On the opening day of the month, Wall Street staged a notable rebound following a widespread sell-off the previous Friday. Small-cap stocks, represented by the Russell 2000 index, outpaced larger-cap indices with a 1.4% gain by midday in New York despite having dropped 1.6% at the prior session's close. The technology-heavy Nasdaq 100 advanced by 1.1%, and the broad S&P 500 rose by 0.7%, demonstrating a broad-based market uplift.
Investor focus lingered on the implications of President Donald Trump's decision to nominate Kevin Warsh as the next chair of the Federal Reserve. Market participants interpreted this appointment as signaling a potentially hawkish approach on the central bank’s balance sheet management. This renewed hawkish sentiment appeared to weigh heavily on safe-haven assets, notably gold and silver.
In the precious metals sector, the weakening trend intensified as gold prices fell more than 4% from Friday's closing values, settling at approximately $4,670 per ounce. Silver experienced an even steeper decline, plummeting 8% to $77.88 per ounce. To contextualize these losses, gold dropped by 9% on Friday alone, while silver suffered a dramatic 26% collapse during the same period.
Economic data released enhanced the market’s positive momentum. The Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers’ Index (PMI) surged unexpectedly to a three-year high, signaling strengthened factory-sector activity and contributing to the buoyant equity market sentiment.
In contrast to traditional economic figures, the Bureau of Labor Statistics announced that the release of January's jobs report would be postponed due to the ongoing partial government shutdown in Washington, depriving markets of the typical employment data for the month.
Corporate earnings announcements produced mixed results. Walt Disney Co. (NYSE:DIS) shares declined roughly 6% despite the company reporting better-than-expected quarterly earnings. Similarly, IDEXX Laboratories Inc. (NASDAQ:IDXX) shares dropped about 6% following a conservative earnings forecast that fell short of investor expectations.
Commodities tied to the energy sector faced sharp declines. Natural gas prices plunged 25%, influenced by forecasts predicting milder weather conditions that could reduce demand. Crude oil prices fell over 5%, pressured by the news of U.S. administration plans to meet Iranian officials in Istanbul for nuclear deal discussions, which could potentially impact supply dynamics.
In the digital assets market, Bitcoin (CRYPTO: BTC) recovered 2.6% to reach approximately $78,900 after touching a low near $74,500 overnight, its weakest level since April 9, 2025, illustrating continued volatility in cryptocurrency valuations.
Looking ahead, Palantir Technologies Inc. (NASDAQ:PLTR) is scheduled to report its quarterly results after the market close, positioning the stock for notable post-market activity.
Market breadth was positive across major indices and exchange-traded funds (ETFs) as of midday: the Nasdaq 100 advanced 1.1% to 25,825.05; the S&P 500 increased 0.7% to 6,990.37; the Dow Jones Industrial Average climbed 1.0% to 49,391.97; and the Russell 2000 led gains with a 1.4% rise to 2,650.68.
ETF performance mirrored these index moves: the Vanguard S&P 500 ETF (VOO) rose 0.63%, SPDR Dow Jones Industrial Average ETF (DIA) increased 0.93%, and the Invesco QQQ Trust (QQQ) gained 0.92%. The iShares Russell 2000 ETF (IWM) climbed 1.32%, confirming the strength in small-cap stocks. Among sector-focused ETFs, the Technology Select Sector SPDR Fund (XLK) outperformed with a 1.4% increase, whereas the Energy Select Sector SPDR Fund (XLE) lagged, declining 1.3%.
Within the Russell 1000 index, several top performers were prominent. SanDisk Corporation (NASDAQ:SNDK) surged the most, advancing 15.85%, followed by Lumentum Holdings Inc. (NASDAQ:LITE) with an 11.25% increase. Western Digital Corporation (NASDAQ:WDC) and UWM Holdings Corporation (NYSE:UWMC) climbed 8.47% and 8.45%, respectively, while Saia, Inc. (NASDAQ:SAIA) gained 7.81%.
Conversely, the Russell 1000's largest decliners included Robinhood Markets, Inc. (NASDAQ:HOOD), which fell 8.49%. Other notable losses were reported by ESAB Corporation (NYSE:ESAB) at -7.91%, Antero Resources Corporation (NYSE:AR) at -6.59%, IDEXX Laboratories, Inc. at -6.28%, and Figure Technology Solutions, Inc. (NYSE:FIGR) at -6.19%.
Stock scores and momentum indicators accessed from Benzinga Rankings offered detailed insights into the relative strength and value of various tickers, although these analytics are beyond the scope of this market summary.
In summary, the market’s early month rally was led by small caps outperforming larger peers, buoyed by an unexpectedly strong manufacturing sector report. However, precious metals confronted continued declines amid shifting Federal Reserve expectations. Key corporate earnings and energy commodities added to the mixed picture, while digital assets displayed volatility. Investors face ongoing uncertainties amid political developments and macroeconomic factors shaping market sentiment.