MARKET SNAPSHOT

Major U.S. stock indexes pushed higher, led by the Dow Industrials. U.S. government debt sold off and Treasury yields rose, along with the dollar, as manufacturing PMI surprised on the upside. Gold and silver prices continued to decline. Oil prices posted heavy losses as tensions between Iran and the U.S. continued to ebb.

MARKET WRAPS

EQUITIES

The Dow Jones Industrial Average rose more than 500 points on Monday, driven by gains in Apple and Caterpillar, as a strong manufacturing reading underscored that the economy is starting the year with momentum.

The Dow Jones Industrial Average added 1.1%. The S&P 500, which gained 0.5%, finished less than 0.1% from its high point. The Nasdaq composite added 0.6%.

Some tech companies rebounded after a selloff late last week. Sandisk, Western Digital, Micron and Intel all finished the day up at least 5% and were among the S&P's top gainers.

Apple, which reported earnings last week, climbed 4%-buoying all three major indexes.

Earlier Monday, stocks in Asia were down and metals tumbled as markets digested the implications of a Warsh-led U.S. Federal Reserve. A firmer U.S. dollar and the unwinding of the debasement trade hit metals prices and tech-linked stocks that had been benefiting from a softer dollar.

Chinese shares ended lower, following disappointing domestic economic data. China's official PMI fell well below forecasts, suggesting that domestic challenges have carried over into 2026, said ING.

China's benchmark Shanghai Composite fell 2.5%. The Shenzhen Composite Index and the ChiNext Price Index both dipped 2.5%. Hong Kong's Hang Seng Index dropped 2.2%.

The Japanese Nikkei 225 index dropped 1.3%, pushed lower by energy stocks and financials.

Stocks in Australia fell, as the S&P/ASX 200 Benchmark Index fell 1.0%.

New Zealand's S&P/NZX 50 Index slipped 0.1%.

COMMODITIES

Crude futures slid as U.S.-Iran tensions eased, but markets still faced headline risks, Sparta Commodities' Neil Crosby said.

President Trump said over the weekend he believes Iranian leaders are negotiating seriously, but the U.S. military buildup continued.

Crosby said risk remains "as we wait to see whether negotiation or confrontation will dominate the narrative." He said Washington's "exact intentions and timings remain as ever, difficult to read."

WTI futures sank 4.9%, the largest decline since June, to $61.92 a barrel. Front month ICE Brent crude fell 4.4% to settle at $66.30 a barrel.

Precious metal futures finished lower, but they may not have much further to fall until finding a bottom, said Peter Cardillo of Spartan Capital Securities.

"We see light at the end of the tunnel for both gold and silver," said Cardillo.

Monday's declines-with front-month gold falling 1.9% to $4,622.50 an ounce and silver futures also down 1.9% to $76.778 an ounce-comes after both metals posted historic slides Friday.

TODAY'S TOP HEADLINES

U.S. Will Cut Tariffs on India to 18% in Trade Deal

The U.S. has agreed to reduce tariffs to 18% on India, which in turn will stop buying Russian oil, President Trump said Monday, in a deal aimed at easing trade tensions between the two countries.

Trump last year levied a 25% tariff on India for its purchases of Russian oil, on top of a 25% "reciprocal" tariff that Trump imposed on the nation.

In a post on Truth Social, Trump said he and Indian Prime Minister Narendra Modi "agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%."

U.S. Factory Activity Posts Fastest Gains Since 2022

U.S. factory activity unexpectedly expanded in January at the fastest pace in more than three years, as production and demand recovered strongly, a survey of manufacturing firms said.

The Institute for Supply Management said Monday that its purchasing managers' index of manufacturing activity jumped to 52.6 last month, the highest since August 2022, compared with 47.9 in December. A consensus of economists polled by The Wall Street Journal expected a lower reading of 48.4.

A reading above 50 points to expansion in activity in the sector for the first time in 12 months, though one above 47.5, over a period of time, generally indicates an expansion of the overall economy.

Trump Administration to Create $12 Billion Rare Earth Stockpile to Counter China

WASHINGTON-The Trump administration is preparing to develop a roughly $12 billion stockpile of critical minerals aimed at helping U.S. manufacturers navigate future supply shortages and overcome future reliance on China for rare earths and metals.

A White House official said the expected stockpile-called Project Vault-will be the fruition of roughly $1.67 billion in private capital along with a $10 billion loan from the U.S. Export-Import Bank to assemble the minerals from automakers, manufacturers and tech companies.

