Wall Street kicked off the week with a full-throated rebound. The Dow jumped more than 500 points, the S&P 500 rose over 1%, and the Nasdaq led with a 1.37% gain, marking one of the broadest up-days of the month. Risk appetite returned as traders embraced earnings optimism and tentative signs that U.S.–China trade tensions might finally be cooling.

Gold soared over 4%, blasting through $4,390 before settling down slightly as hedgers refused to leave the safe-haven trade behind. Oil ended pretty flat after some dips during the session. Tech and small-caps led, while cyclicals such as industrials and materials firmed on improving sentiment abroad.

Globally, markets mirrored the U.S. tone: Japan’s Nikkei surged more than 1%, Europe rallied across the board, and currency markets stayed calm. Even with the U.S. government still partially shut down, investors focused on what is moving, like earnings, liquidity, and geopolitics, not what’s frozen in Washington.

The takeaway: traders are leaning risk-on but not all-in. This rally carries a hedge (evident in gold’s vertical move and steady Treasury buying) hinting that conviction remains fragile despite the green screens.

The Original Magnificent Seven Produced 16,894% Average Returns Over 20 Years.

But the Man Who Called Nvidia at $1.10 Says "AI's Next Magnificent Seven Could Do It Even Faster."

See His Breakdown of the Seven Stocks You Should Own Here.

Forbes’ Boaz Sobrado dives into one of the strangest bull stories of 2025: the Degenerate Economy Index, a tongue-in-cheek basket of meme-ish assets that’s now up 130% year-to-date. 

Behind the humor lies something serious: a clear reflection of how speculation itself has become a growth sector. From “gamified” trading apps to viral collectibles and synthetic meme tokens, Sobrado shows that what used to be dismissed as noise is now a measurable, tradable pattern. He connects this mania to liquidity excess, ultra-fast retail flows, and the blurred line between investing and entertainment. 

His contrarian point: instead of mocking retail “degens,” maybe the pros should be studying them. Their risk appetite and speed often front-run sentiment shifts the same way crypto did in 2020. The takeaway for traders? Ignore the absurdity at your peril… the degenerate economy is no longer a sideshow; it’s a sentiment gauge hiding in plain sight.

In this sharp Odd Lots episode, hosts Joe Weisenthal and Tracy Alloway dig into one of the biggest policy curveballs of the year: the Trump administration’s move to take direct equity stakes in U.S. corporations. 

What started as targeted “strategic support” for key sectors like defense, semiconductors, and infrastructure has quietly evolved into something bigger: a partial state-ownership model that blurs the line between capitalism and industrial policy. Their guest, a former Treasury official, explains how this isn’t just bailouts in disguise. It’s about political leverage and control… giving Washington a seat at the corporate table as the U.S. competes with China’s state-backed giants. 

But the implications are massive: market distortion, moral hazard, and questions about who really runs corporate America when the state becomes a shareholder. The conversation is equal parts economics and geopolitics, with a healthy dose of skepticism. Traders and investors will find it especially relevant, because if government equity stakes become a normalized policy tool, it could rewrite the rules of risk, reward, and even corporate governance across the S&P.

While everyone's chasing the same AI plays, George Gilder is focused on something completely different.

He says a 4-nanometer device that's 80 MILLION times more powerful than the chip he gave Reagan is now being made in America for the first time.

And he's identified 3 companies that control this technology.

Get the details before this BOMBSHELL announcement changes everything.

Tomorrow’s focus shifts squarely to earnings and macro tone-setting. With the data calendar still sparse due to the shutdown, traders will zero in on fresh corporate results from the industrial, semiconductor, and banking sectors. Any miss on forward guidance could quickly unwind today’s exuberance.

Watch also for new remarks from Fed officials (several speeches are scheduled mid-morning) which could reset rate-cut expectations after today’s easy-money optimism. Overseas, Asian markets will open on a tailwind, but European PMI readings could challenge that if growth data disappoints.

Bottom line: Monday’s rally was a breather, not a breakout. The market is daring the week to confirm that optimism is justified… and if earnings or policy hints fall flat, Tuesday could bring a sharp reality check. Still, as of right now, the ground feels moderately more solid than last week.