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by | Oct 7, 2025 | AI News

US stocks mostly gained 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 0.7% to close at a fresh record high amid an over 23% rally from AMD. The S&P 500 (^GSPC) also gained 0.4% to notch an all-time high. The Dow Jones Industrial Average (^DJI), however, dropped 0.1%.

In another jolt to the AI outlook, AMD said Monday it has signed a multiyear deal with OpenAI 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. AMD’s wild rally lifted other chip stocks, with Applied Materials (AMAT), Micron (MU), and TSM (TSM) all rallied.

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

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 as 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.

LIVE COVERAGE IS OVER 21 updates

  • US stocks gained as the Nasdaq Composite (^IXIC) and the S&P 500 (^GSPC) closed at fresh records on Monday on the heels of a deal between chipmaker AMD (AMD) and ChatGPT maker OpenAI (OPAI.PVT).

    The megadeal lifted investor spirits that the AI boom has room to run.

    The Dow Jones Industrial Average (^DJI), however, dropped 0.1% as Verizon (VZ) shares sank 5% after the wireless company announced a leadership change.

  • Tech stocks continued to outperform on Monday as the OpenAI (OPAI.PVT) deal with chipmaker AMD (AMD) fueled optimism over AI.

    “The AI narrative continues to gain momentum,” wrote Louis Navellier, founder and chief investment officer of Navellier & Associates.

    AMD shares surged 25% after the company announced a multi-year agreement with OpenAI to supply AI chips. The arrangement includes OpenAI receiving penny options for up to 10% of AMD’s equity.

    “This gives some competition for NVIDIA, which currently dominates AI chips, and accelerates the timeline for data center buildouts,” noted Navellier.

    Nvidia shares were down about 1% in afternoon trading while the overall semiconductor sector rallied.

  • Concerns of a stock market bubble are growing as stocks were on pace to notch yet another all-time high on Monday.

    “The market has become very concentrated,” Dave Sekera, chief US market strategist at Morningstar said in a client note. “When you look at market performance, it’s all about AI.”

    The strategist argues returns are very highly correlated and concentrated in the mega-cap stocks, specifically, those that are most tied to the AI buildout boom and expected growth.

    However, the real economy may be showing signs of weakness amid slowing consumer consumption growth and a weakening labor market.

    “Looking forward, I think the market is in a balancing act. We’re walking this tightrope between just how much the AI buildout boom and the Fed easing rates is enough to offset other macroeconomic factors in which the economy is weakening,” said Sekera.

    On Monday, the Nasdaq Composite (^IXIC) and S&P 500 (^GSPC) were on pace for record closes as a megadeal between AMD (AMD) and OpenAI (OPAI.PVT) lifted hopes for the AI trade.

  • Yahoo Finance’s Alexandra Canal reports:

    Read more here.

  • Yahoo Finance’s Francisco Velasquez reports:

    Read more here.

  • Gold (GC=F), silver (SI=F), and bitcoin (BTC-USD) were all hitting record highs as the stock market hovered near its own peak, with investors seeking a hedge against mounting government spending and looser monetary policy.

    Gold futures neared $4,000 per troy ounce on Monday, while silver also jumped to $48.50 per ounce. Meanwhile, bitcoin jumped above $125,000 per token, also hovering at new highs.

    The jump in both “analog gold” and “digital gold” comes as questions grow over whether the current AI boom is fueling a bubble with stock market valuations last seen during the dot-com era.

    In Japan, stocks (^N225) reached record highs after the leading political party elected Sanae Takaichi over the weekend as its next prime minister. Market analysts view Takichi as a “fiscal dove,” supporting government stimulus to grow the economy.

    Japan’s surprise weekend election further indicates “how much of the developed world is pivoting into a ‘Run It Hot’ fiscal dominance framework, carrying monster deficits in order to try and outgrow debt,” noted Nomura Securities analyst Charlie McElligott.

    “Accordingly, Gold, Silver and Bitcoin are again simultaneously moving to fresh ATH’s as the chief winners in this latest escalation of the … ‘Debasement Trade,’ alongside equities then too ripping to record highs as well,” he added.

    The “debasement trade” refers to investors shifting into hard assets to guard against what they see as the erosion of fiat currencies’ value due to inflation, heavy government spending, and debt financed by money creation.

  • Tesla (TSLA) stock popped more than 2% on cryptic social media posts ahead of the company’s investor conference on Nov. 6.

    In one post on Sunday, the EV maker posted a video of a hubcap spinning. In the other, the post included headlights, increasing speculation over new reveals coming soon.

    Tesla shares have made a stunning recovery since their Spring lows. Year to date, the stock is up roughly 9% as the company has increasingly pivoted toward self-driving robo-taxis and humanoid robots.

  • Shares of Advanced Micro Devices (AMD) soared at the open after the chipmaker announced a multibillion-dollar deal with OpenAI (OPAI.PVT) that will see AMD provide upward of 6 gigawatts of GPUs to the AI startup.

    The stock rose as much as 38% at the open before paring gains. In early trading, the chipmaker’s market cap ballooned by more than $100 billion.

    The stock was seeing its second-largest one-day gain in 40 years.

    AMD’s stock had generally underperformed Nvidia’s (NVDA) over the last year, rising 22% in the past 12 months. Nvidia’s stock price rose 50% during the same period.

    Read more here about the AMD, OpenAI deal

  • 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.

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

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

  • 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.”

  • 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.

  • 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.

  • 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

  • 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.

    Reuters reports:

    Read more here.

  • 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.

    Bloomberg News reports:

    Read more here.

  • 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.

  • 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).

  • 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.

  • 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.

  • 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.

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