US Stocks Hit New Highs After AMD, OpenAI Major Deal

Published Date : 6/10/2025 

US stocks set new records as the deal between AMD and OpenAI drives excitement in the artificial intelligence sector. The S&P 500 and Nasdaq composite both hit all-time highs, while tech and banking stocks saw significant movements. 

NEW YORK -- Wall Street continues to set records, with the artificial intelligence (AI) industry leading the charge. The S&P 500 climbed 0.4% to an all-time high, following mixed trading on Monday. The Dow Jones Industrial Average dipped 63 points, or 0.1%, while the Nasdaq composite rose 0.7% to its own record.

Advanced Micro Devices (AMD) played a crucial role in this surge, soaring 23.7% after announcing a deal with OpenAI. Under the agreement, OpenAI will use AMD's chips to power its AI infrastructure. As part of the deal, OpenAI could own up to 160 million shares of AMD if it meets certain milestones.

The frenzy around AI has been a primary driver of Wall Street's recent record-breaking performance, though this has also raised concerns that stock prices may have risen too high. OpenAI, which has rapidly grown into a $500 billion company, has been announcing deals with various businesses to develop more AI infrastructure.

Another major player in the tech industry, Nvidia, announced a $100 billion investment in OpenAI last month as part of a partnership. This move drew criticism that the AI investment pipeline was beginning to resemble a closed loop. Following the AMD announcement, Nvidia's stock slipped 1.1%. Given its position as the most valuable stock on Wall Street, Nvidia's decline had a significant impact on the S&P 500.

Outside of tech, Comerica saw a 13.7% jump after Fifth Third Bancorp agreed to buy it in an all-stock deal valued at $10.9 billion. The merger would create the country's ninth-largest bank. Fifth Third's stock, however, fell 1.4%.

Tesla's stock rose 5.4% after the company hinted at a possible product unveiling via social media, expected to occur on Tuesday.

Verizon Communications fell 5.1% after the telecom company replaced its chief executive. Dan Schulman, a director at Verizon and former CEO of PayPal, is taking over for Hans Vestburg.

Elsewhere on Wall Street, trading was relatively quiet, with the stock market largely shrugging off the U.S. government's shutdown. Past government closures have had minimal effects on the stock market and the economy, and Wall Street is betting on a similar outcome this time around.

The S&P 500 rose 24.49 points to 6,740.28. The Dow Jones Industrial Average fell 63.31 points to 46,694.97, and the Nasdaq composite rose 161.16 points to 22,941.67.

International markets also saw significant movements, with Japanese stocks surging and French stocks declining. Japan's Nikkei 225 jumped 4.8% after the Liberal Democratic Party chose Sanae Takaichi as its leader. Takaichi, an ally of the late Prime Minister Shinzo Abe, is expected to continue policies that investors favor, such as lower interest rates.

The yen's value dropped against the U.S. dollar, boosting the stocks of Japanese exporters. Neil Newman, head of strategy at Astris Advisory Japan, noted that the market's reaction was led by foreign investors.

In Paris, the CAC 40 index slumped 1.4% following the resignation of France's new prime minister, Sébastien Lecornu. Lecornu resigned a day after naming his government, drawing criticism from various political factions. French politics have been in disarray since President Emmanuel Macron called snap elections last year, resulting in a deeply fragmented legislature.

In the bond market, the yield on the 10-year Treasury rose to 4.16% from 4.13% late Friday.

The U.S. government shutdown is likely to cause delays in scheduled economic reports this week, but investors will still have earnings reports to analyze, including those from Delta Air Lines, PepsiCo, and Levi Strauss. Despite the shutdown, the Federal Reserve will release minutes from its last meeting, where it cut its benchmark interest rate for the first time this year. Wall Street is closely watching for signs that the Fed will continue to cut interest rates throughout the year and into the next. 

Frequently Asked Questions (FAQS): 

Q: What is the significance of the deal between AMD and OpenAI?

A: The deal between AMD and OpenAI is significant because it involves OpenAI using AMD's chips to power its AI infrastructure. This move could potentially enhance OpenAI's capabilities and solidify AMD's position in the AI market. As part of the deal, OpenAI could own up to 160 million shares of AMD if it meets certain milestones.

Q: Why did Nvidia's stock decline following the AMD announcement?

A: Nvidia's stock declined following the AMD announcement because it faces increased competition from AMD in the AI chip market. Nvidia had previously announced a $100 billion investment in OpenAI, and the AMD deal could be seen as a challenge to Nvidia's dominance in the sector.

Q: What impact did the U.S. government shutdown have on the stock market?

A: The U.S. government shutdown had a minimal impact on the stock market. Historically, government closures have had little effect on the stock market or the economy. Wall Street is betting on a similar outcome this time around, with trading remaining relatively quiet.

Q: How did the appointment of Sanae Takaichi as leader of Japan's Liberal Democratic Party affect the market?

A: The appointment of Sanae Takaichi as the leader of Japan's Liberal Democratic Party led to a surge in Japanese stocks. Takaichi, an ally of the late Prime Minister Shinzo Abe, is expected to continue policies that investors favor, such as lower interest rates. The yen's value dropped against the U.S. dollar, boosting the stocks of Japanese exporters.

Q: What are the expectations for the Federal Reserve's interest rate policy?

A: Wall Street is closely watching for signs that the Federal Reserve will continue to cut interest rates throughout the year and into the next. The Fed recently cut its benchmark interest rate for the first time this year, and the release of minutes from its last meeting will provide insights into future rate cuts. 

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