US stocks surged to record levels Monday morning as investors largely ignored the ongoing government shutdown, now in its sixth day, and focused instead on major corporate developments signaling continued growth in the artificial intelligence sector.

The S&P 500 rose 0.3% by 9:35 a.m. in New York, marking its seventh winning week in nine, while the Nasdaq 100 climbed 0.8%. Advanced Micro Devices Inc. (AMD) soared 31%—its largest gain since April 2016—after announcing a partnership with OpenAI to provide AI infrastructure, a deal AMD projects could generate tens of billions of dollars in revenue. Rival Nvidia Corp. fell 2.2% following the news.

Banking stocks also drove the market higher. Comerica Inc. surged 16% after Fifth Third Bancorp agreed to acquire the bank in a $10.9 billion stock deal, the largest US bank merger of the year. Tesla Inc. gained 3.2% ahead of a teased product announcement, while a group of major tech stocks, including Apple Inc. and Meta Platforms Inc., remained mostly flat.

Despite the shutdown, investors remain focused on earnings and the potential for further Federal Reserve interest rate cuts. Last week’s alternative job indicators pointed to slower hiring, reinforcing expectations of future rate reductions. Historically, government shutdowns have had minimal impact on the stock market, a pattern that appears to be repeating. “The stock market is shrugging off the government shutdown and is more focused on earnings optimism and the prospect of additional Federal Reserve rate cuts,” said Robert Edwards, chief investment officer at Edwards Asset Management.

Micron Technology rose 4.4% after Morgan Stanley upgraded it to overweight, citing expectations for multiple quarters of double-digit price growth. Cryptocurrency-linked stocks also rallied, following Bitcoin’s weekend surge past $125,000. Strategy, Circle Internet Group, Riot Platforms, and MARA Holdings all gained, while Critical Metals jumped 49% after reports that the Trump administration considered taking a stake in the mining company.

Corporate earnings season begins next week, starting with JPMorgan Chase & Co. on October 14. Analysts, including Goldman Sachs strategists led by David Kostin, anticipate a stronger-than-expected earnings season, particularly for the so-called Magnificent Seven technology leaders, buoyed by a robust economy and accelerating AI investments.