Why the Dow Jones is gaining almost 1% today: Dow jumps more than 400 points today: Why the Dow Jones is gaining almost 1% after the metals shock – can it last?
The rebound was not driven by a single catalyst. Instead, it reflected a reset in risk appetite after precious metals clawed back most of their year-to-date gains, easing fears of a deeper liquidity shock. At the same time, investors absorbed new uncertainty around Nvidia’s AI investment plans without triggering another technology-driven selloff.
late in the morning, S&P 500 rose around 0.5 percentMeanwhile Nasdaq Composite rose about 0.7% to 23,618recovered from early weakness in technology stocks. The message from the markets was clear: volatility remains high but panic selling has abated.
This jump also emerged against a changing macro backdrop. The US dollar has strengthened, Bitcoin has fallen below $80,000, and expectations for Federal Reserve policy remain delicately balanced. Traders are still pricing Two interest rate cuts by the end of the yearMonday’s gains reflected cautious optimism rather than outright risk-taking enthusiasm.
The collapse of silver and gold is seen by many institutional authorities not as a sign of economic weakness but as a “healthy reset” of overleveraged speculative trading. This liquidity shifts outward Dow It suggests a return to fundamentally focused investments.
Dow Jones rises as gold and silver volatility eases market stress
The main engine behind the Dow 400 point jump what was it January ISM Manufacturing PMI. unexpectedly escalated 52.6%The highest level since 2022. 48.3% consensus forecast. Key underlying metrics confirmed a broad industrial recovery:
- New Orders Index: rose 9.7 points with 57.1%.
- Production Index: rose 55.9% As factories increase production.
- Creating Inventory: Companies expanded their inventories at the fastest pace in years to hedge against future business changes.
President Trump’s choice Kevin Warsh The next Fed Chairman acted as a stabilizing force for stocks. While commodity traders view Warsh as a hawk 30% silver crash– stock investors interpreted his candidacy as a return to fiscal discipline. US Dollar Index (DXY) climbed 97.57is pulling liquidity away from precious metals and redirecting it into blue-chip stocks. Market leadership has seen a major passing of the baton in retail. Walmart (WMT) shares reached record levels John Furner He took over as CEO as the company’s market value approached 1 trillion dollars. Meanwhile, Target (TGT) rose 2.17% despite facing long-term sales headwinds.
In technology, Nasdaq (^IXIC) acquired 0.67% with 23,618.83reports largely ignored Nvidia (NVDA) $100 billion OpenAI investment was pending. Investors are now turning to Fridays Non-Farm Employment Payrollshere is a win 65,000 jobs It is expected to confirm a “soft landing” for the 2026 economy.
AI trade reconsidered as Nvidia headlines fail to derail stocks
Another development entering the session was renewed uncertainty regarding AI trading. shares Nvidia The decline followed reports that the chipmaker was proposing a $100 billion investment. OpenAI He was effectively on ice. While Nvidia’s CEO Jensen Huang downplayed the significance of the issue, the headline reignited concerns that AI capital spending could peak sooner than expected.
More importantly, the market reaction was limited. Rather than triggering a broader tech unwind, investors treated the news not as a reversal of the AI growth story but as a recalibration of timelines. This was important for the Dow because calmer trading in mega-cap tech eased spillover pressure on the industrial and financial sectors. The ability of stocks to absorb negative AI headlines without suffering consecutive losses helped fuel the day’s rally.
Earnings season leads to divergence but supports Dow stability
Corporate earnings continue to be the key driver of market direction, and this week’s schedule is busy. Reports: Amazon, AlphabetAnd Advanced Micro Devices will be delivered later in the week, whereas Disney And palantir report sooner.
Big Tech dominated market movements at the start of 2026, often pushing indexes in opposite directions on declines or losses in earnings. The Dow’s strength on Monday reflected its composition: greater exposure to cash-generating, mature businesses and less sensitivity to valuation shocks in fast-growing technology. This dynamic has made the index a relatively safe haven as investors brace for potentially volatile earnings reactions elsewhere.
Dollar strength, bitcoin decline
Beyond stocks, intermarket signals offered important context. Bitcoin fell below $80,000 for the first time since AprilIt is trading around $78,000 and is extending losses following last week’s volatility. Meanwhile, US dollar index increased by 0.4 percentIt strengthened most against commodity-related currencies. A strengthening dollar usually puts pressure on risk assets, but Monday’s stock gains showed investors view the move as regular rather than destabilizing.
Jobs report looks like next big catalyst for Dow
Looking ahead, the most important short-term test of the rally will be Friday’s US jobs report. Economists are waiting 65,000 jobs added in JanuaryWith the unemployment rate remaining constant 4.4%. A near-expected print would reinforce the narrative of a slowing but resilient labor market and support hopes for an eventual rate cut without plunging the economy into recession.
Today’s Hot Stocks: Winners and Losers
Extreme differences were seen in the field of trade, especially in the technology and pharmaceutical sectors.
Top Earners:
- Aquestive Therapeutics (AQST): +42.83% ($4.21) Shares soared after the company received a “clear path to approval” from the FDA. Despite the Full Response Letter for the epinephrine film Anaphylm, investors were delighted by the fact that there was no need for new clinical trials, only minor packaging and labeling tweaks.
- Intel (INTC): +5.16% ($48.87) Intel outperformed the S&P 500 as CFO David Zinsner signaled great confidence. $250,000 insider buy. Rumors of a new foundry agreement with Nvidia for 2028 chips also created a strong headwind.
- US Rare Earth (USAR): +7.54% ($24.11) As the manufacturing sector gains momentum, the trend towards self-sufficiency of the domestic industry is taken advantage of.
Notable Losers:
- NVIDIA (NVDA): -1.11% ($189.01) Profit-taking continued after reports emerged that the massive $100 billion OpenAI investment plan was “on ice.”
- Robinhood (HOOD): -7.34% ($92.18) Platform suffers losses as Bitcoin slides downward $80,000It reduces trading volumes of crypto-exposed retail stocks.
- NIO Inc (NIO): -4.36% ($4.50) Pressure on EV manufacturers continues due to changing global subsidy environments.
Commodities
“Precious Metals Shock” entered its third day with a high sales rate. Kevin Warsh Nomination for Fed Chair significantly strengthens case US Dollar Index (97.57)It makes non-return assets like gold less attractive.
- Gold (GC=F): -1.49% ($4,674.50) Gold almost crashed $1000 From the all-time high of $5,626 set last Thursday.
- Silver (SI=F): -0.75% ($77.94) After Friday’s record-breaking 30% crash, silver is struggling to find a base as margin requirements on major exchanges increase.
- Copper (HG=F): -1.80% ($5.82) Despite positive PMI data, the “red metal” fell to a four-week low as investors reassessed industrial demand.
