Stocks Close Higher on M&A and AI Optimism

Market Performance - The S&P 500 Index rose by +0.10%, while the Dow Jones Industrials Index fell by -0.52%, and the Nasdaq 100 Index increased by +0.37% on Monday [1] - December E-mini S&P futures rose by +0.09%, and December E-mini Nasdaq futures rose by +0.35% [1] AI and M&A Activity - US stocks were supported by optimism in AI following OpenAI's acquisition of $38 billion in AI computing power from Amazon [2] - Kimberly-Clark announced a $40 billion acquisition of Kenvue, the maker of Tylenol, involving both stock and cash [2] - Eaton agreed to acquire Boyd's thermal business for $9.5 billion, which is related to data centers [2] Federal Reserve Commentary - Fed Governor Stephen Miran expressed that current Fed policy is too restrictive and suggested that neutral policy is significantly below current levels [4] - Fed Governor Lisa Cook indicated that the risk of labor-market weakness outweighs the risk of increased inflation, but did not commit to an interest rate cut in December [5] - Chicago Fed President Austan Goolsbee expressed more concern about inflation than the job market, stating that interest rates could still decrease significantly, but should align with inflation trends [6] Economic Indicators - The October ISM manufacturing index fell by -0.4 points to 48.7, which was below expectations for a rise to 49.5, indicating continued contraction since March 2025 [7] - The October ISM prices paid index decreased by -3.9 points to 58.0, which was weaker than expectations of an increase to 62.5 [7]