Stocks rise as Paul Tudor Jones points to “massive rally” before blow off top

Stocks rose slightly on Monday as Wall Street opened on a positive note, with Paul Tudor Jones saying he sees stocks hitting new record highs before a blow-off top.

The Dow Jones Industrial Average gained 76 points, while the S&P 500 and Nasdaq Composite added 0.3% and 0.5%, respectively. Fresh gains for the S&P 500 and Nasdaq Composite follow last week’s overall uptick, the fourth positive weekly close for the benchmark and tech-heavy indexes in the past five weeks.

Stocks edged up last week despite the U.S. government shutdown, with investors buoyed by major deals related to artificial intelligence.

Nvidia, AMD, Intel, and OpenAI have featured prominently in multimillion-dollar AI deals over the past few days, and on Oct. 6 the shares of AMD popped more than 30% in premarket trading after news of a partnership between the company and major AI startup OpenAI.

Stocks rally to continue? 

Paul Tudor Jones, founder and chief investment officer of Tudor Investment Corporation, thinks there’s more room for stocks to rally. In an interview with CNBC’s “Squawk Box,” he discussed the market outlook amid the U.S. economy in its current state, noting the market still has room for more gains before bulls run out of steam.

According to Paul Tudor Jones, stocks could still surge past the next levels before an extended upside ends in a “blow-off” top.

His comments come as analysts project a run above 7,000 for the S&P 500, and Jones views the prevailing market conditions as supportive of a rally into 2026. The tech landscape offers the potential for this perspective, with Wall Street’s setup in 2025 unlike the conditions that preceded the 1999 tech bubble.

The U.S. deficit and the Federal Reserve’s easing cycle are likely tailwinds that could see equities jump higher before a sudden and steep dip next year.

Gold, Bitcoin edge higher

The fact that investors have largely shrugged off jitters around the shutdown has also seen crypto post key gains. In fact, Bitcoin ( BTC ) pumped to a new all-time high above $125,700 and could edge higher as the shutdown drags.

Meanwhile, investors taking a fresh bullish stance on safe-haven assets has also elevated gold. The precious metal has hit a new record high above $3,900.