U.S. Stocks Rise on Rate-Cut Optimism as AMD Surges After OpenAI Deal
U.S. stock markets traded mostly higher on Monday, supported by growing expectations of interest-rate cuts later this month, even as the U.S. government shutdown dragged into another week. Shares of Advanced Micro Devices (AMD) skyrocketed after announcing a major artificial intelligence partnership with OpenAI.
By 09:46 ET (13:46 GMT), the S&P 500 had gained 13 points (0.2%), while the Nasdaq Composite advanced 75 points (0.3%). The Dow Jones Industrial Average, however, slipped 65 points (0.1%), reflecting mixed market sentiment.
Shutdown Delays Key Economic Data
The ongoing federal shutdown has delayed several major economic releases, including the crucial nonfarm payrolls report. Without official data, investors have turned to private sector indicators to gauge market health.
Analysts at Vital Knowledge said recent private employment and business activity readings suggest “darkening storm clouds” and persistent inflation pressures ahead.
The delay in government data adds uncertainty for the Federal Reserve, which is expected to deliver its next interest rate decision in October. Despite the data gap, CME’s FedWatch Tool shows traders still expect more rate cuts at the upcoming meeting.
Meanwhile, the political standoff between Republicans and Democrats continues, centered on healthcare funding. On Sunday, a White House official warned that mass layoffs of federal workers could begin if talks fail to progress.
AMD Soars on OpenAI Partnership
Shares of Advanced Micro Devices jumped 32% after the company unveiled a multi-year deal with OpenAI to supply AI chips. The agreement could generate tens of billions in annual revenue for AMD and reportedly includes an option for OpenAI to acquire up to 10% of AMD’s equity.
The partnership will deploy hundreds of thousands of AMD GPUs—equivalent to six gigawatts of power—beginning in the second half of 2026. OpenAI also plans to build a one-gigawatt facility using AMD’s upcoming MI450 chips starting next year.
Corporate Highlights
In earnings news, Constellation Brands (NYSE:STZ) was set to report August-quarter results after the close. The beverage company has struggled with rising aluminum tariffs and weak consumer demand, which have weighed on beer and wine sales.
Shares of Critical Metals Corp. (NASDAQ:CRML) surged 64% following reports that the Trump administration is considering an equity investment in the company’s Greenland rare-earth project, known as Tanbreez.
According to Reuters, officials are weighing the conversion of a $50 million Defense Production Act grant into an 8% government stake, though discussions remain preliminary.
Oil Prices Rebound After OPEC+ Decision
Oil prices climbed after OPEC+ announced a smaller-than-expected production increase for November, easing fears of an oversupply.
The group agreed to add 137,000 barrels per day, matching the October increment and far below the 500,000 bpd some traders anticipated.
The news offered relief to markets after last week’s steep losses. OPEC+, which has already restored 2.7 million bpd of production this year, continues to unwind pandemic-era supply cuts cautiously to avoid flooding the market.
