AI Momentum Sparks Wall Street Rebound as Policy Shifts and Safe-Haven Trades Emerge
Wall Street opened the week on stronger footing, led by Nvidia and other Big Tech names as enthusiasm around artificial intelligence powered a broad recovery from last week’s declines. Investors rotated back into growth and semiconductors while monitoring fresh signals of a cooling U.S. labor market and shifting expectations for Federal Reserve policy.
Early data from major banks and private trackers point to a slowdown in hiring, reinforcing the case for rate cuts and driving a bid in defensive assets. Gold jumped about 3% to a two-week high on the softer data and policy hopes, with some traders eyeing upside scenarios above the $4,100 mark as safe-haven demand builds. In trade news, Washington and Bern are reportedly negotiating a reduction of U.S. tariffs on Swiss imports—potentially from 39% down to around 15% within weeks—a move that could relieve pressure on Swiss exporters and recalibrate transatlantic trade flows.
Elsewhere, market structure and corporate moves drew attention. A proposal for 50-year mortgages highlighted affordability trade-offs, trimming monthly payments on a $300,000 loan to roughly $1,294 compared with about $1,530 for a 30-year term, but at the cost of significantly higher lifetime interest and heavier debt burdens. In energy, Lukoil is exiting Iraqi assets amid sanctions, opening room for Western operators despite low per-barrel remuneration. In digital assets, MicroStrategy continued its aggressive bitcoin strategy, purchasing 487 BTC for approximately $49.9 million via at-the-market equity programs and lifting total holdings to about 641,692 BTC, valued near $68 billion—another signal of persistent institutional crypto demand.
Key Points – Nvidia and Big Tech led a rebound in U.S. equities, fueled by renewed AI-driven risk appetite. – Private and bank data suggest a cooling U.S. labor market, bolstering rate-cut expectations. – U.S.–Switzerland tariff talks reportedly target a cut from 39% to around 15%, potentially within weeks. – Gold rose roughly 3% to a two-week high on weak data and safe-haven flows, with some traders eyeing $4,100+ scenarios. – A proposed 50-year mortgage could lower monthly payments versus a 30-year term but increases total interest paid. – MicroStrategy bought 487 BTC (~$49.9M), raising its holdings to about 641,692 BTC valued near $68B.
