US Stocks Close at Record High for Third Straight Session

All three major US indices closed at record highs on Monday for the third consecutive trading session. The Dow Jones, S&P 500 and Nasdaq rose 0.14%, 0.44% and 0.70% respectively on Monday, with technology stocks leading the way. 

Nvidia to Invest $100 billion in Open AI

On Monday, Nvidia announced that it will invest up to $100 billion in OpenAI, in a partnership which will fuel significant data centre expansion for artificial intelligence.

Under the plans, OpenAI intends to deploy 10 gigawatts of additional capacity using Nvidia’s advanced processors. In turn, Nvidia will progressively buy equity in OpenAI as each gigawatt is deployed. 

The first investment of $10 billion will reportedly be made once the first gigawatt is deployed, which is expected to take place in the second half of 2026. Nvidia shares gained 3.9% on the news in Monday’s trading session.

Apple Shares Pop on Positive News

Amongst the best performers on the S&P 500 on Monday was Apple. The tech giant’s shares jumped 4.3% during the session thanks to positive news about demand for its latest iPhone. 

On Friday, Apple released its latest iPhones alongside new Apple Watch and AirPod models, and, according to analysts, product wait times suggest that demand is robust. 

Bank of America analysts wrote the following note on Monday: 

Our tracking of iPhone ship dates on Apple’s own website, and various carrier websites, indicates that as of Sep 22nd, ship time (in days) for the iPhone 17 (18 days) are more extended vs last year’s iPhone 16 (10 days).

In other words, demand for the iPhone 17 appears to be considerably stronger than it was at this stage last year for the iPhone 16. It's also reportedly experiencing strong demand in China, a key market for the iPhone maker. 

Gold Scales Record High, Again

Gold recorded another record high on Monday, as futures rose 1.6% during the session. Year to date, the precious metal is now up more than 43%. 

The latest gains came after mixed signals about future policy from rate setters at the Federal Reserve and ahead of a speech from Fed Chair Jerome Powell due on Tuesday. 

Newly appointed Federal Reserve Governor Stephen Miran expressed a preference for aggressive rate cuts on Monday, a view which was countered by three of his colleagues who feel that the central bank needs to remain cautious about inflation. 

According to CME’s FedWatch tool, markets are currently pricing in a 90% chance that the Fed will cut rates by 25 basis points when it meets in October and a 75% chance of another 25 basis point reduction in December.

Investors will be watching Powell’s speech later on Tuesday for clues about future policy decisions. Then, on Friday, August's Personal Consumption Expenditure (PCE) Index - which is the Fed’s preferred measure of inflation - is due to be announced. 

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