Markets Shake Off Political Turmoil as Dow Extends Gains, Nasdaq Composite Breaks Higher
US stocks soared, with the NASDAQ establishing new records and the Dow Jones up 0.25% despite the political news.
Quick overview
- US equities rose despite political turbulence, with the Dow Jones gaining 0.25% and NASDAQ reaching new records.
- The Japanese yen initially weakened due to political news but recovered, while the euro briefly wobbled after France's prime minister was ousted.
- Investor confidence remained steady across US indices, with tech leading the advance and mixed performance in other sectors.
- Market winners included Robinhood and Alibaba, driven by strong trading activity and improving sentiment towards Chinese tech.
Live DOW Chart
US stocks soared, with the NASDAQ establishing new records and the Dow Jones up 0.25% despite the political news.
Markets started the week with no shortage of political noise. The Japanese yen initially weakened after the weekend announcement of the prime minister’s resignation, triggering a 120-pip move lower. However, the pressure soon faded, and the yen clawed back losses, leaving USD/JPY to finish the session flat.
Meanwhile, Europe wasn’t immune to political turbulence either. France’s prime minister was ousted late in the day, causing a brief wobble in the euro before the currency found support and reversed higher. These swift reversals highlight how quickly investors are discounting political risks in favor of larger economic narratives.
US Indices Push to New Highs
Despite uncertainty abroad, Wall Street closed firmly in positive territory. All four major US indices ended higher, underlining steady investor confidence. Tech once again led the advance, but participation across sectors—though measured—pointed to a cautiously constructive sentiment heading into a week packed with economic releases.
Dow Jones Chart Daily – MAs Continue to Support the Price
Gained 90.31 points (+0.45%) to close at 21,798.70, marking a fresh record. It also logged a new intraday high of 21,885.62, surpassing the prior peak from August 13. Dow Jones Rose 114.09 points (+0.25%), extending Friday’s momentum and keeping within reach of record levels.
Closing Levels for Major US Indices
- Dow Jones Industrial Average: Gained 114.09 points (+0.25%), finishing at 45,514.95, supported by strength in financials and industrials.
- NASDAQ Composite: Advanced 90.31 points (+0.45%) to close at 21,798.70, driven by renewed momentum in large-cap tech.
- S&P 500: Added 13.65 points (+0.21%), ending at 6,495.15, with mixed performance across sectors but continued resilience in energy and healthcare.
- Russell 2000: Rose 3.84 points (+0.16%) to settle at 2,394.89, reflecting modest gains in small-cap stocks despite lingering investor caution.
Market Winners
- Robinhood Markets (+15.80%) – Surged on strong retail trading activity, as investors flocked to risk-on assets. Higher trading volumes boosted confidence in platforms like Robinhood.
- Alibaba ADR (+4.16%) – Advanced on improving sentiment toward Chinese tech, supported by hopes of policy easing in Beijing. A broader relief rally lifted China-linked ADRs.
- Uber Technologies (+3.70%) – Benefited from robust consumer demand and renewed optimism over ride-sharing profitability, aided by more stable fuel costs.
- Live Nation Entertainment (+3.57%) – Gained on resilient demand for live events and expectations that consumer spending on entertainment will hold up despite economic uncertainty.
- Broadcom (+3.26%) – Extended its post-earnings momentum, with chipmakers broadly climbing on strong AI adoption and continued demand from data centers.
Looking at the different S&P sectors, information technology led the way with a gain of 0.67% while utilities was the biggest drag with a decline of -1.07%.
Takeaway: While political headlines rattled currency markets briefly, their effects were fleeting. Investors remain focused on growth prospects and central bank signals, with tech strength continuing to be a dominant theme. The resilience in US equities suggests that risk appetite, though cautious, is intact as markets look ahead to key data that could shape Fed expectations.
Nasdaq Live Chart
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