The S&P 500 reached fresh record highs on Monday, powered by strong gains in technology stocks and renewed enthusiasm for artificial intelligence. The benchmark index closed 0.44% higher at 6,693.75, while the Nasdaq Composite jumped 0.70% to 22,788.98. The Dow Jones Industrial Average added 66 points, or 0.14%, to settle at 46,381.54. All three indices set new intraday records during the session before finishing at all-time closing highs.
Nvidia leads the charge
Nvidia was the standout performer, advancing nearly 4% after announcing a US$100bn investment in OpenAI to expand data centres and strengthen AI infrastructure. The deal reinforced expectations that artificial intelligence will remain a dominant driver of earnings and market momentum.
Oracle also gained ground, climbing 6% after appointing Clay Magouyrk and Mike Sicilia as co-CEOs, while long-time leader Safra Catz transitions to executive vice chair. The rally added to Oracle’s 45% surge this month. Apple joined the winners, rising more than 4% as investors bet on stronger-than-expected iPhone sales, pushing its market value closer to the US$4tn mark.
Risks on the horizon
Despite the upbeat session, concerns about a looming US government shutdown weighed on sentiment. The Senate last week rejected proposals from both parties to fund the government, leaving lawmakers with a September 30 deadline. Senate Democratic Leader Chuck Schumer urged President Donald Trump to negotiate with Democrats to avoid disruption.
Rate cuts and inflation watch
The rally follows last week’s decision by the Federal Reserve to cut interest rates for the first time since December. Traders are now pricing in two more quarter-point cuts by year-end, according to CME Group’s FedWatch tool.
Investors will turn this week to the Fed’s preferred inflation gauge, the personal consumption expenditures price index, which is expected to confirm subdued inflationary pressures. September purchasing managers’ indices from the US and Europe will also provide further clues on the global growth outlook.
Local outlook
Australian shares are set to follow Wall Street’s lead. Futures point to the S&P/ASX 200 opening 19 points, or 0.2%, higher at the start of trade, with blue-chip tech stocks once again in focus.
