U.S. stock markets reached new record highs on Monday, propelled by a landmark investment in artificial intelligence and strong sales data from Apple. NVIDIA announced a plan to invest up to $100 billion in OpenAI, while Apple's latest iPhone is exceeding sales expectations, signaling continued strength in the technology sector.
The Dow Jones Industrial Average, S&P 500, Nasdaq Composite, and Russell 2000 all closed at their highest levels to date. The gains highlight investor confidence in major technology firms, even as bond yields continue to rise gradually.
Key Takeaways
- Major U.S. stock indices, including the S&P 500 and Nasdaq, closed at new record highs on September 22, 2025.
- NVIDIA announced a potential $100 billion investment in OpenAI to develop a massive 10-Gigawatt data center project.
- NVIDIA's market capitalization increased by $145 billion in a single day, reaching a total of $4.5 trillion.
- Apple shares rose 4.3% after reports showed iPhone 17 sales are tracking 10-15% higher than the previous model.
- Investors are now looking ahead to upcoming economic data, including the S&P Services and Manufacturing PMI reports.
Stock Market Sets New Records
The trading week began with broad gains across U.S. equity markets. The S&P 500 added 29 points, an increase of 0.44%, while the tech-heavy Nasdaq Composite climbed 155 points, or 0.69%.
The Dow Jones Industrial Average saw a more modest gain of 66 points, up 0.14%. The small-cap Russell 2000 also performed well, rising 14 points for a 0.59% increase. The performance of all four indices resulted in new record closing highs, continuing a period of strong market performance.
In the bond market, yields saw a slight uptick. The 10-year Treasury yield increased by two basis points to 4.15%, and the 2-year yield rose by three basis points to 3.61%. This occurred despite market expectations of potential future interest rate cuts.
Understanding Market Indices
The S&P 500 tracks 500 of the largest U.S. companies and is a broad indicator of market health. The Nasdaq Composite is heavily weighted toward technology stocks, making it a key barometer for the tech industry. The Dow Jones Industrial Average represents 30 large, established companies, while the Russell 2000 measures the performance of smaller U.S. companies.
NVIDIA and OpenAI Announce Landmark AI Project
The most significant news driving the market was a major partnership in the artificial intelligence sector. NVIDIA announced plans for an investment of up to $100 billion in OpenAI, the company behind ChatGPT.
The investment is intended to fund the construction of a vast network of data centers. The project is designed to have a 10-Gigawatt capacity, a massive scale for computing infrastructure. This initiative aims to significantly expand the capabilities available for developing and running advanced AI models.
NVIDIA CEO Jensen Huang described the collaboration as, "The largest computing project in history."
This announcement has major implications for OpenAI's valuation. The private company was reportedly seeking a secondary share sale that valued it at $500 billion last month. This new investment is expected to push its valuation into a much higher range, far exceeding the $147 billion valuation from October of the previous year.
NVIDIA's Market Value Soars
Following the announcement, NVIDIA's stock (NVDA) increased by 4%. This added an estimated $145 billion to its market capitalization in a single trading session, bringing its total market value to a record $4.5 trillion.
A Pattern of Strategic AI Investments
This deal with OpenAI is the latest and largest in a series of strategic investments by NVIDIA. The company has previously established significant partnerships with other AI service providers, including CoreWeave, Nebius, and Lambda.
However, the scale of the OpenAI project, with its $100 billion ceiling, represents a substantial escalation of NVIDIA's commitment to building the foundational infrastructure for the future of artificial intelligence.
Apple's iPhone 17 Drives Stock Higher
Apple (AAPL) also contributed significantly to the market's positive performance. The company's shares rose by 4.3% on Monday, pushing the stock into positive territory for the year to date.
The rally was fueled by strong early sales figures for the new iPhone 17, which was unveiled just 10 days ago. Despite initial reviews that noted a lack of revolutionary new features, consumer demand has been robust. Current sales are tracking 10% to 15% higher than the iPhone 16 at the same point in its release cycle.
Analysts attribute the strong sales to a combination of the device's sleek design and significant pent-up demand from consumers who were due for an upgrade. This performance has helped Apple's stock recover substantially.
Apple Stock Performance
- Monday's Gain: +4.3%
- Past Month: +12.4%
- Since April Low: +49%
Focus Shifts to Upcoming Economic Data
With Monday's major corporate news digested, market participants are turning their attention to key economic indicators scheduled for release on Tuesday. The S&P flash Purchasing Managers' Index (PMI) for both the services and manufacturing sectors will provide insight into the health of the U.S. economy.
The services sector has been a primary driver of economic growth. The forecast for the September Services PMI is 53.8, a slight decrease from August's reading of 54.5. A reading above 50 indicates expansion, so the sector is still expected to show healthy growth, albeit at a slightly slower pace.
For the manufacturing sector, which has faced more challenges, the forecast is also for continued growth. The Manufacturing PMI is expected to come in at 51.5. This is down from 53.0 in the previous month but remains above the 50-point threshold that separates expansion from contraction. These figures will offer a broader context for the economy's direction beyond the high-flying tech sector.
