Amazon’s deal fuels AI wagers, leading to a Mag Seven jump – US Market Wrap

The start of what is recognised as the strongest month of the year for stocks saw tech soar, as Amazon’s $38 billion deal with OpenAI fueled the artificial-intelligence trade. Bond yields increased. Crypto sank.

A continued surge in Megacaps brought the Magnificent Seven index up 1.2%. In a seven-year agreement, OpenAI will pay Amazon Web Services for access to hundreds of thousands of Nvidia graphics processing units. The online retailer’s stock surged 4%. Despite the AI euphoria, more than 300 S&P 500 companies have retreated.

Traders also focused on the few economic reports scheduled for this week. In October, US factory activity fell for the eighth consecutive month, but inflationary pressures eased.

Fed’s Goolsbee warned that he is more concerned about inflation than jobs, while his San Francisco colleague, Fed’s Daly, said officials should “keep an open mind” regarding a December rate decrease. Fed’s Miran acknowledged that policy remains tight.

The S&P 500 was hovering around 6,850. Its equal-weighted version, which gives Dollar Tree the same heft as Apple and Palantir, whose stocks have risen over 400% in the last year, was scheduled to report profits after the closing.
The yield on 10-year Treasuries increased three basis points to 4.10%. Bitcoin fell roughly 3%. The dollar fluctuated.