Stock Market Today – Nasdaq 22,941 & S&P 500 6,740 Hit Records on AMD’s AI Surge and Gold’s $4,000 Charge

Wall Street Extends AI Frenzy as S&P 500 and Nasdaq Break Records

U.S. equities opened the week on a euphoric note, led once again by the technology sector and a new wave of merger momentum. The S&P 500 (^GSPC) advanced 0.36% to 6,740.28, and the Nasdaq Composite (^IXIC) climbed 0.71% to 22,941.67, both finishing at fresh record closes. The Dow Jones Industrial Average (^DJI) lagged, easing 0.14% to 46,694.97, weighed by weakness in Sherwin-Williams (NYSE:SHW) and Home Depot (NYSE:HD).

The rally’s driving engine was Advanced Micro Devices (NASDAQ:AMD), whose shares skyrocketed nearly 24% to $203.71 after unveiling a multibillion-dollar partnership with OpenAI (OPAI.PVT). The agreement commits OpenAI to deploy 6 gigawatts of AMD Instinct GPUs across several hardware generations, granting it warrants for up to 10% of AMD’s equity if rollout milestones are met. This not only injects tens of billions of new revenue potential for AMD but also challenges Nvidia (NASDAQ:NVDA), which slipped 1.1% to $820.10, amid fears its AI dominance could be diluted.

AI Optimism Overwhelms Shutdown Concerns

Even as the U.S. government shutdown entered its second week, investor sentiment stayed firmly risk-on. The market shrugged off the absence of the September jobs report and instead traded on anticipation of a Federal Reserve rate cut cycle expected to start before 2026. Several Fed officials, including Governor Stephen Miran and Chair Jerome Powell, are scheduled to speak mid-week, potentially shaping expectations for the path of policy easing.

Strategists such as Ed Yardeni lifted year-end projections, citing a “slow-motion melt-up.” Yardeni now expects the S&P 500 to cross 7,000 points by December, while Evercore ISI’s Julian Emanuel maintains a bullish 7,750 target for 2026, assigning a 30% chance of a bubble scenario where the index reaches 9,000 if AI capital spending and liquidity persist.

Mergers Reignite Animal Spirits in Banking Sector

Outside tech, financials staged their own surge. Fifth Third Bancorp (NASDAQ:FITB) announced a $10.9 billion all-stock merger with Comerica (NYSE:CMA), creating the ninth-largest U.S. bank by assets at $288 billion. CMA shares rallied 13.7% to $80.20, while FITB slipped 1.4% to $43.79 as integration costs tempered enthusiasm. Analysts at Bank of America called the transaction “low risk and strategically accretive,” predicting cost synergies that could lift return on tangible equity above 15% within two years. The SPDR S&P Regional Banking ETF (NYSEARCA:KRE) added 1%, with traders betting the wave of consolidation would accelerate through 2026 as credit conditions loosen.

Record Run for Small Caps and Semiconductors

The Russell 2000 (^RUT) pushed past the symbolic 2,500 level, closing at 2,486.36 (+0.4%), reflecting revived appetite for cyclical and regional growth plays. At the same time, the Philadelphia Semiconductor Index (SOX) surged 3.4% to 6,816, its first close above the S&P 500’s level in over a year. This rare inversion underscores how AI-related infrastructure demand has turned chipmakers into the market’s new macro barometer.

Corporate Shake-Ups and Leadership Moves

Among blue-chip decliners, Verizon Communications (NYSE:VZ) dropped 5.1% to $41.44 after CEO Hans Vestberg stepped down. Former PayPal executive Dan Schulman took the helm, vowing to “redefine Verizon’s trajectory.” Investors remained skeptical given a slow wireless growth outlook and heavy capital expenditure.

Meanwhile, Tesla (NASDAQ:TSLA) climbed 3% to $453.25 following cryptic posts teasing a November 6 investor event, sparking speculation of a new EV model or robotaxi update. The stock has gained 9% year to date, rebounding from spring lows as focus shifts from vehicle sales to autonomous software revenue.

Havens Surge as Fiscal Fears Mount

While equities set records, haven assets also roared. Gold (XAU/USD) surged 1.93% to $3,984.30 per ounce, within sight of the psychological $4,000 threshold, now up 50% YTD. The rally has been driven by heavy central-bank buying, political instability from the shutdown, and a global shift toward “run-it-hot” fiscal policies. Bank of America warned of “uptrend exhaustion,” but funds continue to flow into gold ETFs as investors hedge against monetary debasement.

