U.S. Stock Indexes Surge as Chipmakers and Bitcoin Break Records
On Monday, October 6, 2025, U.S. stock indexes experienced significant gains, with technology shares leading the way and pushing the Nasdaq and S&P 500 towards record closing highs. This surge in investor sentiment was largely due to the announcement of a major supply agreement between chipmaker AMD and artificial intelligence company OpenAI, as well as Bitcoin breaking the $125,000 mark.
The news of the supply agreement between AMD and OpenAI caused a 26.1% jump in AMD shares, with the potential to generate billions of dollars in annual revenue and allow OpenAI to acquire a 10% stake in the chipmaker. This deal also led to a 3.9% increase in the Philadelphia Semiconductor Index.
Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York, noted that despite the ongoing U.S. government shutdown, which has now entered its sixth day, the economic backdrop has remained fairly solid. He also mentioned that with earnings season approaching and several favorable themes in the market, the path of least resistance is higher.
The government shutdown has delayed the release of key economic reports, leaving investors to rely on private data to assess the possibility of a potential interest rate cut by the Federal Reserve. Currently, financial markets are pricing in a 94.6% probability of a 25 basis-point rate cut at the Fed’s October meeting.
The Dow Jones Industrial Average saw a slight decline of 0.06%, or 28.56 points, to 46,729.72. However, the S&P 500 gained 0.49%, or 32.63 points, to 6,748.42, and the Nasdaq Composite climbed 0.82%, or 186.15 points, to 22,966.16.
Technology and consumer discretionary stocks led the gains among major sectors, while consumer staples recorded the largest decline. According to LSEG data, analysts are projecting a 8.8% earnings growth for S&P 500 companies in the third quarter.
Tesla saw a 4.4% increase after hinting at an upcoming event on social media platform X, while Starbucks fell 4.2% after TD Cowen reduced its price target, citing weaker spending among younger consumers.
The rise in Bitcoin above $125,000 on Sunday also had a significant impact on the market, particularly on crypto-related firms such as Coinbase, MicroStrategy, Riot Platforms, and MARA Holdings.
In the banking sector, Comerica saw a 14.3% gain after Fifth Third announced a $10.9 billion all-stock acquisition of the lender. However, Verizon dropped 4.8% after the appointment of former PayPal chief executive Dan Schulman as its new CEO.
On the New York Stock Exchange, advancing issues outnumbered decliners by a ratio of 1.24 to 1. The Nasdaq recorded 2,731 gainers and 1,885 losers. The S&P 500 posted 43 new 52-week highs and eight new lows, while the Nasdaq Composite registered 172 new highs and 48 new lows.
Overall, the market was boosted by the news of the AMD-OpenAI supply agreement and the continued rise in Bitcoin, causing a surge in chipmakers and crypto-related firms. Despite ongoing concerns over the government shutdown, investor sentiment remains positive with favorable themes and strong earnings projections. This news is distributed by Pressat on behalf of the U.S. stock market.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.