Wall Street Today: S&P 500 and Nasdaq Comp Set Record-High Closes on AMD and Tesla Strength
The Nasdaq Composite and S&P 500 hit new all-time closing highs Monday as key index components AMD and Tesla soared.
The $Nasdaq Composite Index (.IXIC.US)$ gained 161.16 points (0.7%) to a record 22.941.67 close, while the $S&P 500 Index (.SPX.US)$ added 24.49 ticks (0.4%) to a 6,740.28 best-ever finish.
Both indexes surpassed previous record-high closes set last week. The Nasdaq Comp also set an all-time intraday high earlier in Monday's session, although the S&P 500's Monday peak fell a bit short of an intraday best level that it set just Friday.
Meanwhile, the $Dow Jones Industrial Average (.DJI.US)$ eased 63.31 points (013%) to 46,694.97, in part because $Advanced Micro Devices (AMD.US)$ and $Tesla (TSLA.US)$aren't Dow-30 members. Additionally, key Dow-30 component $Verizon (VZ.US)$sank 5.1% Monday on word of a CEO shakeup, with Dan Schulman – former chief of $PayPal (PYPL.US)$ – taking over for outgoing CEO Hans Vestberg.
Macro
The S&P 500 and Nasdaq Composite rose in a large measure due to the big gains for Advanced Micro and Tesla.
AMD soared 23.7% after announcing a massive deal with privately held OpenAI, parent of popular artificial-intelligence tool ChatGPT.
The chip giant and OpenAI agreed to an alliance under which OpenAI will add six gigawatts of AMD's Instinct GPU over several years and also receive warrants for up to 10% of AMD's stock.
The deal gives AMD's chips a prime role in the development of AI, which Wall Street is betting will evolve into a huge new industry.
Meanwhile, TSLA rallied 5.5% after the electric-vehicle maker made some cryptic social-media posts over the weekend that some interpreted as hinting at the firm's first new-model launch in a year.
The videos appeared to show a vehicle starting up and driving in the distance, with one ending with the caption "10/7" – Tuesday's date.
Separately, $Gold (LIST2110.US)$ hit a new record high on continued uncertainty surrounding the U.S. government shutdown, which entered its sixth day Monday with no sign Congressional Democrats and Republicans are prepared to end it.
The stalemate sent $Gold Futures (DEC5) (GCmain.US)$ up as much as 2.2% to a $3,994.50-an-ounce all-time intraday peak on a "flight-to-safety" move.
Cryptocurrencies – which some investors see as a "flight-to-safety" investment and others see as a "risk-on" play – rose as well. For example, $Bitcoin (BTC.CC)$ gained 2.9% to a $126,279.63 all-time intraday high as of 3 p.m. ET.
Moo-vers
Investors' generally positive move extended to the "Magnificent Seven" stocks, which mostly rose during Monday's session.
$Tesla (TSLA.US)$led the Mag-7 higher with its 5.5% rally, followed by $Microsoft (MSFT.US)$ (up 2.2%), $Alphabet-A (GOOGL.US)$ (2.1% better), $Meta Platforms (META.US)$ (which added 0.7%) and $Amazon (AMZN.US)$ (0.6% stronger).
Elsewhere on Wall Street, Monday's other notable percentage decliners included:
-- $Applovin (APP.US)$, which shed 14%. The AI-powered marketing platform fell in the session's last few minutes after Bloomberg News reported that the U.S. Securities and Exchange Commission has probed the firm over its data-collection practices.
-- $Quantum Computing (QUBT.US)$ , down 10%. QUBT fell on word that it's agreed to sell some $750 million of new stock to institutional investors through a private placement. The move should dilute current shareholders.
-- $Lithium Americas (LAC.US)$, off 6.5%. LAC pulled back after briefly hitting a three-year high earlier Monday on continued investor enthusiasm for the lithium-mining stock. Shares had risen more than 200% in the less than two weeks between their $2.96 Sept. 23 session low and their $9.46 three-year high earlier Monday.
Conversely, Monday's significant percentage gainers included:
-- $Critical Metals (CRML.US)$, up 45.2%. The mining firm, which is developing a rare-earth-metals project in Greenland, soared after Reuters reported that U.S. President Donald Trump's administration is interested in acquiring a stake in the firm. The White House has recently discussed taking stakes in several mining firms that produce key industrial metals to develop alternatives to China's rare-earth exports.
-- $Archer Aviation (ACHR.US)$, 17.9% better. Air-taxi firms like ACHR and $Joby Aviation (JOBY.US)$ (up 7.2%) rose after Barron's reported that some investors are interpreting Tesla's video as referring to a new TSLA plane or drone, which could help attract investors to the nascent air-taxi industry.
-- Select crypto-related stocks, which gained ground amid cryptocurrencies' rally. Winners included crypto-friendly data-center firm $IREN Ltd (IREN.US)$ (up 14.4%) and Ethereum-focused crypto company $Bitmine Immersion Technologies (BMNR.US)$ (which gained 11.6%). BMNR also rose on word that it added some $800 million of $Ethereum (ETH.CC)$ to its holdings last week, bringing the total to about $13 billion.
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors' financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Jerry Kronenberg
Director of Financial Content
Former top editor at Seeking Alpha, Fidelity.com, TheStreet.com and UPI.
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