Ahmed Kamel – Egypt Daily News
U.S. stocks climbed on Monday, rebounding from recent volatility even as gold and silver prices continued to tumble after dramatic swings that rattled global financial markets.
The S&P 500 rose 0.7%, putting it on track to snap a three-day losing streak. The Dow Jones Industrial Average gained 566 points, or 1.2%, late in the trading session, while the Nasdaq Composite advanced 0.7%.
The rebound in U.S. equities followed a turbulent overnight period marked by sharp losses in Asian markets and subsequent gains in Europe. Investors appeared to rotate away from safe-haven assets and back into riskier sectors, particularly as oil prices fell sharply.
Technology-related stocks helped lead the advance, with companies tied to computer storage extending gains from last week after several earnings reports exceeded expectations. Shares of airlines and cruise operators also rose, benefiting from the steep drop in energy prices, which eases fuel-cost pressures.
Precious Metals Lose Momentum
The focal point of market volatility remained precious metals, where gold and silver have suffered a sudden reversal after a meteoric rise over the past year. Gold prices, which had roughly doubled over the last 12 months, briefly fell below $4,500 per ounce overnight, more than $1,000 below last week’s peak, before rebounding and then settling at $4,652.60, down 1.9% on the day.
Silver prices were even more erratic, swinging from a 9% overnight loss to a brief gain before ending the session down 1.9%. The metal had plunged more than 31% on Friday alone, one of its steepest single-day drops on record.
Gold and silver had surged as investors sought protection against a wide range of concerns, including fears over U.S. stock market valuations, mounting government debt, tariff threats, and worries that the Federal Reserve’s independence could be weakened. That momentum abruptly reversed late last week.
Some investors attributed the selloff to President Donald Trump’s nomination of Kevin Warsh as the next chair of the Federal Reserve. Warsh, a former Fed governor, is viewed by some as more inclined to keep interest rates elevated to fight inflation, reducing the appeal of non-yielding assets like gold and silver. Others on Wall Street, however, remain skeptical of that interpretation, noting that Trump has repeatedly pushed for lower interest rates, which could ultimately support inflation hedges.
According to Darrell Cronk, chief investment officer for Wealth and Investment Management at Wells Fargo, the recent plunge in metals prices is likely driven more by forced selling among leveraged traders than by a fundamental shift in long-term demand. Many investors had borrowed heavily to bet on continued gains, amplifying the downside once prices began to fall.
Corporate Movers and Global Markets
On Wall Street, Sandisk surged 15.1% to lead the S&P 500, building on gains from Friday after posting stronger-than-expected quarterly profits. The company cited robust demand linked to the artificial intelligence boom. That strength helped offset declines in Nvidia, which fell 1.9% despite remaining central to AI-related investment themes.
Losses were far steeper in Asia, where several AI-linked stocks sold off sharply. South Korea’s Kospi index dropped 5.3%, its worst session in nearly 10 months, after memory-chip maker SK Hynix fell almost 9%. Japan’s Nikkei 225 slid 1.3%, while markets in Hong Kong and Shanghai declined 2.2% and 2.5%, respectively. European markets recovered, with major indexes rising about 1%.
Not all U.S. companies shared in Monday’s rally. Walt Disney Co. fell 6.5% despite reporting quarterly profits that exceeded expectations, after warning about weaker international attendance at its U.S. theme parks.
Oil Prices Slide, Bonds Edge Higher
Oil prices dropped more than 4% after Trump said Iran was “seriously talking to us,” raising hopes of improved relations that could keep global oil supplies flowing smoothly. The decline in crude boosted shares of travel-related companies, with Carnival climbing 8.3% and United Airlines rising 5%.
In the bond market, Treasury yields edged higher after data showed U.S. manufacturing expanded last month, defying expectations for a contraction. The yield on the 10-year Treasury rose to 4.27%, slightly above Friday’s close.
Stronger economic data could reinforce the Federal Reserve’s cautious stance on interest-rate cuts. The next major labor-market report, originally scheduled for Friday, has been postponed due to the partial federal government shutdown, adding another layer of uncertainty for investors.
As markets digest shifting expectations around monetary policy, geopolitics, and commodities, Monday’s session underscored the fragile balance between risk appetite and volatility, one that continues to define global financial markets.
