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SHUTDOWN SECOND-WEEK: S&P 500, NASDAQ RISE; AMD JUMPS ON OPENAI DEAL

As markets marched into the second week of shutdown, the S&P 500 .SPX and Nasdaq index .IXIC continued their positive momentum on Monday, extending last week's gains, as Advanced Micro Devices AMD.O jumped 29% after the chipmaker agreed on a multi-year deal with OpenAI.

AMD's deal covers the deployment of hundreds of thousands of AMD's AI chips, or graphics processing units (GPUs), equivalent to six gigawatts, over several years beginning in the second half of 2026.

"This is yet another validation sign that the AI Arms Race is heating up among Big Tech firms with AMD now joining the AI party," Wedbush analysts said in a note.

Other chipmakers - Marvell Technology MRVL.O gained over 2%, while Nvidia NVDA.O fell more than 1%.

The broader semiconductor .SOX index hit a record high and was last up 3.4%.

On the other hand, Dow .DJI declined 0.2%.

With the shutdown entering its second week, investors have been relying on private and alternative economic data indicators for cues on the interest rate path, even though a 25 bps cut at this month's policy meeting looks almost priced in.

Traders are betting on a 94.6% chance for the Fed to cut rates by 25 bps this month, as per CME's FedWatch tool.

Among S&P sectors, utilities .SPLRCT led gains, while communication services declined the most .SPLRCL.

Tesla TSLA.O shares rose 3% after the electric vehicle maker teased an October 7 event, in which investors and analysts anticipate a more affordable model to sustain sales momentum.

On the M&A front, Fifth Third FITB.O on Monday agreed to buy regional lender Comerica CMA.N in an all-stock deal valued at $10.9 billion, creating the ninth-largest U.S. lender. Comerica shares jumped nearly 15%.

Here is a market snapshot at 10:39 a.m. ET:

(Siddarth S)

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EARLIER ON LIVE MARKETS:

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CITI SEES EQUITY RALLY BROADENING CLICK HERE

FRENCH SHARES TUMBLE AS GOVERNMENT COLLAPSES CLICK HERE

EUROPE BEFORE THE BELL: FUTURES STEADY, JAPAN SURGES CLICK HERE

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