Traders work on the ground on the New York Stock Exchange in New York City, U.S., Sept. 11, 2025.
Brendan McDermid | Reuters
The S&P 500 and Nasdaq Composite closed at file highs on Monday, spurred by optimism about elevated mergers and acquisitions exercise after two main offers have been introduced.
The broad market S&P 500 gained 0.36% to finish the day at 6,740.28, whereas the tech-heavy Nasdaq superior 0.71% to complete at 22,941.67. The Dow Jones Industrial Average, nonetheless, fell 63.31 factors, or 0.14%, to shut at 46,694.97, weighed down by a decline in shares of Sherwin-Williams and Home Depot.
The Russell 2000 closed at a file excessive after crossing 2,500 for the first time. It settled up 0.4% at 2,486.36.
The S&P 500 and Nasdaq noticed a lift from AMD leaping nearly 24% after the corporate reached a deal with Sam Altman’s AI chief that would finally find yourself giving the ChatGPT firm a ten% stake within the chipmaker. AMD will use sure graphics processing models rolled out over a number of years. Nvidia, AMD’s main competitor in graphics processors, got here below strain following that announcement.
Additionally, Comerica shares rallied almost 14% after Fifth Third Bancorp reached a deal to purchase the man regional financial institution for $10.9 billion in an all-stock transaction. The merger will kind the ninth-largest U.S. financial institution by belongings. The SPDR S&P Regional Banking ETF jumped 1% on expectations extra offers have been forward within the house. Overall M&A has been selecting up, including to the animal spirits seen within the inventory market this 12 months.
“There is clearly an optimistic view of growth in the long term,” mentioned Brian Mulberry, senior consumer portfolio supervisor at Zacks Investment Management. “There is a more business (and bank) friendly regulatory environment and everyone expects rates to be much lower by this time next year, perhaps even as much as 1.25% lower, making the return on these deals much better and faster.”
Investors have been wanting previous issues in regards to the present U.S. authorities shutdown, which has now dragged on right into a second week after lawmakers as soon as once more failed to achieve a deal on funding to maintain the federal government open. The shutdown delayed the discharge of key financial knowledge — together with the September jobs report — which was initially due Friday.
“As of now, the stock market is shrugging off the government shutdown, and is more focused on earnings optimism and the prospect of additional Federal Reserve rate cuts,” mentioned Robert Edwards, chief funding officer at Edwards Asset Management.
“We would consider any notable market dip from the shutdown as an ‘Investor Prime Day’ shopping opportunity,” he additionally mentioned. “Even with the government shutdown and worries about the labor market, we believe the S&P 500 is on track to cross 7,000 by year-end.”
Despite the information blackout, a number of Federal Reserve officers are slated to talk this week, together with Fed Governor Stephen Miran on Wednesday and Chair Jerome Powell on Thursday.
The S&P 500 and Nasdaq Composite are coming off their fourth weekly advance in 5 weeks, rising 1.1% and 1.3%, respectively. The Dow rose for the third time in 4 weeks, advancing 1.1%.