S&P 500 rises to kick off new week after big bank deal, AMD-OpenAI partnership
The S&P 500 rose on Monday after a sizable regional bank merger spurred enthusiasm a bigger M&A wave is on the way and as AMD shares surged on a partnership with OpenAI. The broad market index continued to grind higher even as a government shutdown dragged on into a second week.
The S&P 500 climbed 0.2%, while the Nasdaq Composite advanced 0.3%. The Dow Jones Industrial Average fell 45 points, or 0.1%.
AMD jumped more than 30% in after reaching a deal with Sam Altman’s AI leader that could ultimately end up giving the ChatGPT company a 10% stake in the chipmaker via a warrant with different tranches. AMD will use certain graphics processing units rolled out over multiple years. Nvidia, AMD’s main competitor in graphics processors, came under pressure in the premarket following that announcement.
Comerica shares rallied 16% after Fifth Third Bancorp reached a deal to buy the fellow regional bank for $10.9 billion in an all-stock transaction. The merger will form the ninth-largest U.S. bank by assets. The SPDR S&P Regional Banking ETF jumped 2% on expectations more deals were ahead in the space. Overall M&A has been picking up, adding to the animal spirits seen in the stock market this year.
Investors shrugged off worries about the shutdown after lawmakers once again failed to reach a deal on funding to keep the government open. The shutdown delayed the release of key economic data — including the September jobs report -- which was originally due Friday.
Source : Cnbc.com
