Nvidia is approaching a record $6 trillion market capitalisation as the AI trade powers US stocks to new highs. The Nasdaq closed at a record high on Monday, and the S&P 500 sits less than 1 percent from its own record.

Elon Musk has become a trillionaire again on the back of gains in Tesla and SpaceX. BNP Paribas raised its Nvidia price target to $345 from $285, while investor Dan Niles called Nvidia the tip of the spear for the AI trade.

Nvidia shares closed at a record $238.90 on October 5, taking its market value to around $5.7 trillion. The company recently raised its share-buyback authorisation by $150 billion. Options markets now price roughly a 50 percent chance that Nvidia crosses $6 trillion by the end of October.

The rally came as oil prices and bond yields eased. WTI crude fell 2.3 percent to $87.40 a barrel, while the 10-year Treasury yield pulled back to 5.26 percent after touching a 24-year high of 5.31 percent.

Gold futures rose 1 percent to $4,205 an ounce, and bitcoin traded around $86,100. Markets now watch whether the Federal Reserve will raise rates again later this month.