S&P 500 and Nasdaq Gain as Amazon-OpenAI Deal Lifts Tech Stocks; Kenvue Soars on Buyout
The S&P 500 and Nasdaq Composite started November on a strong note Monday, supported by optimism around artificial intelligence and a series of major tech deals. Amazon and Nvidia led the gains, while Kenvue shares surged following a buyout announcement from Kimberly-Clark.
Amazon.com hit an all-time high after announcing a multi-year $38 billion cloud services deal with OpenAI, giving the ChatGPT maker expanded access to Nvidia graphics processors. The partnership marks one of the largest AI infrastructure agreements to date.
Nvidia stock rose 2.5% after President Donald Trump confirmed that the company’s most advanced AI chips will be reserved exclusively for U.S. companies. Meanwhile, Microsoft secured export licenses to use Nvidia chips in UAE-based data centers.
Adding to the momentum, Loop Capital increased its price target for Nvidia by $100, further boosting investor confidence in the chipmaker.
AI Optimism Drives Market Gains
Rising enthusiasm for artificial intelligence continues to push U.S. markets to record highs. Several of the “Magnificent Seven” tech giants have reported higher spending on AI development, fueling broader market optimism. Both the S&P 500 and Nasdaq extended their longest monthly winning streaks in years during October.
Investors are now looking ahead to upcoming earnings reports from Advanced Micro Devices (AMD) and Qualcomm, which could further shape AI sector sentiment.
Michael Sansoterra, CIO of Silvant Capital Management, noted that earnings growth remains strong across sectors, not just in technology. “The market appears to be on track beyond the AI theme,” he said. “Economic fundamentals have been surprisingly resilient despite concerns about inflation and employment.”
Kenvue Soars on $40 Billion Buyout
Kenvue stock jumped 17.4% after Kimberly-Clark announced plans to acquire the Tylenol maker in a deal valued at over $40 billion. However, Kimberly-Clark’s own shares slipped 11.8% following the announcement.
By 10:02 a.m. ET, the Dow Jones Industrial Average dropped 177.70 points (0.37%) to 47,385.17, while the S&P 500 added 4.14 points (0.06%) to 6,844.34, and the Nasdaq Composite rose 128.77 points (0.54%) to 23,853.72.
Industrial giants Caterpillar and Honeywell weighed on the Dow, losing 1.5% and 0.8%, respectively.
Economic Data and Fed Outlook
Investors are awaiting key private payroll data due Wednesday, with the prolonged U.S. government shutdown creating uncertainty around official economic reports. The Federal Reserve’s recent rate cut has also sparked debate among policymakers, as Chair Jerome Powell warned against assuming further cuts in December.
Data released Monday showed U.S. manufacturing contracted for an eighth consecutive month, signaling lingering weakness in industrial output.
The U.S. Supreme Court is also set to review a case concerning the legality of Trump-era tariffs later this week, adding another layer of policy focus for investors.
Other Market Movers
IDEXX shares gained 13% after the company raised its full-year forecasts, making it one of the top performers in the S&P 500. Berkshire Hathaway’s Class B shares slipped 0.8% following mixed quarterly results.
Meanwhile, IREN jumped nearly 20% after signing a $9.7 billion data center deal with Microsoft to supply access to Nvidia GB300 processors over five years.
On the broader market, declining issues outnumbered advancers by nearly 2-to-1 on both the NYSE and Nasdaq. The S&P 500 recorded 11 new 52-week highs and 25 new lows, while the Nasdaq posted 50 new highs and 95 new lows.
