Tech Giants Propel S&P 500 and Nasdaq Amid Monetary Uncertainty

The S&P 500 and Nasdaq rose due to AI-related deals, while a potential Fed rate cut remains unclear amid limited economic data. Kimberly-Clark's acquisition of Kenvue for over $40 billion contrasted with tech gains. Amazon, Nvidia shares surged; Trump on AI chips influenced markets.

The S&P 500 and Nasdaq saw gains on Monday, largely driven by artificial intelligence-related deals, despite an uncertain Federal Reserve monetary policy outlook due to limited economic data.

Boosting the Nasdaq, Amazon struck a $38 billion deal with OpenAI to enhance its AI operations, driving Amazon's stock up by 4.4%. Nvidia shares also saw an increase after former President Donald Trump's announcement that its advanced microchips would be reserved for U.S. companies.

However, Kimberly-Clark's $40 billion deal to acquire Kenvue led to a 14.0% drop in its shares, while materials showed the largest declines among sectors. The Fed's next policy move remains ambiguous, with differing opinions among members on potential rate cuts.

(With inputs from agencies.)