U.S. markets are hovering near all-time highs, driven by a surge in tech stocks. The S&P 500 rose 0.3%, the Dow Jones Industrial Average added 92 points, and the Nasdaq composite climbed 0.5%, moving toward its own record. Technology shares led the gains following OpenAI’s announcement of partnerships with South Korean companies to supply its Stargate AI infrastructure project.
OpenAI Partnerships Fuel Chip Demand
OpenAI’s collaboration with Samsung Electronics (KRX:005930) and SK Hynix (KRX:000660) to supply memory chips for its Stargate data hubs has energized investors in the semiconductor sector. Broadcom (NASDAQ:AVGO) rose 1.9% and Advanced Micro Devices (NASDAQ:AMD) climbed 3.4%, reflecting optimism that AI-related demand will offset potential tariff impacts on other industries, according to Nomura Group analysts.
In Asia, Samsung’s shares jumped 3.5%, SK Hynix gained 9.9%, and Taiwan Semiconductor Manufacturing (NYSE:TSM) rose 3%, helping lift the Taiex index by 1.5%. South Korea’s Kospi finished 2.7% higher at 3,549.21.
Wall Street Reacts Amid U.S. Government Shutdown
Despite the U.S. government shutdown, which delayed weekly unemployment claims and is expected to postpone Friday’s Labor Department jobs report, U.S. markets continued to climb. Investors hope the job market slows just enough to encourage Federal Reserve interest rate cuts without triggering a recession. Stephen Innes of SPI Asset Management noted that “markets once again proved that they love nothing more than turning a crisis into a stage set for higher prices.”
Credit Score Shakeup Boosts FICO
Fair Isaac Corporation (NYSE:FICO) surged 19% after announcing a program enabling mortgage lenders to access and distribute FICO scores directly to consumers, bypassing Equifax (NYSE:EFX), TransUnion (NYSE:TRU), and Experian. As a result, TransUnion shares fell 10.7% and Equifax slid 11.4%, signaling a potential shakeup in the credit reporting industry.
Buffett’s Big Move: Occidental Petroleum Deal
Berkshire Hathaway (NYSE:BRK.B) announced the acquisition of Occidental Petroleum’s (NYSE:OXY) chemical division for $9.7 billion. The transaction, one of Warren Buffett’s largest deals in recent years, saw Berkshire’s Class B shares hold steady while Occidental shares rose 1.6%. The deal may mark Buffett’s final major acquisition before handing over CEO responsibilities to Vice Chairman Greg Abel in January, though he will remain chairman. Berkshire currently holds about $344 billion in cash.
Global Markets Show Gains
Tech-led gains extended overseas. Japan’s Nikkei 225 rose 0.9% to 44,936.73, while Hong Kong’s Hang Seng climbed 1.6% to 27,287.12. Europe also saw broad gains: Germany’s DAX and France’s CAC 40 each rose 1.3%, and the FTSE 100 in Britain edged up slightly. Australia’s S&P/ASX 200 increased 1.1%, led by gold miners, while India’s BSE Sensex gained 0.9% after the Reserve Bank of India held its key interest rate steady.
Commodities and Safe-Haven Assets
U.S. benchmark crude oil fell to $61.37 per barrel, with Brent crude declining to $64.91. The U.S. dollar dropped to 146.77 Japanese yen, while the euro strengthened to $1.1761. Gold, often sought as a safe haven during uncertain times, climbed to $3,909.90 per ounce, up over 37% in the past year, reflecting investor caution amid economic and political uncertainties.
Outlook for U.S. Tech Stocks
With AI-related partnerships driving semiconductor demand and positive earnings supporting tech valuations, U.S. tech stocks are expected to continue leading gains. Investors are watching closely for updates on the U.S. labor market and Fed policy, which could influence the sustainability of these record-setting moves.
Analysts also caution that geopolitical risks, such as trade tensions and global supply chain disruptions, could create volatility in the tech sector. Still, optimism around artificial intelligence applications and corporate adoption of cloud computing and data center technologies is likely to support growth in leading tech names for the remainder of the year. As innovation accelerates and AI adoption expands globally, investors may see tech stocks maintain momentum despite short-term economic uncertainties.
Ultimately, for those tracking U.S. tech stocks, staying informed on AI developments, chip demand, and macroeconomic signals will be critical to navigating the market’s record-breaking highs and potential fluctuations ahead.
Featured Image – Freepik
