Dollar Hits Four-Month Low as Gold Tops $5,000: Markets Wrap
(Bloomberg) — The dollar extended its selloff on Monday as speculation swirled that the US could coordinate intervention with Japanese authorities to support the yen. Stocks wavered, while gold topped $5,000 an ounce.
The greenback fell for a third day to reach its lowest level since September. The yen rallied 1% to the highest in two months. Futures on the S&P 500 were little changed. Precious metals extended their breakneck rally as gold hit a fresh record and silver surged more than 6%.
Signs that Tokyo and Washington coordinated on rate checks fueled the volatility in foreign-exchange markets, as traders viewed the steps as preparation for direct intervention. Joint US-Japan action would give authorities greater power to deter speculators after the yen fell to an 18-month low earlier this month.
“The bigger signal is policy coordination,” said Daniel Baeza, senior vice president at Frontclear. “If markets interpret coordination as a willingness to tolerate easier global dollar conditions, especially alongside a dovish Fed reaction function, that could reinforce short-term dollar downside.”
Treasuries rose across the curve as traders added to bets for 2026 interest-rate cuts after BlackRock Inc. executive Rick Rieder’s candidacy to helm the Federal Reserve gained momentum. With an announcement on the next Fed chair possible as soon as this week, rate expectations will be in focus as current Chair Jerome Powell delivers the latest decision on Wednesday.
The latest highs in precious metals fueled premarket gains in miners such as Newmont Corp. Coreweave Inc. surged 10% after securing an additional $2 billion investment from Nvidia Corp. to build out AI computing capacity.
American Airlines Group Inc. and United Airlines Holdings Inc. were slightly lower as carriers pushed to get their schedules back on track following an intense winter storm.
Earnings will be in the spotlight as the busiest week of the season gets underway, with four of the Magnificent Seven tech giants due to report. The group has driven market gains for much of the past three years, but that leadership faltered in late 2025 as Wall Street grew skeptical of whether massive AI spending will deliver returns.
“The main focus from investors will likely be comments around AI-capex,” said Stephan Kemper, chief investment strategist at BNP Paribas Wealth Management. “Any sign of a slowdown could be seen as hyperscalers losing trust in the possibility to monetize those investments in a timely manner.”
Some of Wall Street’s top strategists are beginning to see early evidence that US profit growth is spreading beyond tech megacaps.
An analysis by JPMorgan Chase & Co. shows that forward guidance has topped expectations at roughly half of the S&P 500 companies that have provided an outlook for 2026. Goldman Sachs Group Inc. also expects earnings to support an expansion.
“Since most of the companies that have reported are outside the tech sector, this trend suggests a broadening of growth across other industries this year,” JPMorgan strategist Dubravko Lakos-Bujas wrote in a note.
Traders were keeping a close eye on Washington after Democrat leaders threatened to shut down the government in response to the growing uproar over Trump’s aggressive immigration crackdown.
“A potential shutdown would clearly represent some downside risks for the market mood as we just recover form the last one,” said BNP’s Kemper.
Corporate Highlights:
Nvidia Corp. invested an additional $2 billion in CoreWeave Inc. to help speed up an effort to add more than 5 gigawatts of AI computing capacity by 2030. SoftBank Group Corp. has halted talks about an acquisition of US data center operator Switch Inc., a setback to founder Masayoshi Son’s ambition to roll out Stargate AI infrastructure, according to people familiar with the matter. CVC Capital Partners Plc has agreed to buy US credit manager Marathon, the latest example of consolidation among alternative asset managers. Merck & Co. is no longer in talks to acquire biotech firm Revolution Medicines Inc. after the two companies couldn’t agree on a price, the Wall Street Journal reported, citing people familiar with the matter. A Zijin Mining Group Co. unit agreed to buy Allied Gold Corp., which operates gold mines in Africa, for C$5.5 billion ($4 billion), the Canadian company said in a statement. Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 8:24 a.m. New York time Nasdaq 100 futures fell 0.1% Futures on the Dow Jones Industrial Average were little changed The Stoxx Europe 600 was little changed The MSCI World Index rose 0.2% Currencies
The Bloomberg Dollar Spot Index fell 0.3% The euro rose 0.1% to $1.1844 The British pound was little changed at $1.3651 The Japanese yen rose 1% to 154.18 per dollar Cryptocurrencies
Bitcoin rose 1.5% to $87,824.85 Ether rose 3.2% to $2,904.76 Bonds
The yield on 10-year Treasuries was little changed at 4.22% Germany’s 10-year yield declined three basis points to 2.88% Britain’s 10-year yield was little changed at 4.50% Commodities
West Texas Intermediate crude fell 0.2% to $60.97 a barrel Spot gold rose 1.6% to $5,069.63 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Anand Krishnamoorthy, James Hirai and Sagarika Jaisinghani.
©2026 Bloomberg L.P.
