US equity indexes rose after midday Monday, as investors gravitated into communication services and technology ahead of big-tech earnings.
Nasdaq advanced 0.7% to 23,653.1, with the S&P 500 up 0.6% to 6,956.8 and the Dow Jones Industrial Average higher by 0.5% to 49,332.2. All sectors except energy, consumer discretionary, and consumer staples gained intraday.
With over 12% of S&P 500 firms having reported Q4 results, earnings have risen by 14%, ahead of the FactSet consensus as of Dec. 31 for 8.1% growth, a Friday note from brokerage D.A. Davidson said. While information technology topped sector gains so far, consumer discretionary emerged as the biggest laggard at the start of the Q4 reporting season.
Communication services and technology have not been in the top three sectors over the past three and six months, which could imply investors positioning ahead of the big-tech earnings. Meta Platforms (META), Tesla (TSLA), Microsoft (MSFT), and Apple (AAPL) from the so-called Magnificent-7 category of stocks will report quarterly results this week, when the Federal Reserve is also expected to announce no change in its monetary policy for January.
In company news, Nvidia (NVDA) invested $2 billion in CoreWeave's (CRWV) Class A common stock at $87.20 per share, the companies said. Shares of CoreWeave climbed nearly 8%.
Intel (INTC) filed a registration statement on Friday with the US Securities and Exchange Commission for the potential sale of securities from time to time. Shares of the chipmaker slid 5%, the second-steepest decline on the S&P 500 and the Nasdaq.
Cisco Systems (CSCO) said Monday that it released the Cisco 360 Partner Program to help clients implement artificial intelligence technology more quickly. Shares of the company jumped 3.3%, the Dow's top gainer.
Baker Hughes (BKR) reported a surprise adjusted earnings and revenue growth in Q4. Shares jumped 4.5%, among the biggest gainers on the Nasdaq.
In economic news, the Dallas Fed's monthly manufacturing index improved to a reading of minus 1.2 in January from a revised minus 11.3 in December, compared with expectations for minus 8.6. Other manufacturing readings already released have also signaled a return to expansion.
Meanwhile, precious metals told a different story. Gold futures jumped 2.4% to $5,097.5 per troy ounce, after hitting a new all-time high of $5,107.90 earlier in the session. Silver futures surged 14% to $116.03 per troy ounce, after scaling a new peak of $116.15 intraday.
"Gold surged past the $5,100 mark, extending its historic run as central banks and investors sought safe haven assets amid geopolitical risks and Trump-driven volatility," a note from brokerage D.A. Davidson said Monday.
The ICE US Dollar Index, which reflects the greenback's performance against a basket of the world's major currencies, slumped 0.6% to 97.02, the lowest since around mid-September.
Most US Treasury yields fell, with the 10-year Treasury yield down three basis points to 4.21%, signaling a somewhat risk-off mood in fixed-income markets. The two-year yield slid 2.1 basis points to 3.58%.
West Texas Intermediate crude oil futures fell 0.3% to $60.85 a barrel.
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