United States equity benchmarks opened the new trading month on a firmer footing on Monday (Tuesday AEDT), with investors looking beyond a sharp sell-off in precious metals and bitcoin, while corporate earnings and fresh economic data guided sentiment.
The Dow Jones Industrial Average rose 515.2 points or 1.1% to close at 49,407.7, the S&P 500 gained 37.4 points or 0.5% to 6,976.5, and the Nasdaq Composite advanced 130.3 points or 0.6% to 23,592.1.
Smaller companies outperformed, with the Russell 2000 jumping 130.3 points or 0.6% to 2,640.3, significantly outpacing both the S&P 500 and Nasdaq so far in 2026.
Market attention initially centred on renewed volatility in alternative assets. Bitcoin fell below $80,000 for the first time since April, signalling a pullback in risk appetite after steep declines in gold and silver at the end of last week.
Silver, which has more than doubled over the past 12 months, plunged about 30% on Friday, marking its worst single-day performance since 1980. Gold also slid roughly 10% during the same session.
However, both cryptocurrencies and precious metals later recovered from their intraday lows on Monday, helping to stabilise broader risk sentiment.
In the technology sector, Nvidia drew investor scrutiny amid fresh questions over the strength of the artificial intelligence investment theme.
The Wall Street Journal reported, citing people familiar with the matter, that Nvidia’s plans to invest US$100 billion into OpenAI had stalled, with company executives expressing doubts about the deal.
Nvidia shares fell 2.9%, weighing modestly on the chip sector.
Energy stocks were also under pressure as oil prices declined. U.S. President Donald Trump said Iran was “seriously talking” with Washington, remarks that pointed to potential de-escalation and reduced fears of supply disruptions.
The pullback in crude prices dragged the S&P 500 energy sector lower.
Lower fuel costs, however, lifted airline shares. United Airlines lifted 4.9%, JetBlue surged 8.2%, Delta Air Lines gained 4.8%, and Southwest Airlines added 4.5%.
Corporate earnings remained a key focus, with more than 100 S&P 500 companies due to report this week. Amazon and Alphabet both traded higher on Monday ahead of their updates.
While the broader earnings season has been viewed as strong, several high-profile companies have experienced post-results declines, including Microsoft.
Disney was among the early reporters this week, posting earnings that exceeded analyst expectations. Nevertheless, its shares dropped 7.4% after the company warned of headwinds linked to international travellers visiting domestic theme parks.
So far, around one-third of S&P 500 constituents have reported results, and roughly 75% have beaten expectations, according to FactSet Earnings Insight data.
On the political front, the House of Representatives took up legislation aimed at ending a partial government shutdown that began on Saturday, with a final vote expected on Tuesday.
The Bureau of Labor Statistics said the closely watched January employment report would not be released on Friday because of the shutdown, removing a key data point from the week’s calendar.
Economic data offered a brighter signal from the manufacturing sector. U.S. factory activity expanded for the first time in a year in January, as businesses placed new orders following the holiday season.
The Institute for Supply Management said its manufacturing Purchasing Managers’ Index rose to 52.6, the first reading above 50 in 12 months and the highest level since August 2022. Markets were expecting a reading of 48.5.
On the bond markets, 10-year and 2-year rates were up 1% and 1.5% to 4.281% and 3.576%, respectively.
