Stocks edged higher on Monday after a volatile stretch in commodities and crypto rattled sentiment, with investors stepping back into equities as earnings season intensified. The Dow Jones Industrial Average jumped roughly 0.9%, while the S&P 500 added about 0.5%. The Nasdaq Composite rose near 0.6%, recovering from early weakness as tech stabilized following last week’s sharp reversals.
The rebound comes after a dramatic unwind in precious metals and fresh turbulence in digital assets. Gold and silver posted violent swings across global trading hours, while bitcoin slipped below key levels over the weekend, creating cross-asset pressure that initially spilled into equities before buyers emerged.
Market Movers:
- AMD (AMD) +4%: Shares gained as investors positioned ahead of upcoming earnings, with the chipmaker viewed as a key beneficiary of ongoing AI infrastructure spending. Strength in data center demand expectations continues to offset broader volatility in semiconductor names.
- Palantir (PLTR) +2%: The stock rose as traders leaned into software names with government and defense exposure, seen as more insulated from consumer demand swings. Ongoing AI-related contract momentum remains central to the bullish narrative.
- Nvidia (NVDA) -1%: Shares slipped after reports suggested uncertainty around a previously discussed large-scale AI investment initiative. Even modest pullbacks in Nvidia tend to ripple across sentiment given its central role in the AI trade.
- Silver Futures (SI=F) -0.2%: Silver remained volatile after logging one of its sharpest recent drawdowns, as traders reassessed speculative positioning following an extended rally. The metal’s swings have amplified cross-market risk sentiment.
- Bitcoin (BTC-USD) +2% (off lows): The cryptocurrency rebounded slightly after dropping below $80,000 over the weekend, though price action remains fragile. Crypto volatility has reintroduced risk-off undertones into broader markets at times.
Earnings Flood Keeps Stock Pickers Busy
Corporate results remain the key driver. Big Tech and AI-linked names continue to trade sharply around guidance and spending commentary, with investors distinguishing between companies directly monetizing AI demand and those still in heavy investment mode. This week’s lineup includes several heavyweight reports that could reset expectations for cloud growth, AI capital spending, and enterprise demand. With valuations stretched in parts of tech, earnings execution is increasingly dictating direction more than macro headlines alone.
Policy and Economic Signals in Focus
Markets are also recalibrating after the nomination of Kevin Warsh to lead the Federal Reserve, a move that has spurred debate about the future path of rates and balance sheet policy. While traders still expect rate cuts later this year, leadership uncertainty is adding another layer of unpredictability. On the economic front, manufacturing data surprised to the upside, signaling firmer production activity to start the year. Still, attention is quickly turning to Friday’s jobs report, which could reshape rate expectations if labor market momentum deviates from forecasts.
Looking Ahead
Volatility across assets — from metals to crypto to tech — is reinforcing a more tactical tone in markets. Earnings results and forward guidance will likely drive near-term moves, while macro data and Fed expectations set the broader backdrop. If economic data holds steady and corporate outlooks remain supportive, equities may continue to absorb cross-asset shocks. But with positioning still sensitive and major reports ahead, sharp swings are likely to remain part of the landscape this week.