Wall Street and markets around the world kicked off the week on a high note, with investors piling back into technology stocks, cheering Japan’s election results, and watching the U.S. dollar lose some ground against other major currencies.
Stock markets pretty much everywhere were in the green after Japan’s Nikkei index had a banner day. Investors are feeling good about Prime Minister Sanae Takaichi’s big election win, betting that her government will pump money into the economy and push through some helpful reforms. That positive vibe spread across Asia, with South Korean and Chinese stock markets also posting solid gains that got traders excited.
Tech stocks steal the show again
The real stars of the day were technology companies. Major U.S. software and chip makers bounced back after getting knocked around recently, with investors seemingly convinced that the artificial intelligence boom isn’t running out of steam anytime soon. There’s also been a ton of money flowing into big tech company bond sales, which shows that people are still willing to bet serious cash on the sector’s future.
The good mood didn’t stop in the U.S. Markets in Europe and emerging economies caught the wave too, with several hitting new record highs. It’s a sign that investors are still willing to take risks and chase returns, even though there’s plenty of geopolitical drama bubbling away in the background.
Dollar loses its grip
Over in the currency markets, the U.S. dollar had a rough day, sliding against pretty much every other major currency. The buzz is that Chinese officials have been quietly telling their banks to ease up on buying U.S. government bonds, which got traders repositioning their bets in a hurry. The Japanese yen got stronger, along with the Swiss franc and several Asian currencies, as money started flowing in different directions than it has been lately.
Bond markets were surprisingly calm through all this. U.S. Treasury yields barely budged, while Japanese government bonds recovered after some early morning jitters tied to speculation about what the new government might do with spending.
Commodities get a lift too
It wasn’t just stocks having a good day. Gold and silver prices climbed as investors kept buying them as insurance against uncertainty. Oil prices ticked up a bit as people became slightly more optimistic about global demand picking up. Even industrial metals like copper gained some ground, which usually means traders think manufacturing is going to stay busy.
What’s coming next
Now everyone’s watching the economic reports due out soon. U.S. retail sales numbers, inflation data from the big economies, and whatever central bankers decide to say about interest rates are all going to matter a lot for where markets head from here. The analysts watching all this say markets are going to stay pretty touchy about government spending plans, currency swings, and whether the global economy keeps growing as we move through early 2026.
Even with Monday’s strong showing, the economists are reminding everyone not to get too comfortable. Several major economies are still wrestling with budget problems, and geopolitical tensions aren’t going anywhere, which means we’re probably going to see markets jump around from time to time. It’s the kind of environment where one day’s rally can turn into the next day’s selloff without much warning.
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