U.S. Stocks Edge Up as Global Markets Rally; Gold, Silver, and Bitcoin Show Stability

U.S. Stocks Climb as Global Markets Rally, Gold and Bitcoin Stabilize

NEW YORK (AP) — U.S. stocks experienced a modest uptick on Monday, buoyed by significant gains in Asian markets earlier in the day. The S&P 500 rose by 0.5%, inching closer to its all-time high set just two weeks ago, while the Dow Jones Industrial Average added a mere 20 points, and the Nasdaq composite surged by 0.9%.

The positive momentum in the U.S. followed a remarkable 3.9% leap in Japan’s Nikkei 225, which reached a record high after Prime Minister Fumio Kishida’s political party secured a landslide victory in parliamentary elections. Analysts believe this win will empower Kishida to implement reforms aimed at invigorating the economy and enhancing market performance.

Despite the recent rally, Wall Street remains cautious. Investors are grappling with concerns that stock valuations may have become excessive following a series of record highs. Additionally, there are apprehensions regarding whether the substantial investments by major tech companies in artificial intelligence will yield sufficient returns.

Among the day’s notable gainers, chip manufacturers led the charge, with Nvidia climbing 2.4% and Broadcom rising 3.3%, both contributing significantly to the S&P 500’s ascent. Kroger shares surged by 3.9% after the grocery giant appointed a former Walmart executive as its new CEO. Meanwhile, Transocean rebounded from an early loss, soaring 5.9% after announcing a $5.8 billion all-stock acquisition of Valaris, which itself skyrocketed by 34.3%.

On the flip side, Hims & Hers faced a steep decline, plummeting 16% after Novo Nordisk filed a lawsuit alleging the company unlawfully marketed versions of its weight-loss treatments. Hims & Hers responded defiantly, claiming that “Big Pharma is weaponizing the U.S. judicial system to limit consumer choice.” In contrast, Novo Nordisk’s stock rose by 3.6%.

Workday also faced challenges, with shares dropping 5.1% following the announcement that CEO Carl Eschenbach would step down, paving the way for co-founder Aneel Bhusri to return as chief executive.

The S&P 500 closed up 32.52 points at 6,964.82, while the Dow Jones Industrial Average finished at 50,135.87, up 20.20 points. The Nasdaq composite gained 207.46 points, closing at 23,238.67.

In the bond market, Treasury yields remained stable ahead of key economic reports expected later this week. Investors are keenly awaiting the latest updates on the job market and inflation, both of which could influence the Federal Reserve’s interest rate decisions. Currently, the Fed has paused rate cuts, but a weakening job market could prompt a shift.

In commodities, gold rose 2% to settle at $5,079.40 per ounce, while silver experienced a dramatic 6.9% increase. Bitcoin hovered just below $71,000 after a weekend surge, recovering from a dip that saw it fall below $60,000 last week.

Internationally, Asian markets enjoyed a robust day, with South Korea’s Kospi jumping 4.1%, while Hong Kong and Shanghai saw gains of 1.8% and 1.4%, respectively. European markets also showed positive movement, with Germany’s DAX rising 1.2% and France’s CAC 40 increasing by 0.6%.

As investors navigate a complex landscape of economic indicators and market dynamics, the outlook remains cautiously optimistic, with many hoping for continued stability and growth in the coming weeks.