US stocks surged on Monday as investors prepared for a week packed with high-profile earnings and delayed inflation data.
The Dow Jones Industrial Average rose more than 1.1%, adding over 500 points, while the S&P 500 gained nearly 1.1%. The Nasdaq Composite outperformed with a 1.4% advance, boosted by Apple’s shares hitting a record high on strong iPhone 17 sales.
Markets are largely ignoring lingering concerns over the government shutdown, geopolitical tensions, and trade frictions to focus on earnings season. Major reports from Tesla, Intel, Netflix, and Coca-Cola are set to dominate this week, while investors also await Zions Bancorp’s third-quarter results. Last week, Zions disclosed bad loans linked to fraud, raising concerns about US credit quality.
US-China trade relations provided a modest lift. Treasury Secretary Scott Bessent said ties had “deescalated” and confirmed talks would resume in Malaysia. President Trump appeared conciliatory on Sunday, highlighting rare earths, fentanyl, and soybeans as top trade priorities, which raised hopes that his previously threatened 100% tariffs on Chinese imports in November might be avoided.
The ongoing US government shutdown continues to block key inflation and employment data, critical to Federal Reserve decision-making. The Bureau of Labor Statistics is now scheduled to release the September Consumer Price Index on Friday, a data point that could significantly influence the Fed’s next moves.
Monday also saw market nerves from a major Amazon AWS outage that disrupted services including Robinhood, United Airlines, and Reddit. AWS has reported operations are slowly returning to normal.
Internationally, Japan installed its first female prime minister, LDP leader Sanae Takaichi, though markets remain cautious amid her rocky path as the fourth prime minister in five years. Currency flows reflected this uncertainty, with USD demand present alongside risk-on JPY supply and CHF demand.
Commodities also saw mixed activity. Gold retraced slightly to $4,243 following recent highs of $4,381 but remains underpinned by China buying, geopolitical risks, and lack of alternatives. Oil softened again amid global economic concerns and potential OPEC+ supply increases, with WTI testing $56 after capping near $57.30–$57.50.
