United States benchmark averages ended mixed on Monday (Tuesday AEDT), with the S&P 500 and Nasdaq Composite closing at record highs, boosted by strength in chipmakers.
The Dow Jones Industrial Average slipped 63.3 points, or 0.1%, to finish at 46,695.0, while the S&P 500 rose 24.5 points, or 0.4%, to 6,740.3. The Nasdaq Composite climbed 161.2 points, or 0.7%, to close at 22,941.7.
The Russell 2000 also hit a new record after crossing the 2,500 mark for the first time, ending up 10.2 points, or 0.4%, at 2,486.4.
Semiconductor stocks led the day’s gains after AMD announced it would supply AI chips to OpenAI in a deal that could generate tens of billions of dollars in annual revenue.
The agreement also gives OpenAI the option to purchase up to a 10% stake in the chipmaker.
Shares of AMD surged 23.7%, while the Philadelphia Semiconductor Index advanced 2.9% as investors piled into chipmakers poised to benefit from accelerating demand for artificial intelligence infrastructure.
Merger and acquisition enthusiasm also buoyed sentiment after Fifth Third Bancorp announced plans to acquire Comerica in an all-stock deal valued at US$10.9 billion (A$16.5 billion), creating the ninth-largest U.S. bank by assets.
Comerica shares jumped nearly 14%, while the SPDR S&P Regional Banking ETF gained 1% on expectations that further consolidation could follow.
Meanwhile, the federal government remained partially closed for a sixth straight day, with lawmakers at an impasse over budget negotiations.
The shutdown has delayed key economic reports, leaving investors to rely on private data to assess inflation trends and the Federal Reserve’s next policy moves.
Despite the lack of official data, markets are watching for commentary from several Fed officials this week, including Governor Stephen Miran and Chair Jerome Powell, for signals on the timing of potential rate cuts.
On the bond markets, yields ticked up, with the 10-year Treasury rising 0.9% to 4.158% and the 2-year gaining 0.5% to 3.592%.
