Stocks Rebound on Strong Factory Data as Metals Losses Ease – US Market Wrap
US equities advanced after upbeat manufacturing data strengthened confidence in corporate fundamentals, while losses in gold and silver moderated following a sharp selloff. Bonds declined, the dollar posted its biggest two-day gain since April, and Bitcoin rallied.
The S&P 500 snapped a three-day losing streak, led by economically sensitive sectors after data showed manufacturing activity expanding at its fastest pace since 2022. The Russell 2000 index of small-cap stocks rose 1%. Gold, though still down about 5% on the session, recovered from steeper earlier losses. Oil slid nearly 5% as geopolitical risk premiums eased after President Donald Trump said the US is in talks with Iran.
The improvement in factory activity follows nearly a year of contraction, offering tentative signs that the manufacturing sector may be stabilizing after several years of weakness. The data added to optimism that industrial momentum could become more durable if demand continues to recover.
In response to the report, traders slightly scaled back expectations for Federal Reserve rate cuts. The central bank paused its easing cycle last week, and money markets now point to July as the most likely timing for the next reduction.
Separately, the Bureau of Labor Statistics said it will not release the January jobs report as scheduled on Friday due to the partial government shutdown.
By the close, the S&P 500 was up 0.5%, while an index of technology megacaps was little changed. Walt Disney shares fell after issuing a cautious outlook. Oracle announced plans to sell investment-grade bonds to help fund infrastructure supporting artificial-intelligence projects.
