The U.S. stock market concluded Monday with a mixed performance as investors remained focused on artificial intelligence (AI) developments, particularly within the technology sector. The Nasdaq Composite rose by 0.46% to close at 23,834.72, while the S&P 500 edged up 0.17% to finish at 6,851.97. Conversely, the Dow Jones Industrial Average faced pressure, slipping 226 points, or 0.48%, ending the day at 47,336.68.
A notable surge in AI-related stocks captured investor attention. Amazon’s shares jumped 4% following the announcement of a substantial $38 billion partnership with OpenAI, a move that signals its commitment to expanding into generative AI. This collaboration is anticipated to drive demand for technology, specifically hundreds of thousands of GPUs from Nvidia. As a result, chipmakers experienced a rally, with Micron Technology gaining nearly 5% and Nvidia adding 2%. The VanEck Semiconductor ETF also saw a positive trend, increasing by about 1%. Additionally, shares of Iren soared 11% after securing a $9.7 billion multiyear data center deal with Microsoft.
Nvidia’s upward momentum continued following Microsoft’s acquisition of export licenses from the Trump administration for shipping AI chips to the United Arab Emirates (UAE), part of a broader $15.2 billion investment plan by 2029. Despite the apparent excitement in tech stocks, broader market participation remained weak, with over 300 S&P 500 companies closing lower. Analysts highlighted that a select group of companies—dubbed the “Magnificent Seven,” which includes Nvidia, Microsoft, Google, Amazon, and Palantir—are driving the majority of gains in the AI sector, controlling critical infrastructure and market demand.
On the earnings front, the third quarter continued to show strength. More than 300 S&P 500 companies have reported results, with over 80% exceeding expectations, according to FactSet. Bank of America anticipates a year-over-year earnings growth of 12%, marking the fourth consecutive quarter of double-digit increases. UBS analysts maintain a bullish outlook, asserting that the current bull market still has room for further gains despite looming valuation concerns.
In the commodities sector, rare earth miners faced declines after the White House confirmed that China would lift export restrictions on critical minerals as part of a trade truce with President Trump. MP Materials decreased by 7%, while USA Rare Earth saw a drop of 14%. Other companies in this sector also experienced significant losses.
Tesla captured attention as Deutsche Bank raised its price target for the electric vehicle manufacturer to $470, underscoring optimism around its upcoming robotaxi rollout. In the banking sector, Wells Fargo increased its target for JPMorgan Chase to $350 per share, likening its potential to that of Nvidia in technology.
Amid mixed results across various sectors, energy-related stocks continued to feel pressure from Treasury yields hovering around 4.58%, affecting rate-sensitive stocks like real estate. However, the Philadelphia Semiconductor Index surged 1.4%, marking a robust start to November, which historically sees an average gain for U.S. equities.
Looking ahead, the market is poised to monitor upcoming earnings reports from major companies like Palantir, Disney, Uber, and Rivian, as well as comments from Federal Reserve officials. Despite a downturn in the Dow, the overall market sentiment remains optimistic, buoyed by strong corporate profits and advancements in AI technology.
