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The S&P 500 Index<\/a> (SPY<\/a>) closed up +0.36% on Monday, while the Dow Jones Industrials Index<\/a> (DIA<\/a>) fell by -0.14%. The Nasdaq 100 Index<\/a> (QQQ<\/a>) saw a notable increase, closing up +0.78%. Additionally, December E-mini S&P futures (ESZ25<\/a>) rose +0.37%, and December E-mini Nasdaq futures (NQZ25<\/a>) increased by +0.75%.<\/p>\n Overall, stock indexes primarily settled higher on Monday, with the Nasdaq 100 achieving a new all-time high. A significant contributor to this surge was Advanced Micro Devices<\/strong>, which skyrocketed over 23% following its multi-billion-dollar deal with OpenAI for AI infrastructure. This partnership has intensified excitement in the AI sector, as investors anticipate that growth in artificial intelligence will translate into substantial corporate profits. The market sentiment is further buoyed by optimism surrounding a resilient US economy and expectations of additional easing from the Federal Reserve.<\/p>\n Join 200K+ Subscribers: <\/span> Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.<\/a><\/p>\n However, rising bond yields limited stock gains, with the 10-year T-note yield climbing +4 basis points to 4.16%. Additionally, Verizon Communications experienced a decline of over -5%, impacting the Dow Jones Industrials. The ongoing US government shutdown, now in its second week, has dampened market sentiment and delayed critical economic reports.<\/p>\n This government shutdown has resulted in postponed releases of essential data, including last Friday’s monthly payroll report. A prolonged shutdown could also affect the government’s inflation data, scheduled for release on October 15. The White House has cautioned that extended shutdowns may lead to widespread employee dismissals in government programs that do not align with President Trump’s priorities. Bloomberg Economics estimates that around 640,000 federal workers could be furloughed, potentially increasing jobless claims and pushing the unemployment rate up to 4.7%.<\/p>\n The ongoing shutdown, along with expectations of further Fed easing and political uncertainties in France and Japan, is driving investors toward safe-haven assets like gold and Bitcoin. In France, Prime Minister Lecornu’s resignation following President Macron’s cabinet reshuffle has raised concerns about the Eurozone’s second-largest economy. Meanwhile, in Japan, Sanae Takaichi, a supporter of easy fiscal and monetary policy, won the election to lead the ruling LDP party, potentially positioning her as the next prime minister. Both gold and Bitcoin surged to record highs on Monday, reflecting a shift as investors seek refuge from fiat currencies.<\/p>\n This week, market attention will be focused on developments regarding tariffs, trade, and efforts by lawmakers to resolve the ongoing US government shutdown. On Wednesday, the minutes from the September 16-17 FOMC meeting will be released, followed by Fed Chair Powell’s welcoming remarks at a Fed Community Bank Conference on Thursday. On Friday, the University of Michigan’s October consumer sentiment index is expected to decline by -1.1 to 54.0.<\/p>\n Rising expectations for corporate earnings provide a bullish backdrop for stocks. According to Bloomberg Intelligence, over 22% of S&P 500 companies have issued guidance for Q3 earnings that are anticipated to exceed analysts’ expectations, marking the highest rate in a year. However, Q3 profits are projected to rise by only +7.2%, the smallest increase in two years, with sales growth expected to slow to 5.9% from 6.4% in Q2.<\/p>\n Markets are currently pricing in a 95% likelihood of a -25 basis point rate cut at the upcoming FOMC meeting on October 28-29.<\/p>\n Internationally, stock markets are mixed. The Euro Stoxx 50 is down -0.35%, while China’s Shanghai Composite is closed for the week-long Lunar New Year holiday. Japan’s Nikkei Stock 225 surged to a record high, closing up +4.75%.<\/p>\n Interest Rates<\/strong><\/p>\n December 10-year T-notes (ZNZ5<\/a>) closed down by -9 ticks, with the 10-year T-note yield rising +4.5 basis points to 4.164%. T-note prices faced pressure from stock strength and supply concerns, as the Treasury plans to auction $119 billion in T-notes and T-bonds this week, starting with a $58 billion auction of 3-year T-notes on Tuesday. However, losses in T-notes are mitigated by the potential economic weakening from the prolonged US government shutdown.