On Monday, S&P Futures experienced an uptick following a significant regional bank merger, which ignited optimism regarding a forthcoming wave of mergers and acquisitions. Additionally, shares of AMD saw a notable increase due to a partnership with OpenAI. The market persisted in its upward trajectory despite the ongoing government shutdown extending into a second week. Futures for the Dow Jones Industrial Average increased by 93 points, representing a 0.2% rise. S&P 500 futures increased by 0.3%, whereas Nasdaq-100 futures saw an advancement of 0.6%.

The S&P 500 and Nasdaq Composite have recorded their fourth weekly increase in five weeks, with gains of 1.1% and 1.3%, respectively. The Dow experienced an increase for the third time in four weeks, rising by 1.1%. AMD shares surged over 20% in early trading following an agreement with Sam Altman’s AI leader, which may result in the ChatGPT company acquiring a 10% stake in the chipmaker through a warrant structured in various tranches. AMD is set to deploy specific graphics processing units that have been introduced over several years. Nvidia, AMD’s primary rival in the graphics processor market, experienced a decline of nearly 2% in premarket trading subsequent to the announcement. Comerica shares experienced an 11% increase following Fifth Third Bancorp’s agreement to acquire the regional bank for $10.9 billion in an all-stock transaction. The merger will result in the creation of the ninth-largest bank in the United States by assets. The SPDR S&P Regional Banking ETF experienced a 1% increase in early trading, driven by anticipations of forthcoming transactions within the sector.

Overall, mergers and acquisitions have been on the rise, contributing to the heightened animal spirits observed in the stock market this year. Investors appeared unfazed by concerns surrounding the shutdown, as lawmakers once again could not finalize an agreement on funding to maintain government operations. The shutdown has postponed the publication of critical economic indicators, notably the September jobs report, which was initially scheduled for release on Friday. “Nevertheless, we consider this a ‘sidebar’ issue, and the probabilities strongly favor stocks maintaining their strength from October to December this year. In fact, we see S&P 500 reaching at least 7,000 by year-end — and maybe higher,” wrote Tom Lee.

“We would encourage examining the complexities of the shutdown, and even the absence of data. “If stocks are particularly weak, I would use this to ‘buy the dip,’” he stated. In light of the ongoing data blackout, it is noteworthy that a number of Federal Reserve officials are scheduled to address the public this week, with Fed Governor Stephen Miran set to speak on Wednesday and Chair Jerome Powell on Thursday.