Dow, S&P 500 Soar! Nvidia's OpenAI Deal Fuels Market Rally
U.S. stocks climbed higher on Monday, continuing Wall Street's record-breaking performance, propelled by the strength of Big Tech giants. The Dow Jones Industrial Average (^DJI) edged up by 0.1%, while the S&P 500 (^GSPC) gained approximately 0.4%. Leading the charge was the tech-heavy Nasdaq Composite (^IXIC), which surged 0.6% following a robust week for stocks, driven by investor enthusiasm over the Federal Reserve's return to easing policies.
Nvidia (NVDA) stock experienced a significant surge, nearing its all-time high, after the company announced a planned investment of up to $100 billion in OpenAI over the next few years. Oracle (ORCL) shares also saw a jump following the news. Furthermore, the White House confirmed its participation in a consortium of investors set to oversee TikTok's U.S. operations.
Tesla (TSLA) was on track to close the day at a 2025 high, with investors focusing on the company's advancements in self-driving technology and upcoming product releases.
Gold (GC=F) reached a new all-time high on Monday, exceeding $3,750, fueled by expectations that the Fed will implement two more rate cuts before the end of 2025. However, Bitcoin (BTC-USD) and other cryptocurrencies experienced a downturn as traders liquidated over $1.5 billion in bullish positions.
Markets are anticipating Friday's release of the Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, to assess these expectations. A weaker-than-expected reading could increase the likelihood of another quarter-point rate cut in October. Wall Street anticipates the September PCE data will indicate persistent, but manageable, price pressures, allowing the Fed to maintain its current course.
Investors will also be closely monitoring upcoming remarks from a series of Fed speakers, including Chair Jerome Powell and Stephen Miran, the newly appointed Fed governor backed by President Trump. Miran stated on Monday that he believes interest rates should be approximately 2 percentage points lower. Powell is scheduled to speak on