Tech stocks continue to boost the US stock market, with the S&P approaching its all-time high, the dollar falling below the 97 level, gold returning to $5000, and silver futures rising nearly 9% intraday.

U.S. stocks continued the rally from last Friday, especially in the technology sector. Investors seem to have viewed last week’s sharp decline caused by AI disruption concerns as an “overreaction” and a buying opportunity, pushing the market higher. Before the release of key economic reports including employment and inflation data, market sentiment was relatively optimistic, and a softening dollar provided additional support for risk assets and gold.

The S&P 500 index approached its all-time high again, with the software and chip sectors, which had been “bloodied” earlier, both surging today, with Oracle soaring nearly 10%. The Nasdaq 100 closed up 0.8%, regaining the critical 100-day moving average.

(Intraday performance of major U.S. stock indices)

The Big Seven tech giants performed strongly, significantly outperforming the broader market. Analysts believe that after last week’s rotation where “value” outperformed “growth,” funds are now flowing back into the tech sector.

(Today’s Big Seven tech giants significantly outperforming remaining S&P components)

Market bullish sentiment is not limited to tech stocks. “Most shorted stocks” have risen over 11% from last Friday’s lows, erasing all of last week’s declines. Analysts suggest hedge funds are closing out previously increased short positions. According to Goldman Sachs data cited by Wallstreet.cn, last week’s nominal short selling volume for a single stock hit its highest level since records began in 2016.

The rebound in tech stocks alleviates concerns that AI could disrupt business models. However, analysts warn that recent volatility may persist, and investors should monitor whether tech stocks’ fundamentals can continue to support valuations.

Morgan Stanley strategists believe U.S. tech stocks still have room for further gains, supported by the AI boom and strong sales outlooks. Led by Michael Wilson, the team notes that revenue growth expectations for large tech firms have reached “decades-high levels,” while valuations have declined after recent market volatility. The decline in software stocks offers some “attractive entry points.”

CFRA’s Sam Stovall states that the sector’s adjustment is a necessary digestion of previous gains. The industry is expected to grow EPS by 32% in 2026 and by another 20% in 2027, compared to the S&P 500’s projected increases of 13% and 16%, respectively. He said:

If these EPS growth expectations continue, investors will be glad they held their positions.

Chris Senyek of Wolfe Research expects continued volatility in the coming days. He points out that sectors like consumer staples, which performed well this year, are now severely overbought, and non-software tech stocks remain “very crowded” among institutional and retail investors. Senyek states:

Further systemic selling could continue in the short term.

Despite continued rebounds in software stocks led by Oracle, prices are still well below last week’s opening highs. Analysts believe the market is waiting for a week packed with macroeconomic data, including the delayed January non-farm payroll report and the latest CPI data. This has led traders to maintain risk exposure ahead of the data releases.

(SaaS stocks continue to rebound from lows)

Wallstreet.cn reports that Alphabet plans to raise $20 billion through dollar bonds to support its AI ambitions and will issue rare century-long GBP bonds. U.S. Treasury yields did not spike; the 10-year yield flattened, and the 2-year yield fell 1.2 basis points.

(Yields on major U.S. Treasury maturities)

Markets focus on the pressure on UK Prime Minister Sunak to resign, with the 10-year UK bond yield briefly rising over 8 basis points.

The dollar index fell for a second consecutive day to a one-week intraday low. After Sanae Takashi’s victory in Japan, officials warned to closely monitor exchange rates, with the yen reversing six days of decline, reaching a two-week high intraday, up over 1%. The offshore yuan nearly broke 6.92 intraday for the first time in three years.

A weak dollar supported commodities, with metals broadly rising, led by silver surging over 7%. Spot gold continued last week’s rebound trend, rising more than 2.3% intraday and breaking through the $5,000 mark.

(Gold, silver, copper, platinum prices rise)

Silver outperformed gold for two consecutive trading days, recovering some of its strength relative to gold after the gold-silver ratio touched a two-month high of 70 last week.

(Gold-silver ratio declines for two days)

Due to expected higher temperatures across most of the U.S., natural gas prices declined for a second day, analysts believe this may reduce demand for heating and power plant fuel.

The U.S. advised ships to avoid Iranian waters when navigating the Strait of Hormuz, causing oil prices to rise slightly. Previously, due to nuclear negotiations, risk premiums had fallen in recent days.

On Monday, the three major U.S. stock indices closed higher, with the Dow roughly unchanged but remaining above 50,000 points. The tech sector rose over 1.5%, leading the U.S. sector ETFs. The software ETF gained 3.2%, and the Philadelphia Semiconductor Index also rose 1.4%.

Major U.S. stock indices:

• S&P 500 up 32.52 points, +0.47%, at 6964.82.

• Dow Jones Industrial up 20.20 points, +0.04%, at 50135.87.

• Nasdaq up 207.457 points, +0.90%, at 23238.67. The Nasdaq 100 rose 192.369 points, +0.77%, at 25268.141.

• Russell 2000 up 0.70%, at 2689.05.

• VIX (fear index) down 18.42%, at 17.76.

Sector ETFs:

• Technology sector ETF up 1.54%, global tech ETF up 1.33%, semiconductor ETF up 1.24%, internet sector ETF up 1.04%.

(Sector ETFs on Feb 9)

Big Seven Tech Giants:

• Magnificent 7 index up 1.02%.

• Microsoft up 3.13%, Nvidia up 2.50%, Meta up 2.41%, Tesla up 1.51%, Google A up 0.45%, Amazon down 0.76%, Apple down 1.17%.

Chip stocks:

• Philadelphia Semiconductor Index up 1.42%, at 8162.58.

• TSMC ADR up 1.83%, AMD up 3.63%.

