US Stock Market Today: S&P 500 and NASDAQ Rise After ISM Manufacturing Rebound Lifts Investor Confidence

US stocks rose on Monday as a surprise rebound in factory activity helped investors look past fresh uncertainty around US monetary policy after President Donald Trump nominated Kevin Warsh to lead the Federal Reserve.

The S&P 500 rose on the ISM manufacturing data theme that dominated early trading, even as bond yields climbed and gold stayed under pressure after a sharp sell-off late last week.

Market moves reflected that shift in tone. The S&P 500 rose 0.5% by late morning in New York. The NASDAQ 100 gained 0.8%, and the Dow Jones Industrial Average added 0.7%. In Europe, the Stoxx Europe 600 climbed 1%.

ISM Manufacturing PMI Jump Lifts Risk Sentiment

The key catalyst came from the Institute for Supply Management (ISM). Its Manufacturing Purchasing Managers’ Index, or PMI, rose to 52.6 in January from 47.9 in December, expanding at the fastest pace since 2022.

New orders strengthened, which investors often treat as an early signal for output and earnings momentum. However, the report also showed higher input-price pressure, which markets watch for inflation risk.

Bond markets reacted quickly. The 10-year US Treasury yield rose to about 4.27%, while the 2-year yield climbed to about 3.57%, suggesting traders still expect restrictive policy to linger.

Kevin Warsh's Fed Chair Nomination Keeps Rate Outlook in Focus

Investors also weighed the political and policy implications after Trump picked Warsh to succeed Jerome Powell, with Powell’s chair term ending in May.

Markets treated the nomination as a potential constraint on near-term rate-cut expectations. Some investors see Warsh as more cautious on inflation, which can influence how quickly the Federal Open Market Committee (FOMC) moves.

Moreover, investors priced in lingering caution after the nomination weighed on risk assets late last week. Some strategists said markets felt uneasy about changes to the Federal Reserve’s policy approach.

Currency trading reflected that caution. The Bloomberg Dollar Spot Index rose 0.3%. The euro slipped to about $1.1802, and the yen weakened to about 155.54 per dollar.

Gold Selloff Eases, Oil Slides on Iran Talk Headlines

Commodities remained volatile. Spot gold fell about 4.7% to approximately $4,662 an ounce, extending a sharp drop after a rapid run-up.

Energy prices also fell hard. West Texas Intermediate (WTI) slid about 4.7% to nearly $62 a barrel as investors reacted to Trump’s comments that Washington was talking with Iran, which markets read as reduced geopolitical risk premiums.

Crypto assets bounced after weekend pressure. Bitcoin rose about 2.9% to near $78,676, and Ether gained about 3.7% to $2,374.

Corporate Highlights

• Oracle said it plans to raise $45 billion to $50 billion in 2026 to expand cloud capacity.

• Elon Musk held advanced talks to combine SpaceX with xAI, according to people familiar with the matter.

• Walt Disney Company shares fell after it issued guidance that markets treated as mixed.

• Boeing still needs progress to regain certain certification authorities, the head of the FAA said.

• Tyson Foods reported profit support from higher beef pricing and firm chicken demand.

• Devon Energy agreed to buy Coterra Energy in a stock deal valued at approximately $21.4 billion, the report said.

• Vanguard announced another round of fee cuts across mutual funds and exchange-traded funds.

• Eldorado Gold agreed to buy Foran Mining for about C$3.8 billion, the report said.

• Air India grounded a Boeing 787-8 after a pilot flagged a possible defect related to a fuel control switch, it said.

• Porsche considered shelving an electric sports car line to cut costs tied to its EV spending, according to people familiar with the matter.

Investors now turn to follow-on data and earnings updates to confirm that the factory rebound can persist while yields stay elevated, because both factors can shape the next leg for equities, the dollar, and rate expectations.

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