Tech leads gains as OpenAI-AMD deal boosts sentiment
U.S. stock indexes opened the week with mixed results. The S&P 500 and Nasdaq moved higher, buoyed by strong performance in the tech sector, while the Dow Jones Industrial Average slipped due to declines in telecom and packaging stocks.
The standout performer of the day was Advanced Micro Devices (AMD), which jumped nearly 30% after announcing a major partnership with OpenAI. The deal includes a potential 10% stake by the AI firm in AMD, significantly boosting investor confidence and pushing shares near their record close.
Verizon sinks on leadership change
Verizon Communications (VZ) was the Dow’s worst performer and among the biggest laggards in the S&P 500. The company named former PayPal CEO Dan Schulman as its new chief executive, a move that unsettled investors. Shares fell sharply following the announcement.
Packaging companies also faced pressure. International Paper (IP) and Smurfit Westrock (SW) both declined after competitor Mondi issued a profit warning due to difficult market conditions in the sector.
Tesla, Critical Metals, and Comerica rally
Tesla (TSLA) rose on investor speculation that a lower-cost model could be revealed during a scheduled event Tuesday. Analysts see the move as key to expanding the automaker’s market share.
Critical Metals (CRML) shares skyrocketed following reports that the Trump administration is considering acquiring a stake in the rare earth mining firm. The strategic move would aim to secure domestic supply chains for critical minerals used in defense and tech industries.
In banking, Comerica (CMA) surged after Fifth Third Bancorp (FITB) announced a $10.9 billion all-stock acquisition deal. The merger would expand Fifth Third’s footprint and boost its scale in key U.S. markets.
Commodities and currencies on the move
Gold prices hit a new all-time high amid investor demand for safe-haven assets. Meanwhile, oil prices climbed after OPEC and its allies agreed to a modest production increase, signaling cautious optimism about global demand.
The yield on the U.S. 10-year Treasury note rose, reflecting shifting expectations around inflation and interest rates. The U.S. dollar gained ground against the euro, pound, and yen, supported by stronger economic data and investor positioning.
