S&P 500 rises to start week, AMD lifts the Nasdaq

The S&P 500 and the Nasdaq Composite rose on Monday as AMD shares surged on a partnership with OpenAI.

The broad market S&P 500 gained 0.4%, while the tech-heavy Nasdaq advanced 0.7%. The Dow Jones Industrial Average, however, fell 126 points, or 0.3%, weighed down by a decline in shares of Home Depot and Verizon.

The S&P 500 and Nasdaq saw a boost from AMD jumping more than 20% after the company reached a deal with Sam Altman's AI leader that could ultimately end up giving the ChatGPT company a 10% stake in the chipmaker. AMD will use certain graphics processing units rolled out over multiple years. Nvidia, AMD's main competitor in graphics processors, came under pressure following that announcement.

Meanwhile, Comerica shares rallied more than 10% after Fifth Third Bancorp reached a deal to buy the fellow regional bank for $10.9 billion in an all-stock transaction. The merger will form the ninth-largest U.S. bank by assets. The SPDR S&P Regional Banking ETF jumped on expectations more deals were ahead in the space. Overall M&A has been picking up, adding to the animal spirits seen in the stock market this year.