<\/p>\n European government bond yields also increased on Monday, with the 10-year German bund yield rising +2.1 basis points to 2.719%. The 10-year UK gilt yield reached a one-week high of 4.751%, finishing up +4.6 basis points.<\/p>\n In the Eurozone, August retail sales rose +0.1% month-over-month, aligning with expectations. The October Sentix investor confidence index increased by +3.8 to -5.4, surpassing expectations of -7.7. ECB President Lagarde stated that inflation in the Eurozone remains close to the 2% target, with expectations for economic improvement in 2026. Swaps indicate a mere 1% chance of a -25 basis point rate cut by the ECB at its next policy meeting on October 30.<\/p>\n US Stock Movers<\/strong><\/p>\n Advanced Micro Devices (AMD<\/a>) led the charge, closing up more than +23% after signing a deal with OpenAI to deploy 6 gigawatts of AMD GPUs over several years, along with a warrant for up to 160 million shares of AMD stock. Other notable gainers included Super Micro Computer (SMCI<\/a>) up more than +5%, and Palantir Technologies (PLTR<\/a>), KLA Corp (KLAC<\/a>), ARM Holdings Plc (ARM<\/a>), and Applied Materials (AMAT<\/a>) all closing up more than +3%. Lam Research (LRCX<\/a>) and Marvell Technology (MRVL<\/a>) also saw gains of more than +2%.<\/p>\n Cryptocurrency-related stocks rallied as Bitcoin’s price surged over +2% to a record high above $126,000. Companies like Coinbase Global (COIN<\/a>), Galaxy Digital (GLXY<\/a>), MARA Holdings (MARA<\/a>), Strategy (MSTR<\/a>), and Riot Platforms (RIOT<\/a>) all closed up more than +1%.<\/p>\n Critical Metals Corp (CRML<\/a>) surged over +46% after reports indicated discussions about the Trump administration potentially taking a stake in the company. Comerica (CMA<\/a>) closed up more than +13% following Fifth Third Bancorp’s agreement to acquire the company for approximately $10.9 billion in stock. Firefly Aerospace (FLY<\/a>) also saw gains of over +6% after announcing its acquisition of SciTec for about $855 million in cash and stock.<\/p>\n Salesforce (CRM<\/a>) closed up more than +2%, leading gainers in the Dow Jones Industrials after being mentioned at a ChatGPT annual developers event. Intellia Therapeutics (NTLA<\/a>) also closed up more than +2% after receiving an upgrade from Citizens JMP Securities LLC.<\/p>\n On the downside, AppLovin (APP<\/a>) led the S&P 500 and Nasdaq 100 losers, closing down more than -14% amid reports of an SEC investigation into its data-collection practices. Abercrombie & Fitch (ANF<\/a>) fell over -7% after JPMorgan Chase downgraded the stock. Verizon Communications (VZ<\/a>) led the Dow’s decline, closing down more than -5% following the announcement of a CEO change.<\/p>\n AT&T (T<\/a>) closed down more than -4% after a downgrade by Scotiabank. International Paper (IP<\/a>) and Dollar Tree (DLTR<\/a>) both closed down more than -2% following downgrades from analysts.<\/p>\n Nvidia (NVDA<\/a>) closed down more than -1% after competitor AMD announced a significant deal with OpenAI, raising concerns about Nvidia’s market position in AI chips.<\/p>\n Earnings Reports (10\/7\/2025)<\/strong><\/p>\n Upcoming earnings reports include McCormick & Co Inc\/MD (MKC), Penguin Solutions Inc (PENG), and TuHURA Biosciences Inc (HURA).<\/p>\n More news from Barchart<\/p>\n The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.<\/p>\n","protected":false},"excerpt":{"rendered":" The S&P 500 Index (SPY) closed up +0.36% on Monday, while the Dow Jones Industrials Index (DIA) fell by -0.14%. The Nasdaq 100 Index (QQQ) saw a notable increase, closing up +0.78%. Additionally, December E-mini S&P futures (ESZ25) rose +0.37%, and December E-mini Nasdaq futures (NQZ25) increased by +0.75%. Overall, stock indexes primarily settled higher […]<\/p>\n","protected":false},"author":1,"featured_media":2407,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59],"tags":[],"class_list":["post-2406","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts\/2406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/comments?post=2406"}],"version-history":[{"count":0,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts\/2406\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/media\/2407"}],"wp:attachment":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/media?parent=2406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/categories?post=2406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/tags?post=2406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n On the date of publication, Rich Asplund<\/a> did not hold positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes.
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