Closing Recap

U.S. stocks finished broadly higher, with the S.P. 500 and Nasdaq notching new record highs, as another AI-related mega-deal fueled the technology rally; the dollar weakened, gold surged to a new all-time high, and Treasury yields were little changed as investors awaited key Fed speeches. In the currency markets, the U.S. dollar was hammered, with the DXY falling to a multi-week low as the EUR/USD rallied towards 1.1800, driven by expectations of Fed easing and cautious optimism ahead of European PMI data.

Key Takeaways 

• Records Smashed, Again: U.S. stock indices continued their relentless climb, with the S&P 500 and Nasdaq closing at new all-time highs as overwhelmingly bullish sentiment prevails. 
• AI Euphoria Drives Rally: A landmark partnership announcement between OpenAI and Nvidia, including a potential $100 billion investment, sent another jolt of excitement through the tech and power sectors. 
• Dollar Falters, Gold Soars: The U.S. Dollar pulled back, allowing major currencies to rebound. Gold was the main beneficiary, surging nearly 2% to a fresh record closing high. 
• Focus Shifts to Powell and PMIs: After a quiet data day, the market’s attention now turns squarely to a slate of crucial flash PMI reports and a highly anticipated speech from Fed Chair Jerome Powell. 
• Major Currencies Rebound: The weaker Greenback fueled a rally in EUR/USD back towards the key 1.1800 level, while GBP/USD also found renewed support. USD/JPY remained in a tight range. 
• Oil Prices Remain Muted: Crude oil prices ended a lackluster session slightly lower, showing little reaction to the broader risk-on mood in equity markets. 
• Crypto Plummets on Liquidations: In a sharp divergence from equities, cryptocurrencies fell sharply after a wave of long position liquidations sparked a sell-off, with Bitcoin dropping 2.5% and Ethereum plunging 7%.

Market Overview

The U.S. stock market’s powerful rally continued unabated today, with the S.P. 500 and Nasdaq Composite once again pushing into uncharted territory to close at new all-time highs. The positive momentum from last week, which saw the Fed deliver its first rate cut of the year, carried into the new week. The primary catalyst for today’s surge, particularly in the technology sector, was a landmark announcement of a strategic partnership between OpenAI and Nvidia. The deal, which includes a potential $100 billion investment from Nvidia to build out OpenAI’s AI infrastructure, reignited the AI euphoria that has been a central theme of the 2025 market rally. 

Index	Up/Down	% Change	Last
DJ Industrials	66.27	0.0014	46381
S&P 500	29.39	0.0044	6693
Nasdaq	157.5	0.007	22788
Russell 2000	14.56	0.0059	2463

The news sent Nvidia shares and a host of related stocks in the power, nuclear, and data center sectors soaring. The rally was broad-based, with the Russell 2000 also posting solid gains and nine of the eleven S.P. sectors finishing higher. The positive sentiment was further supported by record corporate stock buyback announcements, which are providing a strong underlying bid for equities. 

With a very light economic calendar today, investors were able to focus on the positive corporate news and await a heavy slate of commentary from central bank officials this week, headlined by a speech from Fed Chair Jerome Powell. While some cautionary signals persist, such as stretched valuations and a weakening labor market, the market’s upward momentum remains incredibly strong, with no pullbacks of significance in six straight months.

Economic Calendar

There were no high-tier economic data releases on Monday. A series of speeches from various Fed officials crossed the wires but had no discernible impact on markets, which were squarely focused on the rally in technology stocks. The calendar is packed with market-moving events today (Flash PMIs for France, Germany, Eurozone, and UK.), highlighted by key economic data and a speech from the head of the Federal Reserve. 

• 07:15-08:30 GMT – Flash PMIs for France, Germany, Eurozone, and UK. 
• 13:45 GMT – US Flash PMIs (Manufacturing exp: 52.0, Services exp: 53.9). 
• 16:35 GMT – Fed Chair Powell Speaks.

Commodities, Treasuries and Currencies

The U.S. Dollar Index (DXY) lost more than 0.3% on Monday, giving back some of its post-Fed gains. This weakness allowed EUR/USD to rally 0.47% back toward the 1.1800 level, while GBP/USD also rebounded as traders bought the dip after last week’s sharp declines. The USD/JPY pair remained locked in a tight range, caught between broad dollar weakness and a risk-on mood that typically weighs on the safe-haven Yen. A notable $1 billion options expiry is located at the 1.1800 strike level. With the pair currently floating just below it, this level could act as a magnet for price action, especially around the data releases and Powell’s speech.

Asset	Up/Down	Unit / % Change	Last
WTI Crude	-0.04	USD/bbl	62.64
Brent	-0.11	USD/bbl	66.57
Gold	69.3	USD/oz	3775.1
EUR/USD	0.0052	USD	1.1796
USD/JPY	-0.23	JPY	147.71
10-Year Note	0.002	%	0.0414

Gold was the star performer, surging $69 (1.83%) to settle at another record high of $3,775.10 per ounce. The rally was fueled by a significant drop in the U.S. dollar and continued strong demand for safe havens amid ongoing policy uncertainty. In contrast, crude oil prices were remarkably quiet, ending the day slightly lower. The U.S. Treasury market was stable, with the benchmark 10-year yield holding steady at 4.14% as the market appears to have found its equilibrium following last week’s Fed meeting. 

The digital asset space saw a dramatic sell-off. Bitcoin fell 2.5% to $112,500 and Ethereum plunged 7% after more than $1.5 billion in bullish positions were liquidated, causing a cascade of selling that hit smaller tokens particularly hard.

Looking Ahead 

The market will be laser-focused on today’s flash PMI data for a real-time read on the health of the U.S. economy. The main event, however, will be the speech from Federal Reserve Chairman Jerome Powell. His comments on inflation, the labor market, and the future path of interest rates will be the most critical driver of market sentiment. With a heavy slate of other Fed and ECB speakers also on the docket, central bank commentary will be paramount. Earnings season is winding down, but any remaining reports will be watched for corporate guidance.