US stocks moved higher on Monday as technology shares extended their rebound, pushing the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average toward a third consecutive day of gains in a holiday-shortened trading week.
The Nasdaq led the advance, rising about 0.7%, as investors regained confidence in the artificial intelligence trade. The S&P 500 and Dow both added roughly 0.5%, with markets trading close to record highs heading into the final stretch of 2025.
Tech Stocks Lead as AI Optimism Returns
Technology shares continued to recover after a volatile period marked by concerns over stretched AI valuations. Investor sentiment shifted late last week following upbeat developments tied to Nvidia and Oracle, helping restore confidence in the sector’s earnings outlook.
Markets are now assessing whether tech momentum can carry through the week, with traders watching for signs of a seasonal Santa Claus rally. Softer inflation data and cooling labour market indicators have reinforced expectations that interest-rate cuts could still come into focus in 2026.
Gold Hits Record High as Geopolitical Risks Drive Safe-Haven Demand
Gold surged to a fresh record on Monday, cementing its role as the market’s primary safe-haven as geopolitical tensions and supply risks intensified. Investor demand for gold strengthened even as US equities pushed higher, highlighting persistent caution beneath the surface of the broader risk rally.
The rally has been fuelled by heightened uncertainty linked to Venezuela, alongside ongoing concerns around global trade routes and energy security. Gold’s move higher reflects a defensive allocation shift, with investors seeking protection against geopolitical shocks and potential inflationary spillovers.
Silver followed gold’s lead, posting strong gains of its own, though price action remained firmly driven by gold’s momentum rather than industrial demand dynamics.
Oil Prices Rise After Venezuela Developments
Crude oil prices pushed higher after the United States intensified enforcement actions near Venezuela’s coast. West Texas Intermediate gained more than 2% to trade near $57 a barrel, while Brent Crude rose toward $61.
Energy markets reacted after US authorities intercepted another Venezuelan oil tanker, adding to concerns about supply constraints in the region.
What Markets Are Watching Next
Investors are now turning attention to a compressed run of US economic data releases delayed by the recent government shutdown. Key updates are expected on Tuesday, including an early look at third-quarter GDP and revised readings for the PCE inflation index.
US markets will close early on Wednesday for Christmas Eve and remain shut on Thursday for Christmas Day, making liquidity and volatility key factors to monitor as the year-end approaches.
Tech-led gains are keeping US equities buoyant heading into the holidays, while record highs in gold signal lingering geopolitical risk beneath the surface. With thinner trading conditions ahead, sentiment shifts could be amplified in the final sessions of 2025.