Bitcoin (BTC-USD) mirrored the move, settling at a record $125,481.71 (+34% YTD) after peaking intraday at $126,272.76. The cryptocurrency has become a parallel refuge, tracking both risk appetite and inflation hedging demand. Blockchain equities followed suit: Coinbase (NASDAQ:COIN) rose 1.2%, Cipher Mining (NASDAQ:CIFR) gained 4.5%, and Marathon Digital Holdings (NASDAQ:MARA) added 2%.

Global Ripples from Asia to Europe

Internationally, the Nikkei 225 (^N225) exploded 4.75% to 47,944.76, smashing records after Sanae Takaichi won Japan’s ruling party leadership race. Markets priced in more stimulus and looser monetary policy, sending the yen down 0.05% to 150.27 per USD. In contrast, France’s CAC 40 (^FCHI) fell 1.36% to 7,971.78 after Prime Minister Sébastien Lecornu’s resignation triggered political uncertainty and a spike in bond yields above Italy’s.

Sector Leaders and Losers Highlight Divergent Momentum

Healthcare stocks continued their rebound from September’s lows, with the S&P healthcare sector up 6.8% last week, its best gain since 2022. Bio-Techne (NASDAQ:TECH) and Moderna (NASDAQ:MRNA) led advances of 21% and 16%, respectively. In contrast, AppLovin (NASDAQ:APP) collapsed 14% to $550.50 after reports of an SEC probe into data-collection practices, dragging the mobile-ad segment.

Palantir Technologies (NASDAQ:PLTR) rose 3.7% to $179.53 after recovering from a Friday sell-off tied to Pentagon cybersecurity concerns. Investors see its AI defense software as integral to national security spending, which is expected to expand under the current administration.

Macro Cross-Currents Keep Investors On Edge

The U.S. 10-year Treasury yield (^TNX) rose 4 basis points to 4.16%, while the 30-year reached 4.75%, signaling persistent inflation premiums despite Fed cut expectations. The VIX Volatility Index dipped 1.68% to 16.37, reflecting complacency typical of late-cycle rallies. Oil prices firmed as well: WTI Crude (CL=F) rose 1.38% to $61.72 per barrel, and Brent (BZ=F) extended gains following OPEC+’s decision to pursue a measured output increase rather than a full supply release.

Analysts Debate AI Valuations and Potential Shake-Out

BTIG’s Jonathan Krinsky cautioned that a “small shake-out” may be imminent given overextended valuations, even as the primary trend remains bullish. Market correlations are near record highs, with returns dominated by AI megacaps. Morningstar’s Dave Sekera warned that “the market is walking a tightrope between AI-driven growth and a softening real economy.” Yet hedge-fund veteran Paul Tudor Jones called conditions ripe for a “blow-off top,” drawing parallels to 1999 but predicting a final rally before any correction.

Verdict – Market Bias Remains Bullish but Overheated

S&P 500 (^GSPC) — BUY bias short-term toward 7,000, supported by earnings resilience and liquidity, but watch for pullbacks of 2-3%.
Nasdaq (^IXIC) — BUY with Caution; AI mania remains a tailwind, yet valuations are approaching dot-com extremes.
Dow Jones (^DJI) — HOLD; industrial components lag tech momentum.
Russell 2000 (^RUT) — BUY on breakout above 2,500 as merger activity and regional banks revive.
Gold (XAU/USD) — HOLD/BUY Hedge while above $3,900 amid fiscal uncertainty.
Bitcoin (BTC-USD) — SPECULATIVE BUY toward $130,000 if momentum persists, but volatility extreme.
AMD (NASDAQ:AMD) — BUY post-OpenAI deal; valuation rich but structural catalyst strong.
Nvidia (NASDAQ:NVDA) — HOLD; leadership intact but competitive risk rising.
Fifth Third Bancorp (NASDAQ:FITB) — BUY on dip for merger synergies.
Comerica (NYSE:CMA) — HOLD after surge; premium fully priced.
Verizon (NYSE:VZ) — SELL near-term until leadership transition delivers strategy clarity.
Tesla (NASDAQ:TSLA) — BUY ahead of event catalyst, target $475.

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