Tech Stocks Jump As AMD And OpenAI Ink AI Deal

What’s going on here?

AMD and OpenAI have joined forces to boost AI infrastructure, sparking a jump in US tech stocks while pushing gold prices higher as investors play it safe.

What does this mean?

The announcement of the AMD-OpenAI partnership injected fresh momentum into the tech sector, helping lift the S&P 500 by 0.4% and the Nasdaq Composite by 0.7%, even as the Dow ticked down 0.1%. Chipmakers were the stars, as investors focused on how building out AI infrastructure could drive demand for advanced hardware. Alongside the tech rally, gold prices climbed, reflecting traders’ hopes for US interest rate cuts and ongoing caution about the broader economy. Meanwhile, Australia’s market dipped 0.1%, despite upbeat signals from Web Travel Group’s 19% jump in bookings and news of a NZ$135.6 million settlement by Commonwealth Bank of Australia’s ASB Bank unit—neither of which could outweigh the dominant global trends.

Why should I care?

For markets: AI momentum brightens tech outlook.

The news has supercharged optimism for semiconductor and AI-focused firms, with investors piling into chip stocks on expectations that demand for AI infrastructure is just getting started. That’s helping keep the Nasdaq strong, even as other sectors—especially banking—grapple with legal challenges. Travel tech also proved its resilience, as Web Travel Group’s booking surge stood out against a backdrop of mixed results.

The bigger picture: Safe havens gain as uncertainty persists.

Gold’s rise underscores how investors are hedging bets amid ongoing concerns about global growth and the future of US interest rates. With key consumer and jobs data around the corner and more talk of rate cuts from central banks, markets are balancing excitement for AI-driven growth with a steady dash for traditional safe havens. The shift echoes bigger changes in how investors are managing long-term risk in a world that feels anything but predictable.