NEW YORK: Wall Street stocks mostly rose early Monday as markets continued to look past a US government shutdown while focusing hopes on Japan’s new leadership and the latest big AI deal.
Shares of chip company Advanced Micro Devices soared more than 35 percent early Monday after announcing a multi-year partnership with OpenAI to develop AI data centers.
About 25 minutes into trading, the Dow Jones Industrial Average was down 0.3 percent at 46,634.61.
The broad-based S&P 500 added 0.1 percent at 6,725.48, while the tech-rich Nasdaq Composite Index advanced 0.3 percent to 22,842.60.
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The OpenAI venture with AMD marks the latest massive deal for the fast-growing artificial intelligence startup that has left markets buzzing. For now the market is not thinking too hard about how OpenAI’s various initiatives will come together.
“Very few questions are being asked about how OpenAI is actually going to pay for this commitment that they’re making to AMD,” said Steve Sosnick of Interactive Brokers.
“This company has literally hundreds of billions of dollars in commitments, but still only has annualized revenues of about $12 billion,” Sosnick said of OpenAI. “The market is taking any piece of news as purely good news.”
Hopes are also high in markets following a weekend election in Japan that left the pro-growth Sanae Takaichi poised to become prime minister this month. Takaichi has previously backed aggressive monetary easing and expanded government spending.
Among individual companies, Comerica shot up 15.4 percent after agreeing to be acquired by Fifth Third Bancorp for $10.9 billion in stock. Fifth Third fell 0.8 percent.
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