US stocks rose on Monday as the dollar weakened and gold prices surged, leading the way in a significant week featuring a Federal Reserve rate decision and major technology earnings reports.
The Dow Jones Industrial Average increased by 0.4%, while the S&P 500 and Nasdaq Composite both climbed 0.6%. This uptick followed consecutive weekly losses for the three indexes.
Optimism on Wall Street appeared cautiously as President Trump announced plans to send “border czar” Tom Homan to Minnesota in response to the shooting of a protestor. Investors expressed concerns that political tensions surrounding the incident could hamper efforts to sidestep a federal shutdown, increasing interest in safe-haven assets.
The decline of the dollar was seen as a catalyst for the ongoing rally in gold, which recently surpassed $5,000 an ounce for the first time and continued to trend upward on Monday.
Earlier, the dollar hit a four-month low amid speculation regarding potential US-Japan cooperation to stabilize the yen. The currency was under additional pressure following Trump’s aggressive diplomatic messaging concerning trade, particularly regarding Greenland and Canada.
While currency fluctuations have often taken a back seat to stock performance, analysts suggest this may be changing as trade threats re-emerge. The upcoming slew of earnings reports, particularly from key tech giants, could also shift investor sentiment.
As the Federal Reserve approaches its policy decision on interest rates this Wednesday, market observers anticipate that the central bank will pause on rate changes. There’s speculation regarding the potential appointment of a new Fed chair by Trump, with Rick Rieder of BlackRock being a favored candidate.
