US Stocks Rise as Dollar Weakens and Precious Metals Rally

Market Overview - The S&P 500 is rallying, nearing all-time highs, with a 0.6% increase, while small caps have outperformed, with the Russell 2000 down about 0.4% [1] - Gold prices have risen above $5,000 an ounce, increasing by about 0.9%, as investors seek refuge in hard assets amid geopolitical uncertainties [1] - The U.S. dollar has decreased by more than 1.5% recently, marking its worst three-day loss since mid-April, as speculation grows for a weaker dollar [1] Earnings Season Insights - This week is significant for earnings, with major companies like Microsoft, Tesla, and Apple reporting, which could impact market narratives [1][2] - The tech sector is expected to have the most significant impacts, with companies like Apple and Microsoft not reaching record highs since late 2022 [1][2] - Concerns are raised about capital expenditures, particularly following Intel's recent earnings report, which highlighted spending worries [1][2] Company-Specific Developments - Cisco has been upgraded by Evercore ISI, citing high single-digit sales growth potential and a refreshed product cycle, which could lead to sustained revenue growth [4] - NVIDIA is investing an additional $2 billion in CoreWeave to enhance AI computing capacity, raising concerns about vendor financing dynamics [4][5] - USA Rare Earth has secured a $1.6 billion investment from the government to boost domestic production of rare earth elements, with expectations for commercial scale by 2030 [6][7] Currency and Economic Policy - The recent coordinated intervention by the U.S. and Japan to support the Japanese yen has been noted as a significant market event, with implications for U.S. dollar policy [5] - Analysts suggest that a weaker dollar could benefit U.S. equity markets, although there are concerns about potential risks if equities decline [6]