NEW YORK (AP) — U.S. stocks rose on Monday following sharp swings that shook financial markets overnight, including tumbles for Asian stocks. Gold and silver prices sank further following their latest wild moves.
On Wall Street, the S&P 500 added 0.5% and snapped a three-day losing streak. The Dow Jones Industrial Average rose 515 points, or 1.1%, and the Nasdaq composite gained 0.6%.
Stocks of companies that make computer storage helped lead the market, adding to gains from last week following several profit reports that topped analysts’ expectations. Airlines and cruise-ship operators were also strong, benefiting from a sharp easing of oil prices.
The center of action in financial markets was again precious metals, where momentum has suddenly halted after gold’s price roughly doubled in just 12 months.
Gold briefly dropped below $4,500 per ounce in the overnight hours, down more than $1,000 from its high point reached just last week. It then climbed back above $4,800 before settling at $4,652.60, down 1.9% from Friday.
Silver’s price has been on an even wilder ride recently, and it swung from a 9% loss overnight to a modest gain and back to a loss of 1.9%.
Gold and silver prices had surged as investors looked for safer things to own amid a wide range of worries, including a Federal Reserve that may be set to become less independent, a U.S. stock market that critics say is expensive, threats of tariffs and heavy debt loads for governments worldwide.
Their prices cratered on Friday, including a 31.4% plunge for silver. Some on Wall Street saw it as a result of President Donald Trump’s nomination of Kevin Warsh as the next chair of the Fed. Warsh’s reputation as a former Fed governor may have raised expectations that he may keep interest rates high to fight inflation, which would reduce the need to hide out in gold and silver for protection.
But many on Wall Street are also skeptical of that initial reading and say the expectation from Trump is likely that Warsh will cut interest rates, something the president has been…
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