Can anything shut down the Gold rally?
Investing.com - U.S. stock markets opened higher on Monday, with investors maintaining their expectations for upcoming interest-rate cuts this month despite an ongoing U.S. government shutdown, while shares of Advanced Micro Devices spike on a deal with artificial intelligence-darling OpenAI.
By 09:33 ET (13:33 GMT), the benchmark S&P 500 had climbed by 20 points, or 0.3%, the tech-heavy Nasdaq Composite had gained 118 points, or 0.5%, and the blue-chip Dow Jones Industrial Average had risen by 65 points, or 0.1%.
Crucially, the partial shutdown of the U.S. government has led to the delay of official economic data, including the all-important nonfarm payrolls report.
These postponements have led to heightened scrutiny of private-label economic figures over the last few days. Trackers of private employment and business activity, in particular, signaled "darkening storm clouds" and elevated inflation ahead, analysts at Vital Knowledge said in a note.
The absence of official data has also taken on more importance with the Fed set to unveil a fresh interest rate decision in October. Despite the lack of government numbers, markets are still widely anticipating that the central bank will opt to roll out more borrowing cost reductions at its next policy meeting, according to CME’s FedWatch Tool.
All the while, the shutdown drags on, with Republicans and Democrats at odds over healthcare assurances. On Sunday, a top White House official warned that mass layoffs of federal workers will begin if President Donald Trump decides that talks with congressional Democrats to end the shutdown are "absolutely going nowhere."
AMD soars following agreement with OpenAI
Shares in Advanced Micro Devices surged 32% after the company announced a multi-year agreement to supply artificial intelligence chips to OpenAI, a deal expected to generate tens of billions of dollars in annual revenue.
The agreement reportedly includes an option for OpenAI to acquire up to 10% of the chipmaker’s equity.
The partnership will see the deployment of hundreds of thousands of AMD’s graphics processing units, equivalent to six gigawatts, over several years beginning in the second half of 2026.
OpenAI plans to construct a one-gigawatt facility using AMD’s forthcoming MI450 series chips starting next year.
Constellation Brands earnings ahead
In individual stocks, Constellation Brands (NYSE:STZ) is due to post its August quarter returns after the closing bell on Monday.
The alcoholic beverage maker missed both sales and income estimates during the prior quarter. Like many of its peers, Constellation has been grappling with the twin blows of Trump’s rising tariffs on aluminum and broader economic uncertainty that has led some shoppers to rein in purchases of beers and wines.
Meanwhile, shares of Critical Metals Corp. (NASDAQ:CRML) skyrocketed by more than 64% amid media reports around a potential Trump administration investment in the group.
The White House has held talks about taking an equity stake in Critical Metals, the company developing Greenland’s Tanbreez rare earth deposit, Reuters reported on Friday, citing people familiar with the matter.
Such a move would give Washington a direct interest in one of the world’s largest untapped sources of rare earths, a sector dominated by China, the report said.
According to the Reuters report, officials are considering converting a $50 million Defense Production Act grant application by Critical Metals into an equity investment. If finalized, that conversion could translate into about an 8% stake in the company, though discussions remain preliminary and may not result in a deal.
Oil prices climb
Oil prices rose sharply on Monday, rebounding from heavy losses last week, after the Organization of the Petroleum Exporting Countries and its allies agreed to a smaller-than-expected output increase for November that eased some market fears of a global supply glut.
At its meeting on Sunday, the producer alliance, known as OPEC+, said it would raise production by 137,000 barrels per day (bpd) in November, matching the increment approved for October.
That fell well short of the up to 500,000 bpd increase some market participants had anticipated, a prospect that had partially fueled last week’s sell-off.
The decision provided relief to traders who had feared a flood of new barrels would overwhelm fragile demand. OPEC+, which has already added more than 2.7 million bpd of supply this year, has been gradually unwinding the record cuts put in place during the pandemic.