U.S. Markets Firm on AI Strength as Investors Await Key Economic Data

Index Update:  U.S. equities moved higher on Monday, led by a strong rebound in AI and large-cap technology stocks, with the Dow edging 0.1% higher to a record, the S&P 500 rising about 0.5%, and the Nasdaq advancing up to 0.8%. Chipmakers and AI infrastructure names such as Nvidia, Broadcom, AMD, Palantir and Oracle drove gains, reinforcing confidence in sustained data-services spending after last week’s tech-led selloff. In contrast, software stocks lagged amid concerns that rapid advances in generative AI could pressure pricing power and growth, while investor focus shifted to upcoming U.S. jobs and inflation data for clues on economic momentum and policy easing.

Market Movers:  On Monday, the top gainers were MDJM LTD (+93.28%), followed by Valaris Limited (+34.31%). On the contrary, Kyndryl Holdings, Inc. (-54.92%), and Polaryx Therapeutics, Inc. (-33.45%) declined the most the same day.

Commodities Update:  Oil prices extended gains for a third straight session on Tuesday, with WTI rising to $64.6 per barrel and Brent to $69.3 per barrel, supported by ongoing U.S.–Iran tensions despite progress in talks. Sentiment was further lifted by U.S. warnings to American-flagged vessels in the Strait of Hormuz and uncertainty around Iran’s uranium enrichment stance, while markets also watched the risk of tighter supply if India curtails Russian crude imports following its latest U.S. trade agreement. Precious metals weakened on Tuesday as investors awaited key U.S. jobs and inflation data that could influence the Federal Reserve’s policy outlook. Gold slipped below $5,050 per ounce but held near recent highs, supported by expectations of rate cuts, strong central-bank buying led by China, and ongoing geopolitical risks. Silver dropped about 2% to below $82 per ounce as profit-taking set in after recent volatility, while other precious metals also edged lower amid cautious sentiment.

Macro Updates:  The dollar index stayed below 97 on Tuesday after a sharp two-day decline, pressured by concerns that foreign demand for U.S. assets may weaken following reports of China advising limits on Treasury holdings. Investors are now focused on delayed U.S. jobs and inflation data for clues on the Fed’s outlook, with rates expected to stay unchanged in March and two cuts priced in for later this year, while the yen outperformed amid intervention concerns in Japan.

Bonds Commentary:  U.S. Treasury yields fell for a second straight session on Tuesday, with the 10-year yield slipping below 4.2% as investors awaited delayed U.S. jobs, inflation and retail sales data for clarity on the Fed’s policy path. Expectations for rates to remain unchanged in March, with two cuts priced in later this year, supported the move lower, while comments on slowing job growth offset concerns over reports of China urging limits on U.S. Treasury exposure.

Futures Update:  U.S. stock futures were little changed on Tuesday, signaling a cautious start to the session as investors weighed ongoing corporate earnings and awaited delayed U.S. employment and inflation data. The Dow Jones futures edged up 0.1%, the S&P 500 futures rose 0.1%, while Nasdaq 100 futures were flat.

Stocks generally advanced throughout Monday’s trading session, extending the strong upward momentum from last Friday. The Dow inched closer to a new record closing high, while the technology-heavy Nasdaq experienced a more significant rise to the upside. The S&P 500 surged by 32.50 points, or 0.47%, finishing at 6,964.81. From a technical perspective, the S&P 500 regained a key moving average and could continue climbing in today’s session. The 14-day Relative Strength Index (RSI) moved above its midpoint, further indicating a positive bias. Key support levels are identified around 6,910, which could trigger a rebound, with resistance seen near 7,050.