Nasdaq 100: Amazon spikes, Palantir jumps after-hours — tech stocks lift US indices today
News Summary
The Nasdaq Composite closed higher on Monday, driven by strong gains in artificial intelligence-related stocks, while the S&P 500 edged up and the Dow declined. A $38 billion AI deal between Amazon and OpenAI fueled optimism in the tech sector, with Amazon jumping after announcing a partnership for OpenAI to scale its workloads on Amazon Web Services. Palantir shares rose about 3% in extended trading after the company topped Q3 earnings expectations and raised its Q4 and full-year outlook, underscoring the growing role of AI in enterprise and government spending. Nvidia also advanced after President Trump stated its top-tier AI chips would remain within U.S. borders. However, market breadth remained narrow, with gains concentrated in mega-cap tech and select consumer names, while industrials, financials, and materials closed in the red. Federal Reserve policy remains uncertain due to a government shutdown delaying economic data, with Fed officials offering mixed guidance despite a recent rate cut. Kimberly-Clark's acquisition of Kenvue also raised concerns about leverage and integration costs.
Background
In 2025, the U.S. economy continues to operate under President Trump's administration, with macroeconomic policies and geopolitical factors significantly influencing the markets. The Federal Reserve's monetary policy trajectory remains a key focus, particularly amidst mixed inflation pressures and economic growth data. Technology, especially artificial intelligence, continues to be a primary driver of market growth, with major tech companies increasing investments in AI infrastructure and applications. Concurrently, political events like government shutdowns can delay economic data releases, thereby increasing uncertainty around Fed decisions and impacting market sentiment.
In-Depth AI Insights
What does Amazon's massive deal with OpenAI signify for the competitive landscape of the cloud industry? - Amazon's $38 billion AI deal solidifies AWS's position as a leading AI infrastructure provider, representing not just revenue growth but a strategic endorsement of AWS's tech stack and security capabilities. - This transaction could intensify a