U.S. equities erased early session losses on Monday to close at fresh record highs, powered by a strong performance in technology stocks. Market sentiment received a boost from NVIDIA's commitment to invest up to $100 billion in OpenAI, fueling optimism around artificial intelligence developments.
Technology shares spearheaded the S&P 500's advance, with the benchmark index notching its 28th record high of 2025.
NVIDIA surged approximately 4% following the announcement. The world's largest chipmaker's investment aims to support OpenAI's data center infrastructure development, utilizing NVIDIA's cutting-edge AI processors for model training and deployment.
Apple shares jumped 4.3%, reaching their highest level since December and pushing the stock into positive territory for the year.
Pfizer edged slightly higher after announcing its agreement to acquire Metsera, as the pharmaceutical giant seeks to catch up with competitors in the weight-loss medication market following earlier setbacks.
Consumer health company Kenvue plummeted to a record low amid reports that Trump administration officials plan to link the active ingredient in Tylenol to autism concerns.
As mega-cap technology companies once again propelled U.S. stocks to historical peaks, Goldman Sachs hedge fund business head Tony Pasquariello advised investors to remain "constructively bullish."
"I don't love the current positioning and tactical risk/reward setup," he noted. "That said, I don't think investors should step in front of the U.S. mega-cap tech train either."
Federal Reserve officials delivered mixed messages regarding monetary policy direction. In his first policy speech since being appointed as a Fed governor, Stephen Miran emphasized the necessity of significant rate cuts in coming months to protect the labor market. Meanwhile, St. Louis Fed President Alberto Musalem suggested limited room for rate reductions given elevated inflation levels. Cleveland Fed President Beth Hammack advocated for cautious policy implementation to prevent economic overheating.
Goldman Sachs Chief U.S. Equity Strategist David Kostin raised his three-month S&P 500 target to 6,800 on Friday, while also lifting six-month and twelve-month targets to 7,000 and 7,200 respectively. The index closed Monday near the 6,700 level.
"Over the past 40 years, when the Fed has resumed rate cuts against a backdrop of continued economic growth, the S&P 500's median 12-month return has been 15%," he observed.
At market close: - The S&P 500 advanced 0.4% to 6,693.75 points - The Dow Jones Industrial Average gained 0.1% to 46,381.54 points - The Nasdaq Composite rose 0.7% to 22,788.98 points - The Nasdaq 100 climbed 0.6% to 24,761.07 points - The Russell 2000 increased 0.6% to 2,463.336 points