U.S. Stocks Rise as Meta and SpaceX Fund AI

U.S. stock markets rose on Monday, with the S&P 500 increasing 0.7% and the Nasdaq composite gaining 0.8%, driven largely by a 2.4% jump in Nvidia. The gains occurred as major technology firms aggressively funded artificial intelligence infrastructure. Meta Platforms announced plans to raise up to $95 billion for AI investments, while Space Exploration Technologies Corp. closed a $40 billion deal with Apollo Global Management to lease computing power.

Despite the market growth, Elon Musk warned that companies relying on rented AI power face "guppy-level death and consolidation" because of borrowing difficulties. Investors are now looking toward upcoming quarterly earnings from Alphabet, Microsoft, and Amazon, as well as a Wednesday interest rate decision from the Federal Reserve System.

Global markets saw divergent results. Brazilian stocks fell approximately 14% following the reelection of President Luiz Inácio Lula da Silva, which triggered investor fears regarding government spending. Simultaneously, diplomatic delegations from Saudi Arabia, Pakistan, and Turkey met in Tehran to attempt to prevent renewed conflict between Iran, Israel, and the United States.