U.S. Stocks Mixed; AMD, OpenAI Form Billion-Dollar Partnership
U.S. stocks experienced a mixed performance on Monday, with the S&P 500 and Nasdaq Composite closing higher while the Dow Jones Industrial Average dipped slightly. Meanwhile, Federal Reserve Board Governor Stephen I. Miran is set to speak at the Managed Funds Association Policy Outlook 2025 on Tuesday, following his dissent on a quarter-point rate cut at the previous meeting.
Stock futures for major indices were relatively unchanged ahead of Monday's market open. The S&P 500 and Nasdaq Composite managed to close with gains of 0.4% and 0.7%, respectively. However, the Dow Jones Industrial Average slipped by 0.1%.
In corporate news, AMD and OpenAI have formed a multibillion-dollar partnership. AMD will supply chips to OpenAI over several years, with OpenAI gaining the option to buy about 10% of AMD. This deal could generate tens of billions of dollars in annual revenue for AMD, both directly and indirectly if other buyers opt for AMD as an alternative to Nvidia.
Stephen I. Miran, a Federal Reserve Board Governor who opposed a quarter-point rate cut at the previous meeting, will share his insights at the Managed Funds Association Policy Outlook 2025 on Tuesday. His dissenting vote in September sparked debate, with critics arguing he overstated the impact of immigration on inflation. The partnership between AMD and OpenAI, meanwhile, is expected to have a significant impact on the tech industry, with AMD poised to benefit from increased demand for its chips.
