Markets Shrug Off Overnight Jitters, Led by Dow and Russell Rebound
NEW YORK – U.S. equity markets staged a notable recovery at Monday's open, shaking off overnight weakness fueled by political and corporate headlines. The rally was bolstered by a robust reading from the manufacturing sector, suggesting underlying economic resilience.
The Institute for Supply Management's (ISM) Manufacturing Purchasing Managers' Index (PMI) for January 2026 came in at 52.6, its highest level since August 2022 and firmly in expansion territory. The report highlighted strength in new orders and prices, though employment remained a concern, dipping slightly into contraction.
"This PMI print is the catalyst the market needed to look past last night's noise," said David Chen, a portfolio manager at Horizon Capital Advisors. "It signals that the industrial backbone of the economy is holding up, which justifies the morning's risk-on move."
As of the opening bell, the Dow Jones Industrial Average was up 0.43%, with the small-cap-focused Russell 2000 gaining 0.28%. The Nasdaq Composite and S&P 500 also advanced, rising 0.19% and 0.17%, respectively. The positive start marked a sharp reversal from Sunday night's futures trading, where Nasdaq and S&P 500 futures had fallen more than 1.5% and 1.1%.
Investors had been digesting a mix of news, including former President Donald Trump's latest nomination for the Federal Reserve chair, Oracle's plans to raise over $50 billion for data center expansion, and clarification from Nvidia CEO Jensen Huang regarding the company's financial ties to OpenAI.
Precious metals also saw a reprieve. Gold and silver futures turned positive in morning trading after facing pressure recently. In contrast, cryptocurrencies extended their slump, with Bitcoin and Ethereum down significantly over the past week, weighing on related equities.
Market Voices:
"This is a classic 'bad news is already priced in' bounce. The PMI is decent, but let's not ignore the employment component or the macro headwinds still out there. I'm skeptical this rally has legs." – Marcus Thorne, Chief Strategist, Veritas Macro Research.
"Finally, some green on the screen! The data shows the economy isn't rolling over. Small caps leading is a great sign for broader participation. This could be the start of a healthier phase for the bull market." – Anya Sharma, Senior Equity Analyst, Clearwater Funds.
"Are you kidding me? We're cheering because we didn't crash? This market is on life support, manipulated by every headline and Fed whisper. The overnight panic over a Fed pick tells you everything about how fragile this house of cards really is." – Rick Carson, Independent Trader and financial commentator.
"The divergence between crypto and traditional assets is striking today. It underscores a flight to relative stability. Traders are rotating into areas with clearer fundamental drivers, like industrials, and out of speculative zones facing regulatory and liquidity fears." – Dr. Evelyn Moss, Professor of Finance, Kellogg School of Management.
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