U.S. stocks saw modest gains Monday, led by energy, AI, and rare earth sectors, while gold soared to a new record of over $5,100 per ounce, driven by investor demand for safe havens amidst tariff threats and inflation. All eyes are on the upcoming Federal Reserve interest rate decision and major tech earnings.
On Monday, U.S. stock indexes experienced slight increases, with the S&P 500 rising 0.5%, the Dow Jones Industrial Average climbing 0.6%, and the Nasdaq composite adding 0.4%. Key movers included Baker Hughes, up 4.4% on strong profits from liquefied natural gas demand, and CoreWeave, which gained 5.7% after Nvidia announced a $2 billion investment to boost its AI infrastructure. USA Rare Earth also rallied 7.9% following significant federal funding and private investment. In contrast, airlines saw mixed results due to winter storm disruptions, and Nvidia dipped slightly. The most significant market action was in precious metals, where gold surged 2.1% to an unprecedented $5,100 per ounce, and silver climbed 14%. This surge reflects investors seeking refuge from global uncertainties, including ongoing tariff threats (like President Trump's proposed 100% tariff on Canadian goods if it signs a deal with China), persistent inflation, political instability, and mounting government debt. The U.S. dollar continued its decline, particularly against the Japanese yen, amid speculation of market intervention. The week ahead is set to be pivotal, with the Federal Reserve's interest rate decision on Wednesday — where a steady hold is anticipated despite previous cuts, given stubborn inflation — and comments from Chair Jerome Powell expected to influence markets. Additionally, major tech giants like Meta Platforms, Microsoft, Tesla, and Apple are scheduled to release their latest earnings reports. The 10-year Treasury yield eased to 4.21%, while international markets were mixed, with Japan's Nikkei 225 notably dropping 1.8% due to the stronger yen's impact on exporters.
