The S&P 500 and the Nasdaq advanced on Monday, as artificial intelligence-related dealmaking boosted investor sentiment even as the U.S. government shutdown extended through its sixth day.
The Nasdaq and the S&P 500 reached record closing highs, while the blue-chip Dow inched lower.
Market Snapshot
The Dow Jones Industrial Average fell 63.31 points, or 0.14%, to 46,694.97, the S&P 500 gained 24.49 points, or 0.36%, to 6,740.28 and the Nasdaq Composite gained 161.16 points, or 0.71%, to 22,941.67.
Market Movers
AMD, Nvidia - AMD soared 23.7% after announcing that it had struck a multibillion-dollar agreement with OpenAI. As part of the deal, OpenAI will take a 10% stake in the chip maker and buy six gigawatts worth of AMD’s chips starting with the MI450 chip next year, the companies said. While AMD’s competitor Nvidia dropped 1.1%.
Tesla - Tesla jumped 5.5%. Tesla teased an October 7 event, in which investors and analysts anticipate the unveiling of a more affordable vehicle to counter falling sales.
Palantir - Palantir shares gained 3.7%. Shares of Palantir, which sells artificial-intelligence software to manage and analyze large amounts of data, fell 7.5% on Friday after a report said there weresecurity flaws in a communications platformdesigned for the Army. A Palantir spokesperson told The Wall Street Journal that the “security review process during the experimental phase of NGC2 functioned as designed.” Palantir is developing NGC2 with Anduril Industries.
AppLovin - The U.S. Securities and Exchange Commission has been probing marketing platform AppLovin's data-collection practices, Bloomberg News reported on Monday, citing people familiar with the matter. Shares of the company were down 14% at market close.
Plug Power - Plug Power climbed 8.4%, extending gains from last week. Shares surged 34% on Friday after H.C. Wainwright analyst Amit Dayal raised his price target to $7 from $3, arguing that higher electricity prices help make hydrogen technology more competitive.
Comerica, Fifth Third - Regional lender Comerica jumped 13.7% afterFifth Third Bancorpsaid it wouldbuy its smaller peer for $10.9 billion. The transaction, which is expected to close by the end of the first quarter 2026, would create the ninth-largest U.S. bank with some $288 billion in assets, the companies said. Fifth Third shares fell 1.4%.
UiPath - UiPath was up 12.6%. The automation software company has announced a slew of partnerships with several AI heavyweights including OpenAI andNvidia. Shares gained nearly 6% last week.
Micron Technology - Morgan Stanley upgraded Micron Technology from Equalweight to Overweight on Monday, raising its price target to $220.00 from $160.00. Micron shares gained 1.7% on Monday.
Coinbase - Coinbase rose 1.6%, building on a 55% gain so far this year. Shares were boosted by the price ofBitcoinhitting a record highover the weekend. The price of the world’s largest cryptocurrency was up 2.5% over the past 24 hours to $125,740, according to CoinDesk data.
Firefly Aerospace - Space tech firm Firefly Aerospace will acquire national security technology company SciTec for about $855 million, the company said on Sunday, just months after its Nasdaq listing, honing its portfolio at a time when U.S. military and civil programs are receiving increased investor interest. Firefly shares jumped 6.3%.
Quantum Computing - Quantum Computing was down 10% after announcing that it planned to raise $750 million in an oversubscribed private placement. The company said it had entered into agreements with institutional investors for the sale of more than 37 million shares of company stock.
Rigetti Computing - Rigetti Computing, another quantum-computing company, gained 4.1% after rising 13% on Friday to close at a record of $40.06. The stock has finished higher for five consecutive sessions and has gained more than 35% over the period, according to Dow Jones Market Data. Rigetti jumped more than 28% last week, boosted by an announcement that it had secured purchase orders for two Novera quantum-computing systems.
D-Wave Quantum - D-Wave Quantum was up 7.1%. It also hit a record high Friday, gaining 12% to close at $32.70.
Constellation - Constellation Brands declined 2.5% ahead of its fiscal second-quarter numbers, expected after the close. Analysts tracked by FactSet expect the beer distributor to report adjusted earnings of $3.38 per share. Sales are forecast to decline 16% from the year-ago quarter to $2.46 billion. Coming into Monday, the stock was down 36% this year.
Critical Metals - Critical Metals shares surged 45.2% on Monday after Reuters reported the U.S. government was in talks to buy a stake in the miner. While the US government has shot down reports.
Market News
Funding Bill Falls Short Again in Senate, Extending US Government Shutdown
The Senate on Monday for a fifth time did not pass a House bill that would temporarily fund the U.S. government, deepening the government funding stalemate.
Republicans, who control both chambers of Congress, and Democrats remained at loggerheads over the terms of a funding deal as the government shutdown dragged on to its sixth day.
The 52-42 vote fell largely along party lines, as was the case during the four previous votes on the same measure.
Trump Imposing New 25% Large Truck Tariff Starting Nov. 1
US President Donald Trump said Monday that all medium- and heavy-duty trucks imported into the United States will face a 25% tariff rate starting November 1, a significant escalation of his effort to protect U.S. companies from foreign competition.
Trump last month had said heavy truck imports would face new duties on Oct. 1 on national security grounds, saying the new tariffs were to protect manufacturers from "unfair outside competition" and that the move would benefit companies such as Paccar-owned Peterbilt and Kenworth and Daimler Truck-owned Freightliner.
Under trade deals reached with Japan and the European Union, the United States has agreed to 15% tariffs on light-duty vehicles but it is not clear if they will face that rate for larger vehicles.