US indices bounce from weak start as gold hits fresh record highs

​​​Markets shake off early weakness to close higher

​Wall Street staged a modest recovery on Monday, with the S&P 500 rising 0.2% to an intraday record and the Nasdaq 100 climbing 0.5% after a weak open. The turnaround demonstrated investor resilience in the face of political noise and regulatory uncertainty.

​The session began with indices under pressure following news of a Justice Department investigation into Federal Reserve (Fed) chairman Jerome Powell. Initial selling gave way to buying as traders concluded the threat was more theatre than substance, choosing to focus on corporate fundamentals instead.

​Powell investigation fails to rattle markets

​News that the Justice Department would investigate Fed chairman Powell caused barely a ripple in markets. Investors viewed the risk as long-flagged rather than new, dismissing the threat to Fed independence as unlikely to materialise into concrete action.

​Powell has repeatedly clashed with President Trump over monetary policy, making some form of political pressure almost inevitable. The investigation appears more performative than substantive at this stage, though it underscores the administration's willingness to challenge institutional norms.

​For now, traders seem content to treat the Fed story as noise rather than signal. The swift recovery from early losses suggests confidence that Powell will see out his term without material interference, allowing monetary policy to remain data-dependent rather than politically driven.

​Gold surges to fresh all-time highs

Gold pushed through $2900 per ounce to hit fresh record highs, extending its relentless rally as investors sought safe-haven assets amid political uncertainty and currency volatility. The precious metal has now gained more than 10% since the start of the year.

​Multiple factors are driving gold's ascent. Geopolitical tensions, concerns about United States (US) institutional independence and ongoing currency weakness in major economies are all providing support. Central bank buying from emerging markets has added structural demand to the equation.

​Asian markets surge on yen weakness

​Japan's Nikkei 225surged more than 3% to record highs as the Japanese yen slid to multi-year lows against the US dollar. South Korea and Taiwan also hit records, while Chinese blue chips touched a four-year high in a broad-based Asian rally.

​Yen weakness provides a powerful tailwind for Japanese exporters, whose overseas earnings become more valuable when translated back into the home currency. This dynamic has driven the Nikkei's outperformance relative to other developed markets in recent sessions.

​South Korean and Taiwanese markets benefited from strength in technology shares, mirroring gains seen on Wall Street. Semiconductor companies in particular enjoyed strong buying, reflecting optimism about demand for artificial intelligence chips.

​China's rally appears more fragile, built on hopes for additional policy stimulus rather than concrete economic improvements. While blue chips have recovered from recent lows, the gains lack the conviction seen elsewhere in the region.

​UK companies deliver mixed fourth quarter updates

​Persimmon reported 12% growth in completions for 2025, with average selling prices up 4% and underlying pre-tax profit expected at the upper end of market expectations. The housebuilder entered 2026 with a robust order book and stable cost outlook.

​Whitbread said trading momentum remained positive in the third quarter (Q3), with group sales up 2% and UK revenue per available room rising 3%. The hotels group increased expected cost efficiencies to £75m - £80m and reiterated confidence in its full-year outlook.

​PageGroup reported a tougher picture, with fourth quarter (Q4) gross profit down 4.6% year-on-year (YoY). Growth in the US and Asia was offset by weaker conditions in the UK and Europe amid subdued client and candidate confidence.

​Games Workshop delivered record first-half results, with revenue rising to £332.1m and operating profit climbing to £140.4m. Strong core growth across trade, retail and online more than offset a sharp fall in licensing revenue.