Stocks Open Higher as AI Optimism and Fed Hopes Buoy Markets; Oil Rises, Gold Steady

U.S. stocks edged higher at the open Monday, extending last week’s momentum as optimism around artificial intelligence, easing interest rate expectations, and strength in technology shares continued to drive sentiment.

The Dow Jones Industrial Average gained 66 points, or 0.14%, to 45,900.50. The S&P 500 advanced 23 points, or 0.35%, to 6,607.46, while the Nasdaq Composite added 102 points, or 0.46%, to 22,243.20. The small-cap Russell 2000 rose 0.37% to 239.23 at the opening bell.

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In commodities, crude oil (October contract) climbed 0.81% to $63.20, extending its rebound amid signs of tightening supply. Gold (December contract) held nearly flat at $3,685.40, down just 0.03%, as investors weighed safe-haven demand against rising equity appetite.

The gains come as investors digest broader structural forces reshaping markets. Apollo Global Management chief economist Torsten Sløk noted that passive investing's dominance —through index funds and ETFs—has “contributed to reduced price elasticity and market responsiveness, which, in turn, have led to amplified price movements, decreased liquidity, and increased concentration” in mega-cap stocks such as Apple, Microsoft, and Nvidia.

Against that backdrop, technology stocks remain in focus. Wedbush Securities analysts, led by Daniel Ives, reaffirmed their Outperform rating on Tesla, projecting the company’s autonomous driving and AI initiatives could unlock $1 trillion in value over the next few years. The analysts believe Tesla is positioned to scale its robotaxi operations across 30 to 35 U.S. cities in the coming year, placing the company “in a pole position to be a clear leader in the autonomous market opportunity”.

Broader market expectations are also shifting upward. Jay Hatfield, CEO of Infrastructure Capital Advisors , raised his year-end 2025 S&P 500 target from 6,600 to 7,000, citing “continuing momentum in AI-related earnings growth and increased visibility on Fed rate cuts.” He projected GDP growth could accelerate to 3% in 2026 as housing and construction recover and AI-related investment continues to expand.

Together, optimism about AI-driven growth, easing monetary policy, and rising energy prices helped set a positive tone as Wall Street kicked off the week.