President Trump's move comes after the Chinese government has used its dominance over the supply chain for critical-minerals processing to squeeze key U.S. industries. Last year, Beijing imposed licensing requirements for U.S. companies to purchase rare-earth magnets made with critical minerals, allowing it to limit the supply of the critical components for the defense and automotive sectors. China currently controls about 90% of the processing capability for rare-earth minerals, according to the International Energy Agency.

U.S., Iran Poised to Meet for Talks

Senior U.S. and Iranian officials are poised to meet in Turkey this week, amid efforts by regional powers to craft a diplomatic alternative to a clash that risks sparking broader turmoil.

U.S. special envoy Steve Witkoff and President Trump's son-in-law Jared Kushner were expected to join talks with Iranian Foreign Minister Abbas Araghchi in Istanbul on Friday, people familiar with the matter said.

The foreign ministers of Saudi Arabia, Qatar, the United Arab Emirates, Egypt, Pakistan and Oman have also been invited to join, the people said.

Palantir Achieves Another Revenue Record With $1.41 Billion Quarter

Palantir Technologies reported another quarter of record revenue on Monday, reflecting strong demand for its artificial-intelligence technology from the U.S. government and commercial businesses, even as its role in aiding the Trump administration's deportation agenda has come under tougher scrutiny.

The data-analytics company based in Denver said it had $1.41 billion in sales for the final three months of last year, a year-over-year gain of 70%.

The company posted net income of $609 million. Profit and revenue each came in ahead of analyst expectations.

Oracle Plans to Raise Up to $50 Billion for AI Infrastructure Buildout

Oracle said it plans to raise between $45 billion and $50 billion this year to fund its artificial-intelligence infrastructure buildout, seeking fresh capital to satisfy growing demand from clients.

The cloud-services giant said it expects to raise the money through a combination of debt and equity to build capacity for its cloud infrastructure business so it can meet demand it has already contracted from clients like Nvidia, Meta Platforms, TikTok, ChatGPT-maker OpenAI, Elon Musk's xAI and chip maker Advanced Micro Devices.

The company said it hoped to raise roughly half of the money through equity-linked and common equity issuances. On the debt side, the group said it expects to execute a single, one-time issuance of investment-grade senior unsecured bonds early this year to cover the remaining half of the fundraise.

Disney Shares Fall Despite Streaming Growth, as CEO Decision Nears

Disney's streaming profit surged in the December quarter while its overall bottom line softened, as investor attention turns to an expected announcement of the company's next chief executive as soon as this week.

Shares in the entertainment giant fell 7% on Monday as executives warned that growth in the current quarter would be muted, partly because of higher costs for sports rights as well as theme-park and cruise-line expansions.

Operating income for the Disney+ and Hulu streaming services rose 72% from the same quarter a year earlier to $450 million, well above Wall Street analysts' estimates and the company's guidance.

Devon Energy to Buy Coterra for $21.5 Billion to Create Shale Giant

Devon Energy agreed to buy Coterra Energy in a roughly $21.5 billion all-stock deal that would birth one of the largest U.S. oil-and-gas producers as consolidation continues to reshape the industry.

The combined company, which would keep the Devon Energy name, would become one of the dominant players in the Permian Basin of West Texas and New Mexico, where both companies currently operate. It would have a market value of more than $47 billion, based on the two companies' Friday closing prices.

Coterra shareholders would receive 0.7 shares of Devon for each share of Coterra they hold, the companies said Monday. Devon shareholders would own about 54% of the combined company, while Coterra shareholders would own about 46%.

Expected Major Events for Tuesday

00:30/AUS: Dec Building Approvals

03:30/AUS: Reserve Bank of Australia monetary policy decision

06:00/JPN: Dec Revised Machine Tool Orders

08:30/HK: Dec Retail Sales

21:00/SKA: Jan International Reserves

21:45/NZ: 4Q Household Labour Force Survey

21:45/NZ: 4Q Labour Cost Index (Salary & Wage Rates)

21:45/NZ: 4Q Quarterly Employment Survey

22:00/AUS: Jan Australia Services PMI

22:00/AUS: Dec Australian PMI

22:00/AUS: Jan Australian PMI

22:00/AUS: Dec Australian PCI

22:00/AUS: Jan Australian PCI

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

February 02, 2026 17:00 ET (22:00 GMT)

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