What happened
The Nasdaq Composite jumped 2.3% to a record closing high of 27,122.09, with Intel up 12% and AMD's market cap hitting $1 trillion for the first time.
Why it matters
A 2.3% jump to a record close signals broad investor appetite for chipmakers, and AMD joining the $1 trillion club marks a shift in how the market values semiconductor firms beyond Nvidia.
What to watch
The rally is riding on expectations for the Trump-Xi meeting Thursday, and D.A. Davidson expects low odds of any major breakthroughs. Watch whether the tariff truce expiring in November gets extended.
WHO IT HITSThe move lands on portfolio managers and retail investors holding chip stocks like Intel, AMD, Qualcomm and Nvidia, whose gains drove the broader index higher.
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Monday's rally extended beyond chipmakers. Communication services led sector gains, followed by tech, while energy was the steepest decliner, with West Texas Intermediate crude down 4.7% at $95.56 a barrel and Brent down 3.7% at $100.06.
The session also brought separate corporate moves. Paramount Skydance agreed to settle a multistate antitrust lawsuit tied to its proposed deal with Warner Bros. Discovery, sending Warner Bros. shares up nearly 11% while Paramount fell 2.9%. Novo Nordisk's US-listed shares slumped 8% as the drugmaker laid out long-term growth ambitions ahead of patent expirations for semaglutide.
On rates, Chicago Fed President Austan Goolsbee said policymakers can no longer look through supply shocks without evidence they are fading, calling a credible path back to 2% inflation harder to justify otherwise. Whether the chip-led rally holds is likely to hinge on the outcome of the Trump-Xi talks Thursday and on whether the tariff truce set to expire in November is extended.
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AMD hit a major milestone, and AI stocks blazed higher
