US stock indices edged higher on Monday, primarily buoyed by strong optimism surrounding the continued demand for Artificial Intelligence (AI) infrastructure and a major deal in the consumer healthcare sector.
The market sentiment was significantly lifted by the news of a colossal $38 billion computing deal struck between OpenAI and Amazon Web Services (AWS).
Separately, the consumer health sector provided additional tailwinds after Kimberly-Clark announced it would acquire Kenvue (the Tylenol maker) in a cash-and-stock transaction valued at approximately $48.7 billion.
At the open, the Dow Jones Industrial Average rose 134.5 points, or 0.28%, to 47,697.33. The S&P 500 rose 42.1 points, or 0.62%, to 6,882.32, while the Nasdaq Composite rose 227.0 points, or 0.96%, to 23,951.911.
On the economic front, investors awaited US private payroll data for further cues on the Federal Reserve’s monetary policy outlook.
Bullion Market
Gold prices were steady on Monday as the US dollar hovered close to a three-month peak.
Spot gold was up by 0.1%, trading at $4,008.34 an ounce as of 12:34 GMT. Meanwhile, US gold futures for December delivery showed a more robust gain, rising 0.7% to reach $4,022.40 per ounce.
Across the wider metals market, price action was mixed but generally positive. Spot silver climbed 0.2% to $48.75 an ounce. Platinum saw a strong rise, advancing 1.4% to $1,590.61. Palladium gained 0.6%, reaching $1,442.81.
Crude Oil
Crude oil prices saw minimal movement on Monday, with the market’s initial reaction muted despite news that OPEC and its allies plan to wind down their supply increases. Sentiment was heavily weighed down by lingering fears of a wider oil supply glut and weaker-than-expected factory data emerging from Asia.
Brent crude futures dipped by just 1 cent, or 0.02%, to trade at $64.76 a barrel by 13:29 GMT. The US West Texas Intermediate (WTI) crude benchmark was also marginally lower, easing 2 cents, or 0.03%, to stand at $60.96 per barrel.
The Organisation of the Petroleum Exporting Countries (OPEC), along with its allies (OPEC+), had agreed on Sunday to implement only a small increase of 137,000 barrels per day (bpd) in output for December, and, significantly, to pause any further increases throughout the first quarter of next year.
