U.S. stock indexes saw modest gains Monday, but the real action was in precious metals, with gold hitting a new record above $5,100 per ounce and silver surging, as investors sought safety amid global economic anxieties, tariff threats, and upcoming major financial announcements from the Federal Reserve and tech giants.
On Monday, U.S. stock indexes experienced slight increases, with the S&P 500 rising 0.6%, the Dow Jones Industrial Average up 0.3%, and the Nasdaq composite 0.6% higher. Key movers included Baker Hughes, up 3% on strong profits and LNG demand, CoreWeave, which jumped 9.7% after a $2 billion Nvidia investment to accelerate AI factory buildout, and USA Rare Earth, which leaped 11.4% following a $277 million U.S. government investment and a proposed $1.3 billion loan. Nvidia itself slipped 0.5%, and airlines had mixed performances due to winter storms. The most significant activity occurred in the commodities market, where gold rallied another 2.2% to briefly top $5,100 per ounce, setting a new record, and silver surged nearly 12%. This surge in precious metals is attributed to investors seeking safer assets amidst concerns over tariffs (including a recent threat from Donald Trump against Canada), persistent inflation, political strife, and global government debt. In currency markets, the U.S. dollar continued its decline, while the Japanese yen sharply appreciated against it, driven by expectations of market intervention from both Japanese and U.S. officials. The financial markets are anticipating a volatile week ahead with several major events. The Federal Reserve is set to announce its latest interest rate decision on Wednesday, with most economists expecting rates to hold steady despite previous cuts and indications for more in 2026, as inflation remains above the 2% target. Additionally, influential tech companies like Meta Platforms, Microsoft, Tesla, and Apple are scheduled to release their earnings reports. In the bond market, the yield on the 10-year Treasury eased to 4.21%. International stock markets were mixed, with Japan's Nikkei 225 dropping 1.8%, partly due to a stronger yen potentially hurting exporters like Toyota Motor.
