US stocks rally amid hopes of the government shutdown ending soon
The AI trade was also back on in full force, and the S&P 500, Nasdaq 100, and Russell 2000 all enjoyed a strong start to the week.
The markets rallied on Monday following a Sunday evening announcement by the US Senate that a tentative compromise bill would advance, potentially ending the US government shutdown this week.
The AI trade got an additional boost as Nvidia CEO Jensen Huang “asked for wafers” from TSMC in light of “very strong demand,” boosting both stocks.
The S&P 500 closed up roughly 1.5%, the tech-heavy Nasdaq 100 soared more than 2% for its best day since May, and the Russell 2000 rose over 1%.
Stocks that moved higher:
Chips stocks like Micron and AMD benefited from the Nvidia halo, as traders heard Huang note that there would be shortages of “different things” that those chipmakers could supply.
Other stocks rallying from renewed optimism in the AI space included Palantir, Western Digital, and Seagate Technology Holdings.
Tesla shareholders weren’t bothered by its Cybertruck program chief stepping down or its lackluster China sales, but seemed to like the move to get more Tesla buyers by first enticing them as Tesla renters.
Opendoor Technologies skyrocketed after management employed a tactic that’s pushing short sellers to think twice about betting against the company.
Shares of Rivian revved up in the Monday session, as traders reacted well to a Friday evening announcement that the EV maker will award its CEO a pay package of up to $4.6 billion.
Coinbase rose after The Wall Street Journal confirmed rumors it is launching a new site for “token offerings” reminiscent of the “initial coin offering” craze from a few years back.
Stocks that moved lower:
After President Trump targeted health insurers in his social media posts, the biggest providers of ACA Marketplace plans like UnitedHealth, Elevance Health, Oscar Health, and Molina Healthcare fell.
Shares of carriers such as American Airlines, United Airlines, and Delta Air Lines rose for a while as investors reacted optimistically to the possible end to the government shutdown, before giving up those gains to end in the red.
