US Stocks Rise as Chipmakers Lead Gains Ahead of Fed Minutes

U.S. equities traded higher on Monday, with semiconductor stocks leading the advance as investors focused on fresh signals of artificial intelligence demand while awaiting the release of the Federal Reserve’s latest policy meeting minutes.

The S&P 500 gained 0.4%, the Nasdaq 100 advanced nearly 1%, and the Dow Jones Industrial Average edged higher, trading above 53,000 for the first time on record.

Chipmakers Extend AI-Driven Rally

Semiconductor shares outperformed the broader market ahead of upcoming sales updates from Samsung Electronics and the planned American depositary receipt (ADR) issuance by SK Hynix later this week.

Memory chip manufacturers were among the session’s strongest performers, with Micron Technology and Sandisk each rising more than 2.5%.

Meanwhile, Nvidia traded higher after its manufacturing partner, Hon Hai Precision Industry (Foxconn), indicated that demand for AI-related infrastructure continues to strengthen.

The gains extended recent volatility across AI-linked stocks, as investors weighed strong demand expectations against concerns that valuations across parts of the artificial intelligence sector have become increasingly stretched.

Recent developments have contributed to that debate, including Meta Platforms’ decision to monetize excess computing capacity and the issuance of SpaceX bonds at high-yield levels following the company’s record-setting initial public offering.

Broader Market Remains Steady

Outside the semiconductor sector, trading was relatively subdued after major indexes posted strong gains during the previous week.

Investors remained cautious ahead of the release of the Federal Open Market Committee (FOMC) meeting minutes, scheduled for Wednesday.

Market participants are expected to examine the minutes for additional insight into how policymakers are balancing persistent inflation pressures against signs of moderation in the U.S. labor market.

The document may also provide further clues regarding the Federal Reserve’s policy outlook for the remainder of the year, particularly as financial markets continue to assess the timing and magnitude of potential interest rate adjustments.

While semiconductor companies continued to provide support for equity markets, broader investor sentiment remained focused on incoming economic data and central bank guidance that could shape expectations for monetary policy in the months ahead.