Stock indexes soared on Monday, with the S&P 500 up +1.56%, Dow Jones up +1.29%, and Nasdaq up +2.18%. Futures also saw gains, with E-mini S&P up +1.47% and E-mini Nasdaq up +2.12%. Recovery followed Friday’s plunge, boosted by eased US-China trade tensions and tech sector rallies, including Broadcom’s 9% jump.

Gold prices surged over 3% to an all-time high on Monday, driven by central bank buying, Fed rate cut expectations, and safe-haven demand amid US government shutdown concerns. Fed official Anna Paulson’s dovish comments supported stocks, with hopes for two more rate cuts this year. Trade tensions eased as the US signaled openness to a deal with China.

Global economic growth optimism rose as China’s Sep exports grew by +8.3% and imports by +6.4% year-on-year. The US government shutdown delays key economic reports, including jobless claims and trade data. Markets await trade news, Fed Chair Powell’s keynote address, and major bank earnings this week. Earnings expectations are bullish, but profits are forecasted to rise by +7.2%.

European bond yields dropped, with German bund and UK gilt yields falling. The German Sep wholesale price index rose +1.2% year-on-year. Swaps show a 2% chance of an ECB rate cut. US stock movers included chipmakers like Broadcom (+9%) and ARM Holdings (+11%) rallying on OpenAI collaboration. Rare earth and mining stocks surged on global tensions.

US casino stocks like Las Vegas Sands and Wynn Resorts fell over -6% as Macau gaming revenue dipped -5% year-on-year. Defensive food and beverage stocks declined, while tech giants and gold-related stocks rose. Earnings reports for companies like Johnson & Johnson and JPMorgan Chase are expected this week. PayPal and insurance stocks saw downgrades.

Read more at Nasdaq: Stocks Settle Sharply Higher on Trade Hopes and AI Optimism