Investors piled into artificial intelligence stocks again. Amazon jumped 4% after sealing a $38 billion partnership with OpenAI, signaling a deeper move into generative AI. The deal reportedly involves hundreds of thousands of Nvidia GPUs, boosting chip demand.
Chip stocks rallied. Micron Technology gained nearly 5%. Nvidia added 2%. The VanEck Semiconductor ETF (SMH) climbed about 1%. Shares of Iren, which struck a $9.7 billion multiyear data center deal with Microsoft, soared 11%.
Nvidia also advanced after Microsoft obtained Trump administration export licenses to ship its GPUs to the United Arab Emirates, part of a $15.2 billion UAE investment plan by 2029.
Beyond tech, market breadth was weak. Over 300 S&P 500 stocks ended in red, showing narrow leadership despite AI enthusiasm. Analysts flagged that “the market is rewarding the AI leaders” — Amazon, Microsoft, Google, Nvidia, and Palantir, said Gil Luria of D.A. Davidson. These firms, he noted, “control the infrastructure and the demand curve of AI.”
Third-quarter earnings season stayed strong. More than 300 S&P 500 companies have reported, and over 80% beat estimates, said FactSet. Bank of America expects Q3 earnings to grow 12% year-over-year — the fourth straight quarter of double-digit growth. The AI trade, easing US–China tensions, and solid corporate results lifted October’s market. The Nasdaq gained 4.7% in October. The S&P 500 added 2.3%. The Dow climbed 2.5%. Meanwhile, rare earth miners slid after the White House confirmed China will lift export curbs under a new Trump–Xi trade truce. MP Materials dropped 7%. USA Rare Earth fell 14%. Energy Fuels and NioCorp each lost over 10%.
Tesla gained attention after Deutsche Bank raised its target to $470, citing its robotaxi rollout. And JPMorgan earned praise from Wells Fargo, which lifted its target to $350, calling it “the Nvidia of banking.”
Despite caution from Fed’s Mary Daly about December rate moves, UBS expects more equity gains ahead, saying this bull market “still has room to run.”
US stock market today: Nasdaq climbs as AI megadeals lift Wall Street
Nasdaq Composite rose 0.46% to close at 23,834.72, driven by gains in big tech and semiconductor shares. The S&P 500 inched up 0.17% to finish at 6,851.97, while the Dow Jones Industrial Average dropped 226.19 points, or 0.48%, to end at 47,336.68.
Amazon’s stock jumped 4% after the company announced a $38 billion partnership with OpenAI. The deal will use hundreds of thousands of Nvidia GPUs, signaling Amazon’s aggressive expansion into AI infrastructure.
AI-linked stocks surged on the news. Micron Technology gained nearly 5%, leading chipmakers higher, while Nvidia rose about 2%. The VanEck Semiconductor ETF (SMH) added nearly 1%. Shares of Iren surged 11% after signing a $9.7 billion multiyear deal with Microsoft to supply Nvidia’s new GB300 GPUs.
Nvidia’s rally extended after Microsoft confirmed it had secured export licenses from the Trump administration to ship advanced AI chips to the United Arab Emirates. Microsoft said its total UAE investment will reach $15.2 billion by 2029, underscoring its growing role in global AI infrastructure.
Market breadth remains weak despite AI boom
Outside of AI and tech, broader market participation stayed soft. More than 300 S&P 500 companies closed lower Monday, reflecting weak breadth. Despite record highs for some indices, analysts warned that a handful of “Magnificent Seven” stocks — including Nvidia, Microsoft, Google, Amazon, and Palantir — are capturing most of the AI-driven gains.
“The market is rewarding the key AI players today,” said Gil Luria, head of technology research at D.A. Davidson. “They’re leading the next computing cycle and capturing nearly all the value in AI. They have the cash, infrastructure, and demand momentum to stay ahead.”
Strong earnings season continues to support sentiment
Corporate earnings have remained robust. So far, more than 300 S&P 500 companies have reported results for the third quarter, with over 80% beating expectations, according to FactSet.
Bank of America said the season is tracking 12% year-over-year earnings growth, marking the fourth consecutive quarter of double-digit expansion. Analysts at UBS expect the market’s rally to continue, even amid valuation concerns.
“Despite high valuations and policy uncertainty, this bull market still has room to run,” said Ulrike Hoffmann-Burchardi, global head of equities at UBS Financial Services.
Trade truce hits rare earth miners
Rare earth mining stocks slumped after the White House announced that China will lift its export restrictions on critical minerals as part of a trade truce reached between President Donald Trump and President Xi Jinping.
MP Materials dropped 7%, USA Rare Earth and Energy Fuels both tumbled about 14%, and NioCorp Developments lost 11%. The White House said China agreed to suspend sweeping export curbs and issue general licenses, removing controls imposed in April 2022 and October 2024.
President Trump told CBS’s 60 Minutes“We got no rare earth threat — that’s gone, completely gone.”
Tesla, JPMorgan, and Costco gain Wall Street attention
Deutsche Bank raised its price target on Tesla to $470 from $440, citing rising optimism around the company’s robotaxi rollout in key U.S. cities. Tesla shares have gained 16% year to date.
Wells Fargo lifted its target for JPMorgan Chase to $350 per share and maintained an overweight rating, calling it the “Nvidia of banking.” The firm cited JPMorgan’s $18 billion technology spend and AI adoption as major growth drivers. The bank’s stock is up 29% this year.
Oppenheimer upgraded Costco to a top pick, citing strong value appeal amid a mixed spending backdrop. The firm expects a 15% upside from the retailer’s current levels, forecasting steady gains through 2026.
Top Gainers:
- Apple (+2%)
- Nvidia (+1.8%)
- Tesla (+3%)
- Amazon (+1.2%)
- Alphabet (+0.9%)
Top Losers:
- Chevron (-1.6%)
- Boeing (-1.2%)
- Caterpillar (-0.8%)
- 3M (-0.7%)
- Goldman Sachs (-0.6%)
Yields near 4.58% kept pressure on cyclicals. The S&P 500 is up 14% YTD, and the Nasdaq 22%, with AI and chip stocks driving November’s rally.
October was strong for Wall Street. The S&P 500 gained 2.3%, the Dow added 2.5%, and the Nasdaq climbed 4.7%. Analysts say November could extend those gains — historically, it’s the best month for U.S. equities, with an average 1.8% rise, according to the Stock Trader’s Almanac.
Upcoming earnings from Palantir and AMD will test the resilience of the AI trade, while investors will also monitor remarks from San Francisco Fed President Mary Daly, who signaled an “open-minded” stance ahead of the December rate decision.
Overall, the market remains optimistic — fueled by AI megadeals, strong profits, and easing trade tensions.
Stocks moved unevenly Monday as investors piled into artificial intelligence and tech names. Traders continued to digest strong October jobs data that reinforced the view the Federal Reserve may delay rate cuts until early 2026. Treasury yields stayed near 4.58%, pressuring rate-sensitive sectors like real estate.
Market breadth favored decliners on the NYSE, yet large-cap growth stocks held firm. The Philadelphia Semiconductor Index jumped 1.4%, marking its best start to November since 2021.
Investors now await fresh commentary from Fed officials later this week and key corporate earnings from Disney, Uber, and Rivian. Despite the Dow’s dip, Wall Street’s broader tone stayed upbeat on AI momentum.