US markets were mixed on Monday as investors continued piling into artificial intelligence stocks following a wave of multibillion-dollar deal announcements. The Nasdaq Composite rose 0.4% and the S&P 500 gained 0.2%, while the Dow Jones Industrial Average slipped 272 points, or 0.6%.
Amazon shares jumped 4% after its cloud division signed a US$38bn deal with OpenAI to provide computing capacity for the chatbot developer. The partnership will rely on hundreds of thousands of Nvidia graphics processing units, fuelling another rally in chipmakers. Nvidia rose 2%, Micron gained 5%, and the VanEck Semiconductor ETF climbed about 1%.
Microsoft expands cloud capacity with Iren
In another major AI infrastructure move, Sydney-based data centre operator Iren announced a multiyear US$9.7bn deal with Microsoft, making the tech giant its largest customer. Iren’s shares surged 13.4% on the news, while Microsoft advanced on optimism about long-term AI demand.
AI leaders dominate market gains
Nvidia also benefited from news that Microsoft has secured export licences from the Trump administration to ship its chips to the United Arab Emirates, where total investment is expected to reach US$15.2bn by 2029.
Focus shifts to the RBA
Australian shares are set for a softer open, with ASX 200 futures pointing down 9 points, or 0.1%, to 8894. Investors will be focused on the Reserve Bank’s policy statement and Governor Michele Bullock’s press conference this afternoon, as markets look for clues on the outlook for interest rates.
