U.S. stocks traded higher on Monday as investors cautiously repositioned ahead of a pivotal week featuring a Federal Reserve policy decision and earnings from some of the market’s biggest tech companies. The Dow Jones Industrial Average climbed about 0.4%, while the S&P 500 added roughly 0.6% and the Nasdaq Composite rose close to 0.6%, rebounding after back-to-back weekly losses.
The early gains reflected a tentative return to risk-taking as traders balanced enthusiasm around AI-driven growth with mounting macro uncertainty. A sharp drop in the dollar and a surge in gold prices highlighted lingering unease beneath the surface, even as equities found support from mega-cap tech names expected to dominate headlines later this week.
Market Movers:
- USA Rare Earth (USAR) +18%: Shares surged after reports that the U.S. government is preparing a $1.6 billion investment in the company in exchange for a minority equity stake, marking the largest federal commitment yet to the rare earth sector. The move underscored Washington’s growing urgency to secure domestic supplies of critical minerals amid geopolitical tensions and rising competition with China.
- CoreWeave (CRWV) +14%: The stock jumped after Nvidia committed $2 billion to the AI infrastructure company and expanded its strategic partnership to accelerate the buildout of large-scale AI data centers. Investors welcomed the deal as validation of CoreWeave’s role in powering next-generation AI workloads as demand for compute capacity continues to soar.
- Sarepta Therapeutics (SRPT) +12%: Shares rallied after the company released positive three-year data for its Duchenne muscular dystrophy gene therapy, showing a significant slowdown in disease progression compared with external controls. The update strengthened confidence in the therapy’s long-term durability and commercial potential.
- IonQ (IONQ) +5% and SkyWater (SKYT) +8%: Both stocks advanced after IonQ agreed to acquire SkyWater in a cash-and-stock transaction valuing the foundry operator at roughly $1.8 billion. The deal positions IonQ as a vertically integrated quantum computing platform with access to a trusted U.S.-based manufacturing facility.
- Baker Hughes (BKR) +4%: Shares moved higher after the company reported solid quarterly results, highlighted by strong orders and a record backlog that points to multi-year demand visibility. Investors focused on resilient profitability and cash flow despite uneven conditions across traditional energy markets.
Big Tech Earnings in Focus
Attention is on the heavy slate of earnings from some of the Big Tech. Microsoft, Meta, Tesla, and Apple are all set to report results this week, with investors closely watching AI-related spending, cloud demand, and guidance for the year ahead. The reports arrive after Intel’s disappointing outlook last week rattled confidence in parts of the AI supply chain, raising questions about whether capital spending plans will remain as aggressive as markets have assumed. Any signs of moderation in investment could reverberate well beyond the tech sector.
Dollar Weakness and Gold Surge Signal Unease
Outside equities, currency, and commodity markets told a more cautious story. The U.S. dollar slid to a multi-month low, weighed down by renewed trade tensions and speculation about potential coordinated intervention to stabilize foreign exchange markets. The weaker dollar helped propel gold above $5,000 an ounce for the first time, extending a rally driven by haven demand. Some strategists see the divergence between rising stocks and surging safe-haven assets as a sign that investors are hedging aggressively against political risk, policy uncertainty, and the possibility of renewed volatility tied to trade and geopolitics.
Fed Decision Looms
The Federal Reserve’s policy announcement on Wednesday is expected to result in rates being held steady, but investors are focused on the tone of the statement and Chair Jerome Powell’s press conference. Divisions among policymakers and rising pressure from the White House have heightened sensitivity around any signals on the timing of future rate cuts. Markets are also watching closely for developments around Trump’s expected decision on a successor to Powell, a factor that could add another layer of uncertainty to monetary policy expectations in the months ahead.
Looking Ahead
With a Fed decision, heavyweight tech earnings, and ongoing geopolitical concerns, markets are entering a decisive stretch. While Monday’s gains suggest investors are willing to lean back into risk, the durability of the rally will depend on whether earnings and policy signals can justify current valuations. Volatility is likely to remain elevated as traders navigate competing forces — resilient corporate profits on one hand, and political, monetary, and macro risks on the other — setting the tone for the rest of the quarter.