It was one of those market Mondays where Wall Street felt electric. The S&P 500 once again climbed to fresh highs, and the real star of the show? Nvidia. The chip-making powerhouse set the tone after announcing a jaw-dropping partnership with OpenAI—sending a wave of optimism across the investing world about where artificial intelligence could take us next.
Nvidia and OpenAI: The Deal That Lit Up Wall Street
Nvidia’s latest move isn’t small potatoes. The company said it’s pouring $100 billion into OpenAI to help build out next-generation data centers. That’s the kind of figure that makes even seasoned investors do a double take.
According to CFRA Research’s chief investment strategist, Sam Stovall, the deal signals something bigger: the AI trade could keep fueling earnings and share price growth well into 2026 and beyond. If you thought Nvidia’s rise was impressive before, this new investment makes it clear—they’re not just playing in the AI race, they’re setting the pace.
The Numbers That Matter
Here’s how the major indexes stacked up by the end of Monday’s session:
- S&P 500: up 0.5%
- Nasdaq Composite: up 0.7%
- Dow Jones Industrial Average: up 102 points, or 0.2%
And here’s the kicker: all three of them hit fresh intraday all-time highs during the day. That’s right—record-setting across the board.
Oracle Shakes Up Leadership and Wins Big
But Nvidia wasn’t the only one catching headlines. Oracle made waves of its own, announcing a big leadership change. Software veterans Clay Magouyrk and Mike Sicilia are stepping up as co-CEOs, while longtime chief Safra Catz is moving into a new role as executive vice chair on the board.
Investors clearly liked the move. Oracle’s stock kept soaring, adding to what’s already been a staggering 42% rally this month. That’s no small feat—and it puts Oracle right in the spotlight alongside Nvidia when it comes to AI-driven momentum.
Apple Joins the Party
Tech giant Apple also got in on the action. Shares climbed higher on growing enthusiasm over strong iPhone sales. While not as headline-grabbing as Nvidia’s mega-deal or Oracle’s leadership shuffle, the steady optimism around Apple continues to play a key role in keeping the tech sector buoyant.
Clouds on the Horizon: Government Shutdown Risks
Of course, it wouldn’t be Wall Street without a little drama lurking in the background. Investors are keeping a wary eye on Washington, where lawmakers are scrambling to avoid a government shutdown.
Here’s where things stand: last week, the Senate turned down both Republican and Democratic funding proposals. Now, Senate Democratic Leader Chuck Schumer is pressing President Donald Trump to sit down with Democrats and hammer out a deal. The deadline? September 30. Until then, the risk of a shutdown is capping some of the market’s momentum.
Fed Moves Keep the Market Buzzing
Even with political tension simmering, markets are still riding the momentum from the Federal Reserve’s recent rate cut—the first since December. That move helped all three major indexes push to record highs last week.
Traders aren’t done betting on rate moves either. The CME Group’s FedWatch tool shows expectations for two more quarter-point cuts before year-end. And that has investors feeling a little more confident about where things are headed.
“Unless something goes to hell in a handbasket in the next three months,” Stovall noted, “the markets are telling you they want to move higher—and likely will by year-end.”
What’s Next: Inflation Data on Deck
This week brings a critical test: the latest reading on the Fed’s preferred inflation gauge, the personal consumption expenditures (PCE) price index. Historically, this week is one of the weakest for the S&P 500, according to Citadel data. But if inflation comes in tame, it could reinforce the Fed’s current stance—and keep the rally rolling.
Final Take
Monday’s market was a showcase of what happens when tech innovation collides with investor enthusiasm. Nvidia’s billion-dollar bet on OpenAI reminded Wall Street just how powerful the AI story has become. Oracle proved it can keep its stock sizzling with bold leadership changes, while Apple rode steady consumer demand higher.
Yes, the looming government funding drama adds a layer of uncertainty. But for now, the bigger story is clear: the AI-fueled rally has momentum, and markets are showing no sign of slowing down.
