Schulman has been a member of Verizon's board since 2018, and he also has racked up 20 years of experience in the industry as the founding CEO of Virgin Mobile USA, president of T-Mobile’s prepaid group, and president of AT&T’s Consumer Division, in addition to leading PayPal from 2015-2023.

"Verizon is at a critical juncture," Schulman said in a press release. "We have a clear opportunity to redefine our trajectory, by growing our market share across all segments of the market, while delivering meaningful growth in our key financial metrics." 34 mins ago

Grace O'Donnell

Palantir stock rebounds from Friday's losses

Palantir stock (PLTR) rose over 2% in premarket trading, rebounding from Friday's losses as the AI trade got a lift in broader markets.

Shares of the AI software company had fallen 7% on Friday after an internal US Army memo stated that the upgrades to battlefield communications — which are being undertaken by Palantir, Anduril (ANIN.PVT), and others — contained "fundamental" security problems.

"We cannot control who sees what, we cannot see what users are doing, and we cannot verify that the software itself is secure," the memo says, according to Reuters.

Read more here. Today at 12:12 PM UTC

Grace O'Donnell

Fifth Third to acquire Comerica for $10.9 billion in regional bank tie-up

Regional bank Fifth Third Bancorp (FITB) announced Monday is buying Comerica (CMA) for $10.9 billion in an all-stock deal. Fifth Third stock sank 4% in premarket trading, while Comerica stock popped 11%.

The acquisition will create the ninth-largest US bank with approximately $288 billion in assets.

From the AP:

Read more here. Today at 11:37 AM UTC

Jenny McCall

Good morning. Here's what's happening today.

Economic data: No notable economic data.

Earnings calendar: No notable earnings.

Here are some of the biggest stories you may have missed over the weekend and early this morning:

AMD soars after OpenAI looks to take stake through AI chip deal

Shutdown to leave the market flying blind

Trump's tariffs get a seeming tweak as legal threats pile up

Tesla teases Tuesday event, stock pops

Fifth Third Bancorp to buy Comerica for $10.9B

Goldman's Kostin: S&P 500 firms to beat low earnings bar

Japan's Nikkei surges near 5% after surprise leadership win

French stocks sink after PM's sudden resignation Today at 11:25 AM UTC

Jenny McCall

AMD soars after OpenAI looks to take stake through AI chip deal

AMD (AMD) stock rose 24% before the bell on Monday after announcing it will supply artificial intelligence chips to OpenAI (OPAI.PVT) in a deal set to bring in tens of billions of dollars in annual revenue and will give the ChatGPT creator the option to buy roughly 25% of the chipmaker.

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Reuters reports:

Read more here. Today at 11:00 AM UTC

Jenny McCall

Goldman’s Kostin: S&P 500 firms to beat low earnings bar

Goldman Sachs Group (GS) strategist, David Kostin has said that US companies are set to enjoy a better-than-expected earnings season as a robust economy and a solid outlook for artificial intelligence have left estimates looking too low.

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Bloomberg News reports:

Read more here. Today at 10:17 AM UTC

Karen Friar

Tesla stock pops after EV maker teases Tuesday event

Shares in Tesla (TSLA) rose over 2% in premarket after the Elon Musk-led EV maker teased that a new product could be launched on Tuesday.

The hints came in posts to X on Sunday by Tesla, which reported record quarterly deliveries last week as US buyers rushed to snag an expiring tax credit.

But the automaker's sales momentum has faltered this year, leading to hopes for a new, cheaper Tesla model to revive the market.

Reuters reports:

Read more here. Today at 10:17 AM UTC

Premarket trending tickers: Micron, OpenAI and UiPath

Here's a look at some of the top stocks trending in premarket trading:

Micron (MU) stock rose 3% before the bell on Monday after Morgan Stanley upgraded the chipmaker from Equalweight to Overweight, raising its price target to $220.00 from $160.00.

OpenAI's (OPAI.PVT) value has gone up 149% this year after the startup announced a flurry of deals and an instant buy option in ChatGPT, sending shares of Etsy (ETSY) and Shopify (SHOP) up.

UiPath (PATH) stock rose 10% in premarket trading on Monday. The company announced last month it had several new partnerships with Nvidia (NVDA), Alphabet (GOOG), Snowflake (SNOW), and OpenAI (OPAI.PVT). Today at 9:53 AM UTC

Karen Friar

France's stock benchmark sinks after PM's sudden resignation

France's stock benchmark the CAC 40 (^FCHI) slumped, down around 2% at one point on the heels of Prime Minister Sebastien Lecornu's surprise resignation on Monday.

The euro (EURUSD=X) weakened against the dollar, while the 10-year yield on French government bonds jumped as the chances rose of fresh elections to resolve the political crisis.

Bloomberg reports:

Read more here. Today at 9:29 AM UTC

Karen Friar

Japan stocks soar to record after surprise Takaichi win in race for next leader

Japanese shares surged to a record high on Monday, as Sanae Takaichi was all but confirmed to become the country's next prime minister.

Meanwhile, the yen and long-term bond prices tumbled after Takaichi was chosen as leader of the LDP, Japan's ruling party, as traders bet on a revival in big spending and loose monetary policy.

Reuters reports:

Read more here. Today at 7:50 AM UTC

Karen Friar

Nvidia partner Hon Hai’s sales rise 11% in boost for AI outlook

Bloomberg reports:

Nvidia Corp.’s (NVDA) major server production partner Hon Hai Precision Industry Co. (HNHPF, 2317.TW) reported 11% growth in quarterly sales, signaling healthy demand for the chips and servers needed to develop artificial intelligence.

The Taiwanese company known also as Foxconn reported revenue of NT$2.06 trillion ($67.6 billion) for the three months to September, generally in line with analysts’ projections. It also projected a rise in sales this quarter from the previous three months, citing strong AI demand.

Hon Hai’s results may lend weight to bets on the sustainability of a post-ChatGPT boom in AI infrastructure construction that’s swept up big tech firms like Meta Platforms Inc. (META) and startups including OpenAI (OPAI.PVT). Globally, investors have poured capital into the suppliers of that rollout, from chipmakers and networking firms to companies like Hon Hai that make servers to house Nvidia chips. Still, some investors have warned that valuations are unsustainable until AI services truly go mainstream.

Read more here. Today at 1:58 AM UTC

Rian Howlett

Gold approaches $4,000 in record-setting run buoyed by government shutdown

Bloomberg reports:

Read more here.

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