US markets opened the week on a mixed note, with the S&P 500 and Nasdaq notching fresh record highs even as the Dow slipped. The S&P 500 climbed 0.36 per cent to close at 6,740.28, while the tech-heavy Nasdaq Composite advanced 0.71 per cent to 22,941.67. The Dow Jones Industrial Average slipped 63 points, or 0.14 per cent, to 46,694.97, as weakness in Sherwin-Williams and Home Depot weighed on the index.
The small-cap Russell 2000 also made history, crossing 2,500 for the first time before finishing 0.4 per cent higher at 2,486.36.
Merger and acquisition activity lifts sentiment
Optimism around corporate dealmaking drove much of the momentum. Comerica shares surged nearly 14 per cent after Fifth Third Bancorp struck a US$10.9bn all-stock agreement to acquire the regional bank. The deal will create the ninth-largest U.S. bank by assets. The broader regional banking sector gained as investors anticipated further consolidation, with the SPDR S&P Regional Banking ETF up 1 per cent.
AMD’s blockbuster rally on AI partnership
Technology shares were at the centre of the action. AMD shares soared almost 24 per cent after unveiling a long-term partnership with Sam Altman’s OpenAI. The deal involves multi-year use of AMD graphics processors and could eventually see OpenAI acquire a 10 per cent stake in the chipmaker. Rival Nvidia retreated on the news.
Government shutdown and Federal Reserve outlook
Investors looked past the U.S. government shutdown, now into its second week, which has delayed key data releases including the September jobs report.
Markets are now awaiting commentary from Federal Reserve officials, with Governor Stephen Miran speaking Wednesday and Chair Jerome Powell scheduled for Thursday.
Local market
Australian shares are expected to open modestly higher, with futures pointing to a 10-point gain for the S&P/ASX 200.
Meanwhile, gold hit a fresh record near US$4,000 an ounce on expectations of U.S. rate cuts and demand for safe havens during the shutdown. In the domestic calendar, Westpac releases its latest consumer confidence survey later this morning.
