Dow Jones Industrial Average dips as AI investments drive broader market gains

The Dow Jones eased back below 47,500 on Monday, though losses remain limited.
Equity markets are overall higher to start the new trading week as Mag 7 investment roulette continues.
ISM PMI data showed a slight easing in business sentiment, but the index remains within normal levels.

Joshua Gibson FXStreet

The Dow Jones Industrial Average (DJIA) faced fresh declines on Monday, kicking off the new trading week with a 200-point decline. The Dow briefly tested below the 47,250 level for the first time in over a week, as 'Magnificent 7' concentrated investment gains lift other indexes.

Amazon (AMZN) saw a fresh rally on Monday, climbing around 5% after the internet ownership and baubles shipping giant announced a deal to invest $38 billion in ChatGPT maker OpenAI. Iren (IREN) data center supplier also inked its own $9.7 billion deal with Microsoft to provide additional hardware architecture to meet the ever-growing LLM tech growth demand. At the top of the pile, the lone chipmaker giant at the top of the AI tech mountain Nvidia (NVDA) climbed 3.7% as both of the AI investment deals announced on Monday will involve providing access to Nvidia hardware.

ISM PMIs show businesses still struggling with cautious buyers

The latest Institute for Supply Management (ISM) Purchasing Managers Index (PMI) report dipped to 48.7 in October, missing expectations and falling back slightly from September’s 49.1. Demand indicators within the ISM report broadly improved over the month, however all still remain in contraction territory, implying businesses are struggling to find new customers or convince current clients to expand operations. Overall, manufacturing activity among businesses that bothered to submit responses to surveys showed a net decline in economic activity in the manufacturing sector for an eighth straight month.

The Federal Reserve’s (Fed) speech patterns have taken a hard left turn as of late, veering into a more chaotic presentation than usual as policymakers’ opinions begin to deviate from a carefully crafted consensus. Investors have grown used to a certain level of organized pageantry from Federal Reserve talking points, but a brave new world has opened up before markets based on Fed Chair Jerome Powell’s surprisingly cautious stance at the Fed’s latest rate call. Fed officials also gave a rare three-way vote last week, with a few flyaway voters advocating for even steeper rate cuts or no cuts at all.

The shifting stance within the Fed has thrown market expectations for a December interest rate cut into jeopardy. According to the CME’s FedWatch tool, rate traders are still pricing in over 65% odds that the Fed will deliver a third straight interest rate cut on December 10; however, the majority of rate market bettors see even greater odds that the Fed will be pushed into waiting until January to deliver another 25 basis point rate cut.

Dow Jones daily chart

Economic Indicator

S&P Global Manufacturing PMI

The S&P Global Manufacturing Purchasing Managers Index (PMI), released on a monthly basis, is a leading indicator gauging business activity in the US manufacturing sector. The data is derived from surveys of senior executives at private-sector companies from the manufacturing sector. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the US Dollar (USD). Meanwhile, a reading below 50 signals that activity in the manufacturing sector is generally declining, which is seen as bearish for USD.

AUD/USD eyes 0.7150 barrier nine-day EMA

AUD/USD inches higher after registering modest losses in the previous day, trading around 0.7130 during the Asian hours. The technical analysis of the daily chart indicates that the pair is moving sideways within the rectangle pattern, suggesting a consolidation as neither the bulls nor the bears have enough momentum to take control of the market.

USD/JPY trades below 160.00 intervention threshold; bullish bias intact

The USD/JPY pair attracts some sellers during the Asian session amid fears that authorities will step in again to prop up the Japanese Yen. Furthermore, the Israel-Lebanon truce prompts some profit-taking around the US Dollar and exerts downward pressure on the currency pair.

Gold defends 200-day SMA at $4,425, but for how long?

Gold is attempting a tepid recovery toward $4,500 early Thursday, as renewed optimism in the Mideast geopolitical front calms market nerves. This cautious optimism across Asian markets weighs on Oil prices, and diminishes the US Dollar’s safe-haven appeal, helping Gold stage a decent comeback from the weekly low of $4,424.

Hyperliquid: ETF demand, capital rotation fuel HYPE rally as Bitcoin melts

Hyperliquid price sustains an upward trend near its all-time high of $75.76 on Thursday after posting 80% gains in May, while Bitcoin (BTC) retraces below $65,000, triggering a market-wide panic.

Kevin Warsh takes the Fed helm: What it means for the US Dollar

The Federal Reserve moves away from the highly predictable "forward guidance" model of the Jerome Powell era to a new “Kevin Warsh environment”, characterized by less communication, more policy surprises, and an increased focus on the Fed's complex balance sheet.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.