After gold (GLD) and more especially silver (SLV) dropped last week, both metals fell again on Monday. This did not prevent the Dow Jones (DJI) from adding 515 points to close at 49,047. Bitcoin (BTC-USD) gained slightly but still traded below $80,000.
Investors bid shares of Apple (AAPL) up by over 4%. The mega-cap firm reported strong iPhone device sales. Unlike Microsoft (MSFT), which is pouring billions into OpenAI, Apple will likely pay for a third party to supply AI solutions. Investors bid shares of IBM (IBM), Western Digital (WDC), Cisco Systems (CSCO), and Alphabet (GOOG) as well. Alphabet will report results on February 4 after markets close.
In the currency market, the U.S. dollar (UUP) continued a powerful rebound. It is now up by 0.78% in the last week. President Trump’s nomination of Kevin Warsh is an appropriate choice. Markets did not expect this pick, since Warsh previously expressed opposition to quantitative easing. If the U.S. avoids QE during his tenure, it would strengthen the U.S. currency.
In the bond market, the 20+ Year Treasury Bond ETF (TLT) fell sharply. It lost 0.67% on Monday and is down by 2.04% in the last week. Debt holders do not want to hold bonds that have long-term maturities. They are not certain that interest rates will remain elevated. Moreover, if inflation accelerates, the Fed might even consider raising interest rates.
Related Stories
