Strong gains AI companies push markets higher

Stock Market Highlights Across the Globe

United States Markets Extend Recovery

U.S. equity markets continued their rebound Monday as technology shares extended gains following last week's artificial intelligence driven selloff. The S&P 500 rose 0.56% to 6,971 points, while the Nasdaq added 0.5% and the Dow Jones Industrial Average inched higher despite broader weakness across most constituent stocks.

The rally came after a surge that added $1 trillion to the S&P 500's market value at the end of last week. Technology firms that were at the center of recent declines led Monday's advance, with a gauge of chipmakers climbing 1.6%. Oracle Corporation jumped 11%, while an exchange traded fund focused on software names extended a back-to-back advance to 6.5%.

AI infrastructure companies posted strong gains, with Nvidia , Broadcom , and Advanced Micro Devices each rising around 3%. Palantir and Oracle soared 4.5% and 8%, respectively, reflecting positive momentum for data services providers.

However, market breadth remained weak. The Dow Jones Industrial Average posted losses of 159 points as declines in Amazon , Merck KGaA , and Amgen offset gains from chipmakers and technology firms.

Investors remained focused on a critical week of economic data releases. The delayed January employment report, scheduled for Wednesday, and consumer price index data due Friday will provide crucial insights into Federal Reserve policy direction. Markets expect the jobs report to show the economy added 60,000 positions last month, up from 50,000 in December.

Asian Markets Surge on Technology Rebound

Asian equity markets posted substantial gains Monday, with the MSCI Asia Pacific Index surging 2.4% to reach an all-time peak. The rally tracked Friday's strong finish on Wall Street and reflected renewed confidence in technology stocks.

Japan's Nikkei 225 delivered the region's strongest performance, climbing an impressive 5.7% following Prime Minister Takaichi's election victory over the weekend. The ruling Liberal Democratic Party claimed a supermajority, solidifying Takaichi's position and her commitment to suspending the food sales tax for two years.

South Korea's Kospi Index, heavily weighted toward artificial intelligence investments, jumped 4.2%. India's benchmark indices also advanced strongly, with the BSE Sensex surging 597 points to 84,177.51 and the Nifty adding 195 points to 25,888.70. State Bank of India led gains among Indian equities, jumping 6.08% in early trading.

Mainland Chinese markets showed mixed performance. The Shanghai Composite slipped 0.25%, while technology shares rebounded with Suzhou TFC Optical surging 17.8% and Zhongji Innolight gaining 4.8%. Resource-related firms advanced as precious metals recovered, with Zijin Mining up 3.9%.

European Markets Trade Higher

European stock markets opened with gains and maintained positive momentum through Monday's session. The pan European Stoxx 600 rose 0.47% to 6,027 points, while major national indices also advanced.

Germany's DAX climbed 1.0% as the index continued its recovery from last week's technology sector weakness. The FTSE 100 gained 1.2%, while France's CAC 40 added 0.7%. Gains were led by industrial and technology names, with ASML Holding, Siemens , and STMicroelectronics among the top performers.

European markets demonstrated resilience despite ongoing concerns about software valuations and artificial intelligence disruption. The recovery came as investors continued to assess corporate earnings updates and economic data showing the eurozone economy grew 0.3% in the fourth quarter, exceeding forecasts.

Commodities Markets Show Volatility

Precious metals continued to experience heightened volatility following recent dramatic swings. Gold rose more than 1% to above $5,020 per ounce Monday, reaching its highest level in over a week. The advance was supported by a weaker U.S. dollar as traders awaited key economic data.

China's central bank extended its gold purchases for the 15th consecutive month in January, signaling sustained institutional demand. Markets are monitoring ongoing U.S.-Iran diplomatic talks, with both sides agreeing to continue discussions this week.

Bitcoin remained under pressure, trading below $70,000 after dipping 2.5% near the $69,000 support level. The cryptocurrency has declined sharply from its October record high above $126,000, facing headwinds from broader risk-off sentiment.

Currency and Rates

The U.S. dollar weakened across major pairs Monday. EUR/USD rose 0.5% to 1.1875, while GBP/USD gained 0.3% to 1.3647. The dollar index fell 0.17% as equity market strength reduced liquidity demand for the greenback.

The Japanese yen remained in focus after verbal intervention warnings from Tokyo officials. USD/JPY hovered around 156.40-60 levels, down approximately 0.5% on the day despite heightened intervention risks.

Market Outlook

Financial markets enter a critical period for economic data releases. Wednesday's employment report and Friday's inflation data will provide crucial information about the Federal Reserve's interest rate trajectory. San Francisco Fed President Mary Daly indicated last Friday it may be necessary to cut rates once or twice to address weakening labor market conditions.

Investor sentiment remains cautiously optimistic as markets digest the recent rotation from software stocks toward traditional cyclical sectors and AI infrastructure providers. The week ahead features significant corporate earnings releases, including reports from Coca Cola, Ford Motor, and several major financial services firms.