Nasdaq Rises Over 1% to Snap Two-Day Losing Streak as Dow Hits New Record High
Taylor Wilson
U.S. stocks rallied across the board Monday — the Nasdaq rose 1.12% to lead, while the Dow closed above 53,000 for the first time; Nvidia and Broadcom AI catalysts reignited tech buying, but Morgan Stanley warned chip-sector price action mirrors silver's pre-crash trajectory.
Where did the post-holiday buying come from?
Thursday's payroll shock hammered equities, but three days off let panic dissipate. Monday saw a clear rotation back from bonds into stocks.
The S&P 500 closed up 0.74% at 7,538, the Nasdaq Composite gained 1.12% to lead, and the Dow finished above 53,000 for the first time ever.
Tech led; consumer staples lagged. Cyclicals decisively outperformed defensives. This means → risk appetite flipped from last week's flight-to-safety back into attack mode.
AI trade reignites — why are chip stocks splitting apart?
Nvidia confirmed its server roadmap is unaffected. Broadcom announced its Apple chip partnership extends to 2031. Together these reinforced confidence in sustained AI infrastructure spending.
Nvidia partner Hon Hai Precision posted quarterly revenue up roughly 40% year-on-year, beating estimates, and said AI demand is still expanding. SK Hynix launched its U.S. IPO roadshow targeting about $28 billion.
Morgan Stanley chief strategist Mike Wilson flagged a troubling comparison: the semiconductor sector's price path closely mirrors silver's trajectory before its crash. In plain terms = the steeper the rally, the more it looks like the moment before a bubble breaks.
Is AI actually a bubble?
BlackRock's Jean Boivin team offered a framework: the key question is not current valuations — it is whether future earnings can stay at extraordinary levels.
This means → if AI genuinely lifts productivity and growth, today's prices are justified; if earnings revert to normal, the bubble pops.
UBS CIO Mark Haefele added: this week, watch whether hyperscaler capex plans hold steady — as long as the money keeps flowing, the market won't panic.
Saudi Arabia's biggest price cut in 26 years — what hit oil?
Saudi Arabia slashed its August official selling prices by the largest margin in at least 26 years — the first time it has sold crude at a discount since the 2020 price war.
OPEC+ simultaneously agreed to raise output targets by another 188,000 barrels per day from August. WTI held flat around $68–69; Brent slid to $71.75, the lowest since late February.
Analyst Ahmed Mehdi called it inventory normalization, not a new price war — a consequence of Strait of Hormuz shipping gradually resuming. In plain terms = oil that was stuck is arriving, and prices must drop to a level Asian buyers will accept.
How did Fed hawkishness cap gold?
Spot gold fell roughly 0.4% to $4,162 an ounce after failing to hold a test of the $4,200 level overnight.
This reflects both major financial drivers — the dollar and rates — turning against gold simultaneously: Fed Governor Waller reiterated that the risk balance has tilted clearly toward inflation, and the ISM services report showed multiple industries planning price increases.
The 10-year Treasury yield dipped 2 basis points to 4.47%; bond-market volatility stayed muted. Rate-hike expectations for 2026 held at about 30 basis points, still well above where markets were priced before new Fed Chair Warsh took office.
Why did Bitcoin plunge, then surge?
Bitcoin dropped toward $61,000 intraday after Strategy sold roughly $216 million in holdings — its second major liquidation this year.
Then Trump declared from the Oval Office, "I have become a firm supporter of cryptocurrency." Bitcoin snapped higher, closing up about 1.4% at $63,571.
This means → the crypto market is acutely dependent on policy signals right now — one presidential statement overrode a $200-million sell order. The dollar index finished flat; the yen weakened further, with USD/JPY rising to 162.03, near a 40-year high.
Content is for reference only, not financial advice.