Traders work on the ground on the New York Stock Exchange (NYSE) in New York City, U.S., August 26, 2025.
Brendan McDermid | Reuters
The S&P 500 rose on Monday as Wall Street regained a few of its footing after per week by which the factitious intelligence commerce misplaced a little bit of steam.
The broad market index climbed 0.26% to complete at 6,661.21, and the Nasdaq Composite superior 0.48% to shut at 22,591.15. The Dow Jones Industrial Average settled up 68.78 factors, or 0.15%, at 46,316.07.
AI chip darling Nvidia noticed beneficial properties after skepticism across the AI commerce put pressure on the broader stock market final week. Some merchants even questioned whether there was enough energy to energy an infrastructure plan between Nvidia and OpenAI. Nvidia closed round 2% increased. Other AI shares like Advanced Micro Devices and Micron Technology added greater than 1% and greater than 4%, respectively.
Shares of Electronic Arts jumped 4.5% after the online game firm introduced that it may be taken private in a $55 billion deal. U.S. mergers and acquisitions which have been introduced have surpassed $1 trillion this yr, up 29% from the identical time a yr in the past, in line with Goldman Sachs.
Last week’s cracks within the enthusiasm surrounding the AI buildout — a key pillar of the bull market rally — despatched U.S. shares into the pink, with the S&P 500 recording its worst weekly efficiency since Aug. 1. The Nasdaq additionally posted its weakest week since early August, and the Dow suffered its first loss in three weeks.
But Venu Krishna, head of U.S. fairness technique at Barclays, stated that capital expenditures within the AI trade are nonetheless offering a lift to the market.
“The AI capex story is showing no signs of slowdown. Moreover, other industries have also been benefiting from the tidal wave of AI infrastructure spend,” he stated in a notice on Monday. “Concentration warrants some caution, but with AI gaining momentum as the focal point of global growth, S&P 500 should be well-positioned vs. peers given its Tech-heavy sector mix.”
All eyes are watching for a potential shutdown of the federal authorities as this week’s funding deadline looms. The Labor Department stated it should not release any data, together with the September nonfarm payrolls report that’s slated for launch Friday, if a shutdown is not averted. Additionally, President Donald Trump told NBC News over the weekend that mass firings of federal staff might happen if a shutdown had been to happen.
“We are going to cut a lot of the people that … we’re able to cut on a permanent basis,” the president stated, including that he’d “rather not do that.”
Government shutdowns have historically not impacted markets much, however sentiment might take a success if any delays across the launch of key financial information muddy the rate of interest outlook for the Federal Reserve.
The market remains to be poised for modest beneficial properties for the month of September. The S&P 500 has elevated greater than 3% this month, whereas the Dow has risen almost 2%. The tech-heavy Nasdaq has been the outperformer with a greater than 5% rally.