U.S. stocks rise, tech shares led by AMD after large deal with OpenAI

AMD 30% surge lifts Philadelphia Semiconductor Index by 4%

Gold and bitcoin rise while the dollar and U.S. Treasuries fall

AI chip supplier AMD's stock surged more than 30%, reviving optimism about AI investment, and on the 6th (local time) U.S. stocks rose, led by tech shares.

As of 10:15 a.m. Eastern Standard Time, the Nasdaq Composite was up 0.4%, with semiconductor and other tech stocks led by AMD rising. The S&P 500 was up 0.1%. The Dow Jones Industrial Average fell 0.5%.

AMD and OpenAI announced a multi-year graphics processing unit (GPU) supply agreement worth billions of dollars annually for up to 6 gigawatts. The contract included an option for OpenAI to acquire up to a 10% stake in AMD over several years. Interpreted as strong confidence in AMD's long-term growth, buying surged.

AMD's rally pushed up the shares of most semiconductor manufacturers, including Micron Technology, and the Philadelphia Semiconductor Index rose 4%.

By contrast, Nvidia and Broadcom each fell less than 1%. Palantir also rose more than 5%.

Tesla, after teasing a new model launch on social media for the 7th, was trading around 440 dollars, up 2.4%.

With the market's renewed upswing, the S&P 500 recorded its seventh consecutive day of gains, marking its longest stretch of gains since May.

Matt Malley of Miller Tabak said, "The announcement that AMD is entering into a 'tens of billions of dollars' partnership with OpenAI shows the industry's enthusiasm for AI and is an important catalyst for the market."

With a U.S. government shutdown entering its second week, the White House intensified political attacks on congressional Democrats by highlighting the prospect of mass layoffs of federal employees.

Robert Edwards of Edwards Asset Management said, "The U.S. stock market is currently ignoring the impact of the government shutdown and is focused on optimism about corporate earnings and the possibility of further Fed rate cuts."

After Sanae Takaichi's surprise election as the ruling party leader in Japan, selling of long-term Japanese government bonds sent yields sharply higher, and U.S. Treasury yields also rose. The prime minister in President Emmanuel Macron's government announced another resignation, sending French government bonds tumbling and yields surging. Bond prices and yields move in opposite directions.

The 10-year U.S. Treasury yield rose 3 basis points (1bp=0.01%) to 4.15%. The 2-year Treasury yield also rose 2 bp to 3.592%.

Bitcoin, which surged over the weekend, was trading at 124,817 dollars on the day. Ether was up 2.1% at 4,595 dollars.

Gold was trading at 3,931.71 dollars, nearly 4,000 dollars per troy ounce.

Kim Jeong-ah, contributing reporter kja@hankyung.com