AMD Surges on OpenAI Deal as Gold Hits Record

AMD shares jumped nearly 24% late on Monday after announcing a multibillion-dollar AI chip supply agreement with OpenAI, helping lift the S&P 500 and Nasdaq to record closing highs. Gold reached a new all-time peak of $3,977 per ounce early Tuesday, supported by expectations of imminent US rate cuts and safe-haven demand during the US government shutdown. In Europe, France’s political crisis deepened after Prime Minister Sébastien Lecornu resigned just hours after forming a government, pressuring French bonds and the euro while Japan’s yen weakened as Sanae Takaichi prepared to take office.

Equities

London’s FTSE 100 slipped 0.13% to close at 9,479.14 points on Monday, retreating from a brief intraday move above 9,500 which marked its fifth consecutive record high. The pullback came as investors took profits following a strong run last week.

Packaging group Mondi fell sharply, closing 16% lower at an almost 11-year low after reporting that growth in its third-quarter core profit had slowed due to weak demand and falling prices. The company’s update disappointed investors who had hoped for signs of stabilisation in the European paper and packaging sector.

Aston Martin dropped 10.1% after warning of a widening annual loss, citing soft demand in North America and Asia Pacific alongside the impact of US tariffs on its exports. British banks edged 0.5% lower, weighed by broader concerns over political and fiscal stability in Europe following the resignation of France’s new prime minister, Sébastien Lecornu, only hours after forming a government.

Precious metal miners rose nearly 2% as gold reached a record above $3,900 per ounce, while energy shares gained 1.5% in response to stronger crude prices. The healthcare sector, which last week logged its best performance since 2008 amid renewed investor interest following a US–Pfizer drug pricing deal, ended Monday broadly flat.

Across the Atlantic, US equities advanced late on Monday, with the S&P 500 up 0.36% to 6,740.28 and the Nasdaq Composite gaining 0.71% to a record 22,941.67, while the Dow Jones Industrial Average slipped 0.14% to 46,694.97.

The rally in US markets was led by technology stocks after AMD surged 23.7% following news it would supply AI chips to OpenAI in a deal expected to generate tens of billions of dollars annually. The agreement also includes an option for OpenAI to take up to a 10% stake in the chipmaker. The broader Philadelphia Semiconductor Index rose 2.9% in response. Tesla climbed 5.5% after teasing an event scheduled for Tuesday on social media, stoking speculation about potential product announcements.

Starbucks fell 5.0% after TD Cowen cut its price target, warning that a weaker US labour market was affecting spending by younger consumers. Verizon shares dropped 5.1% after naming former PayPal chief executive Dan Schulman as its new CEO, while Comerica jumped 13.7% after Fifth Third said it would acquire the bank in an all-stock deal valued at $10.9 billion. Coinbase, MicroStrategy, Riot Platforms, and MARA Holdings all gained ground as bitcoin rose above $125,000 on Sunday.

Forex & Commodities

The Japanese yen and the euro both fell against the US dollar late on Monday as investors reacted to renewed political uncertainty in Japan and France. The dollar rose to ¥150.20, its strongest level since early August, after Japan’s ruling Liberal Democratic Party chose Sanae Takaichi as its new leader. Her commitment to continuing “Abenomics” policies of fiscal stimulus and ultra-loose monetary settings led traders to scale back expectations of an imminent Bank of Japan rate increase. The euro weakened to $1.1710 after briefly touching $1.1649 earlier in the session, following the sudden resignation of France’s newly appointed prime minister Sébastien Lecornu and his cabinet. Against the yen, the euro reached ¥176.3, its highest since the single currency’s launch in 1999. The euro also slipped against sterling to its lowest level since mid-September. The dollar index was last at 98.11.

Spot gold reached a record high of $3,977 per ounce early on Tuesday, supported by expectations of imminent US rate cuts and continued demand for safe-haven assets amid the ongoing government shutdown in Washington. By mid-morning, it was trading at $3,962.6 per ounce. China’s central bank added to its gold reserves for an eleventh consecutive month in September, while Goldman Sachs lifted its year-end 2026 forecast to $4,900 per ounce, citing strong investment and central bank buying. Silver was steady at $48.49, while platinum eased to $1,624 and palladium rose to $1,329.

Oil prices extended gains early on Tuesday after OPEC+ confirmed a smaller-than-expected output hike of 137,000 barrels per day for November. Brent crude rose to $65.66 a barrel and US West Texas Intermediate climbed to $61.88, both building on gains from the previous session. Markets continued to monitor the impact of recent drone damage at Russia’s Kirishi refinery and the potential for further supply disruptions.