U.S. stocks climbed on Monday, led by strong gains in technology shares after Advanced Micro Devices announced a major deal with OpenAI. The S&P 500 rose 0.4%, the Nasdaq Composite gained 0.7%, while the Dow Jones Industrial Average slipped 0.2%.
The rally came even as the U.S. government shutdown continued to weigh on sentiment. The shutdown has delayed key economic reports, including the crucial nonfarm payrolls data. With official figures on hold, investors have turned their attention to private surveys, which have painted a worrying picture of slower business activity and stubborn inflation.
The absence of new government data adds to the uncertainty ahead of the Federal Reserve’s next meeting in October. Despite this, markets still widely expect another interest rate cut, according to CME’s FedWatch Tool. Meanwhile, political tensions persist in Washington as Republicans and Democrats remain locked in disagreement over healthcare. A White House official warned on Sunday that layoffs of federal workers could begin soon if President Trump concludes that negotiations are at a dead end.
The day’s biggest market mover was Advanced Micro Devices. AMD’s stock soared 29% after the chipmaker revealed a long-term partnership with OpenAI to supply artificial intelligence processors. The deal could generate tens of billions of dollars in annual revenue and reportedly includes an option for OpenAI to buy up to 10% of AMD’s shares.
Analysts at Wedbush called the agreement a huge win for AMD, saying it places the company “right at the heart of the AI spending boom.” The partnership involves deploying hundreds of thousands of AMD’s GPUs over several years, beginning in the second half of 2026. OpenAI also plans to build a massive one-gigawatt data center powered by AMD’s upcoming MI450 chips starting next year.
Elsewhere in the market, Constellation Brands was set to release its latest earnings report after the closing bell. The beverage company has been under pressure from higher aluminum tariffs and weaker consumer demand for beer and wine.
Shares of Critical Metals Corp. jumped over 40% on reports that the Trump administration may take an ownership stake in the company, which is developing a major rare earth project in Greenland. A deal could give the U.S. access to one of the world’s largest untapped rare earth deposits, a market currently dominated by China.
Starbucks also traded higher after the company announced plans to close several North American stores to reduce costs as part of its turnaround efforts. Tesla rose 4% amid reports that it could be exempt from auto tariffs under a potential government relief plan. Investor optimism also grew after Tesla released a promotional video hinting at a possible new vehicle launch.
Overall, Monday’s trading session showed investors brushing off political gridlock and focusing on corporate moves in technology and manufacturing — with AMD’s landmark AI deal standing out as the day’s defining story.
