U.S. stock futures rose Monday, boosted by a major regional bank merger and AMD’s partnership with OpenAI. The Dow, S&P 500, and Nasdaq extended their recent winning streaks, while Comerica and AMD shares surged. Investors largely ignored the ongoing government shutdown as optimism over M&A activity and tech growth lifted sentiment. Analysts expect stocks to remain strong through year-end, with key Fed speeches ahead this week.
Stock Futures Rise as Bank Merger, AMD–OpenAI Deal Fuel Optimism Despite Ongoing Shutdown
U.S. stock futures climbed Monday as investors cheered a major regional bank merger and AMD’s new partnership with OpenAI, brushing aside concerns over a prolonged government shutdown.
Dow Jones Industrial Average futures gained 93 points, or 0.2%, while S&P 500 futures added 0.3% and Nasdaq-100 futures advanced 0.6%.
The upward momentum follows a strong stretch for equities — the S&P 500 and Nasdaq Composite each notched their fourth weekly gain in five weeks, up 1.1% and 1.3% respectively. The Dow also rose 1.1%, marking its third positive week in four.
AMD shares surged more than 20% in early trading after striking a deal with Sam Altman’s OpenAI that could give the AI leader a 10% stake in the chipmaker through a multi-tranche warrant. The agreement will see AMD supply advanced GPUs over several years to support OpenAI’s computing expansion.
In the banking sector, Comerica shares rallied 11% after Fifth Third Bancorp announced plans to acquire the regional lender in a $10.9 billion all-stock deal, creating the ninth-largest U.S. bank by assets. The news lifted the SPDR S&P Regional Banking ETF by 1% on expectations that more consolidation could follow amid a rebound in M&A activity this year.
Meanwhile, investors appeared to discount the impact of the ongoing government shutdown, now entering its second week, after lawmakers again failed to reach a funding agreement. The impasse has delayed key economic data releases, including the September jobs report.
Fundstrat’s head of research Tom Lee said the shutdown should be seen as a “sidebar issue,” projecting the S&P 500 could climb to at least 7,000 by year-end. “If stocks are particularly weak, I would use this to ‘buy the dip,’” Lee advised.
Despite the data blackout, investors will hear from several Federal Reserve officials this week, including Governor Stephen Miran on Wednesday and Chair Jerome Powell on Thursday.