US stocks edged higher on Monday as Wall Street recovered from last week’s pullback in the artificial intelligence trade. The S&P 500 rose 0.26% to 6,661.21, the Nasdaq Composite added 0.48% to 22,591.15, and the Dow Jones Industrial Average gained 68.78 points, or 0.15%, to 46,316.07.
The lift came after a difficult stretch in which enthusiasm around AI stocks wavered, sending the major indexes into their weakest performance since early August.
AI leaders rebound
Nvidia rebounded about 2% after last week’s concerns that energy supply could limit its infrastructure partnership with OpenAI. Other chipmakers followed suit, with Advanced Micro Devices gaining more than 1% and Micron Technology up more than 4%. Analysts say capital expenditure in the AI sector remains robust.
M&A momentum
Away from AI, Electronic Arts surged 4.5% after announcing it will be taken private in a US$55bn deal. The move adds to a wave of corporate activity that has lifted the value of US mergers and acquisitions to more than US$1tn this year, up 29% on the same period last year, according to Goldman Sachs.
Government shutdown concerns
Markets are also weighing the risk of a US federal government shutdown later this week. If funding isn’t secured, the Labor Department will delay the release of key data, including Friday’s nonfarm payrolls report. President Donald Trump warned mass layoffs of federal workers could follow. While shutdowns have historically had little direct market impact, investors worry that missing data could cloud the Federal Reserve’s rate outlook.
Despite recent volatility, US equities remain on track for a positive September. The S&P 500 has climbed more than 3% this month, the Dow is up nearly 2%, and the Nasdaq leads with a rally of more than 5%.
ASX set for higher open
Australian shares are poised to open stronger. The SPI 200 futures point to a 16-point, or 0.2%. The move comes ahead of today’s Reserve Bank decision on interest rates, with economists expecting the cash rate to remain at 3.6%. Governor Michele Bullock will hold a press conference this afternoon, where markets will look for hints about the path forward.
Locally, building approvals for August will be released at 11:30am. Overseas, Japan reports industrial production, China posts manufacturing data, the UK updates second-quarter GDP, France issues inflation numbers, and the US releases job openings.