Chinese concept stocks:

• Nasdaq Golden Dragon China Index up 0.12%, at 7817.64.

• Among popular Chinese stocks, Tencent up 5.80%, Atour, Ares Solar, and Daqo New Energy up to 5.70%, Baidu, NetEase, Alibaba up at least 0.3%.

Other individual stocks:

• Circle up 5.40%.

• After CapitalWatch, accused of money laundering, apologized, AppLovin rose 13%.

• Telehealth company Hims & Hers withdrew plans for low-cost generic weight-loss drugs amid regulatory pressure, plunging 16%, intraday down over 28%, hitting a new intraday low since October 2024.

• Novo Nordisk up 3.63%. Its weight-loss drug ads were flagged as “false or misleading” by the FDA.

On Monday, Europe’s STOXX 600 index closed above 620 for the first time, with components InPost up over 13%, STMicroelectronics up about 10%. Italian banking sector rose over 3%, hitting a new all-time closing high, and Danish stocks gained 2%.

Pan-European indices:

• STOXX 600 up 0.70%, at 621.41, a new record close.

• Euro Stoxx 50 up 1.01%, at 6059.01, surpassing the previous high of 6041.14 on Jan 15, and approaching the February 3 top of 6073.34.

Country indices:

• DAX 30 up 1.19%, at 25014.87.

• CAC 40 up 0.60%, at 8323.28.

• FTSE 100 up 0.16%, at 10386.23.

(European and US major indices on Feb 9)

Sectors and stocks:

• In the eurozone blue chips, UniCredit up 6.36%, Adyen up 4.58%, Siemens Energy up 3.88%, RHM (Rheinmetall) up 2.77%, BBVA up 2.18%, ranking fifth.

• All components of STOXX 600: InPost up 13.53%, STMicroelectronics (Milan) up 9.85%, Plus500 up 9.26%, ranking third.

• Sectors: STOXX 600 Basic Resources up 2.94%, Industrial Goods & Services (including defense stocks) up 1.70%, Banks up 1.31%, Oil & Gas up 1.04%.

Yields on 2/10-year U.S. Treasuries fell about 1.2 basis points. UK government borrowing costs spiked but then retreated, with Prime Minister Sunak facing resignation pressure, causing investor jitters.

U.S. Treasuries:

• NY close, 10-year yield down 1.19 basis points.

• 2-year yield down 1.24 basis points, at 3.4851%. 30-year yield down 0.32 basis points, at 4.8479%.

(Yields on major U.S. Treasuries)

European bonds:

• At market close, Germany 10-year yield down 0.2 basis points, at 2.840%, trading between 2.862% and 2.833% intraday, European stocks initially rose then continued to fall.

• UK 10-year yield up 1.3 basis points, at 4.527%, hitting a high of 4.598% at 22:13 Beijing time, then quickly retraced gains.

• France 10-year yield down 0.4 basis points, 2-year French bond yield down 1.0 basis points.

The dollar index fell over 0.8%. Non-dollar currencies generally rose, with the Swiss franc and Australian dollar up over 1%, and the yen continuing to strengthen the day after Japan’s parliamentary elections.

Dollar:

• NY close, ICE dollar index down 0.85%, at 96.808, trading between 97.737 and 96.793, overall downward trend.

• Bloomberg dollar index down 0.68%, at 1182.54, trading between 1191.89 and 1182.34.

(Bloomberg dollar index decline)

Non-dollar currencies:

• NY close, EUR/USD up 0.84%, at 1.1916. USD/CHF down 1.26%, at 0.7662.

• GBP/USD up 0.60%, at 1.3693. GBP/EUR down 0.25%.

• Commodity currencies: AUD/USD up 1.22%, NZD/USD up 0.68%, USD/CAD down 0.85%.

Yen:

• NY close, USD/JPY down 0.91%, at 155.79 yen, trading between 157.76 and 155.52 yen.

• EUR/JPY down 0.13%, GBP/JPY down 0.29%.

Offshore RMB:

• NY close, USD/CNH at 6.9152, down 149 points from last Friday’s NY close, trading between 6.9332 and 6.9147.

Cryptocurrencies:

• NY close, spot Bitcoin steady at $70,397. Spot Ethereum up 0.9%.

(Bitcoin price)

WTI March crude oil futures rose 1.27%.

Crude Oil:

• WTI March futures up $0.81, +1.27%, at $64.36/barrel.

(WTI crude)

• Brent April futures up $0.99, +1.45%, at $69.04/barrel.

Natural Gas:

• NYMEX March natural gas futures at $3.1380 per million British thermal units.

Metals broadly rose, with silver surging over 7%, leading gains. Spot gold continued last week’s rebound, rising over 2.3% intraday and breaking through $5,000.

Gold:

• NY close, spot gold up 2.01%, at $5,064.10 per ounce.

(Spot gold price)

• COMEX gold futures up 2.04%, at $5,081.50 per ounce.

Silver:

• NY close, spot silver up 6.98%, at $83.2699 per ounce.

• COMEX silver futures up 7.67%, at $82.795 per ounce.

Other metals:

• NY close, COMEX copper futures up 1.31%, at $5.9590 per pound.

• Spot platinum up 1.34%, spot palladium up 1.93%.

• LME copper futures up $182, at $13,176 per ton. LME tin futures up $2,380, at $49,098 per ton. LME nickel futures up $259, at $17,349 per ton.

Risk warning and disclaimer

Market risks exist; investments should be cautious. This article does not constitute personal investment advice and does not consider individual user’s specific investment goals, financial situations, or needs. Users should consider whether any opinions, views, or conclusions herein are suitable for their particular circumstances. Invest accordingly at your own risk.