(C) Money Control
NEW YORK — The New York stock market closed higher on Monday as robust demand for Artificial Intelligence (AI) infrastructure and high expectations for corporate earnings lifted investor sentiment. In contrast, precious metals and crude oil faced significant downward pressure due to shifting political appointments at the Federal Reserve and easing geopolitical tensions.
Equities: S&P 500 Nears Historic 7,000 Mark
Despite a shaky start triggered by a sell-off in Asian markets, the three major U.S. indices staged a mid-day comeback. The Dow Jones Industrial Average climbed 515.19 points (1.05%) to finish at 49,407.66. The S&P 500 rose 37.41 points (0.54%) to 6,976.44, narrowly missing its all-time closing high of 6,978.60. The tech-heavy Nasdaq Composite gained 130.29 points (0.56%), ending at 23,592.11.
The rally was spearheaded by the semiconductor sector. SanDisk skyrocketed 15.44% following reports of massive AI-related investment, while other industry giants followed suit:
Western Digital: +7.94%
Seagate: +6.20%
Micron: +5.51%
Intel: +5.04%
Blue-chip tech also provided heavy lifting. Apple jumped 4.06% following its recent strong earnings report, while Alphabet (+1.71%) and Amazon (+1.53%) rose in anticipation of their upcoming financial disclosures.
Commodities: Gold, Silver, and Oil in Retreat
While stocks flourished, the commodities market remained in turmoil. Spot Gold fell 3.8% to $4,679.50 per ounce, extending a downward trend after hitting a record high above $5,500 last week. Analysts attribute this "gold sickness" to the nomination of Kevin Warsh as the next Federal Reserve Chair. Warsh is perceived as less "dovish" than previous candidates, which has bolstered the dollar and dampened the appeal of non-yielding assets.
Silver experienced even more volatility, dropping 9.2% to $76.81 per ounce. This follows a staggering 30% plunge in the previous session, as speculative bubbles in precious metals continue to deflate.
Meanwhile, energy prices cratered after President Donald Trump signaled a potential diplomatic breakthrough with Tehran. Speaking from his Mar-a-Lago resort, Trump expressed optimism about reaching a deal with Iran. Consequently, Brent crude fell 4.4% to $66.30, and West Texas Intermediate (WTI) dropped 4.7% to settle at $62.14.
Market Outlook
The divergence between the booming equity market and the crashing commodity sector highlights a shift in investor "regime." Capital is rotating out of safe-haven assets and back into growth-oriented tech and cyclical stocks as U.S. economic indicators remain resilient. The Russell 2000, representing small-cap stocks, also rose 1.02%, suggesting a broad-based confidence in domestic economic improvement.
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