U.S. Stocks End Monday with Mixed Results
(MENAFN) U.S. equities posted a mixed close on Monday, as Wall Street showed resilience despite the federal government shutdown dragging into another week.
The Dow Jones Industrial Average dipped 63.31 points, or 0.14%, to settle at 46,694.97. In contrast, the S&P 500 climbed 24.49 points, or 0.36%, to 6,740.28. The Nasdaq Composite Index surged 161.16 points, or 0.71%, finishing at a record-high 22,941.67.
Out of the S&P 500’s 11 main sectors, seven closed higher. Consumer discretionary and utilities led gains, rising 1.05% and 0.98%, respectively. On the downside, real estate declined 0.99%, while consumer staples slipped 0.59%.
Tech sentiment soared following a high-impact announcement from AMD, which revealed a multiyear chip supply deal with OpenAI. The agreement also includes an option for OpenAI to acquire up to 10% of AMD, a direct competitor to Nvidia. AMD shares skyrocketed 23.71% on the development, driving a broader rally in semiconductor stocks such as Applied Materials and Micron.
Banking stocks were also in focus. Comerica jumped over 10% after Fifth Third Bancorp confirmed a $10.9 billion all-stock acquisition of the regional lender. The merger is set to create the ninth-largest U.S. bank by total assets.
Despite the budget stalemate in Washington, market optimism held firm. However, the lack of new economic data amid the shutdown has complicated the Federal Reserve’s policy outlook ahead of its upcoming rate decision.
"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, chief investment officer at Edwards Asset Management.
Investors now turn their attention to a string of Federal Reserve appearances this week, including Governor Stephen Miran on Wednesday and Chair Jerome Powell on Thursday. Meanwhile, third-quarter earnings season begins, with reports due from PepsiCo, Delta Air Lines, and Levi Strauss.
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