US stocks opened higher on Monday as easing tensions between the United States and Iran boosted investor sentiment, while a sharp decline in oil prices lifted travel-related stocks ahead of a crucial week featuring major technology earnings, key inflation data and the Federal Reserve’s interest rate decision.

The Dow Jones Industrial Average climbed about 602 points, or 1.16%, while the S&P 500 advanced 0.79%.

The Nasdaq Composite gained 0.86% as investors looked beyond last week’s market weakness driven by geopolitical tensions and concerns over artificial intelligence spending.

The rebound came after the United States and Iran paused hostilities over the weekend, reducing immediate concerns over energy supply disruptions.

However, markets remained alert as attacks by Yemen’s Iran-aligned Houthis on Saudi oil installations along the Red Sea continued, while shipping through the Strait of Hormuz remained below normal levels.

Oil prices tumble as travel stocks gain

A sharp drop in crude prices supported sectors that typically benefit from lower fuel costs.

Brent crude futures fell about 6.8% to around $90.10 per barrel, while US West Texas Intermediate crude declined roughly 5.7% to about $84.20 per barrel after the pause in hostilities reduced immediate fears of supply disruptions.

The decline in oil prices lifted airline and cruise stocks in trading.

United Airlines and Southwest Airlines rose more than 3%, while Royal Caribbean gained 2.7% and Carnival advanced 4.3%.

Energy companies, however, moved lower as crude prices retreated. Occidental Petroleum and Exxon Mobil each declined about 2% in trading.

Investors also continued to monitor broader geopolitical developments after Ukraine reportedly struck an Iranian commercial vessel in the Caspian Sea, prompting Tehran to accuse Kyiv of carrying out a hostile act.

Fed decision and inflation data dominate market focus

Attention has shifted to the Federal Reserve’s policy meeting scheduled for Wednesday, with investors widely expecting policymakers to leave interest rates unchanged.

Market participants, however, continue to price in at least 25 basis points of rate hikes later this year.

The June Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation measure, will be released a day after the policy decision and is expected to provide further guidance on the outlook for monetary policy.

Volatility expectations eased, with the CBOE Volatility Index falling to 17.77.

Markets ended last week under pressure as rising oil prices and escalating conflict in the Middle East fueled concerns that inflation could remain elevated ahead of the Fed meeting.

Big Tech earnings to test AI investment outlook

This week’s earnings season is expected to provide another major test for investor confidence in artificial intelligence spending.

Microsoft, Amazon, Meta Platforms and Apple are all scheduled to report quarterly results after concerns intensified last week following Alphabet’s increased capital spending plans and negative free cash flow, along with Tesla’s weak cash generation.

In trading, Microsoft, Amazon and Meta each gained more than 1%, while Apple edged 0.7% higher.

However, Nvidia fell 0.26%.

Despite Monday’s rebound, investors remain cautious after the recent selloff in chip stocks.

The Nasdaq Composite is down about 8% from its record high, while the Philadelphia Semiconductor Index entered bear market territory earlier this month after falling more than 20% from its recent peak.

The coming earnings reports from the largest technology companies are expected to determine whether enthusiasm for AI infrastructure spending returns or concerns over rising capital expenditures continue to weigh on semiconductor and technology stocks.

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The gold market continued to struggle to attract a consistent safe-haven bid on Monday, even as fresh US economic data pointed to weaker-than-expected growth in the manufacturing sector.

Gold prices showed limited reaction to the disappointing durable goods figures.

Analysts noted that weaker manufacturing activity could potentially offer some support to the precious metal.

Spot gold was last trading at $4,087.17, up 0.80% on the day, as per data from commodity trading platforms.

US durable goods orders rise less than expected

The Commerce Department announced on Monday that US durable goods orders rose 0.3% in June.

The increase followed a revised 4.0% decline in May.

The June reading came in below economists’ consensus expectations. Economists had forecast a 1.6% increase in durable goods orders.

The data highlighted continued weakness in the US manufacturing sector.

Gold moves above $4,100

Earlier on Monday, gold climbed above $4,100 an ounce.

The move came as a pause in US-Iran attacks pushed oil prices and the dollar lower.

The price action gave bullion an unusual lift from easing geopolitical tension rather than a fresh rush into traditional safe-haven assets.

Spot gold rose 1.4% to $4,110.56 an ounce by 0200 GMT.

US gold futures also advanced, gaining 1% to $4,112.10.

The decline in the dollar provided another source of support for bullion.

The dollar index slipped 0.3%, making gold cheaper for buyers using other currencies.

The move in gold came as markets responded to changes across several major asset classes.

The retreat in the dollar helped improve the appeal of the precious metal, while lower oil prices influenced broader market sentiment.

Silver rallies as oil prices retreat

Silver also advanced sharply during Monday’s trading session.

Earlier in the day, silver surged towards $60 an ounce as a sharp retreat in oil prices encouraged precious-metals traders to look beyond immediate geopolitical risks.

The move also brought renewed attention to the outlook for interest rates.

Spot silver climbed 2.8% to $59.81 in early Asian trading.

The gain extended a broader rally across precious metals, with gold simultaneously moving above the $4,100 level.

The rise in silver came as traders reassessed the factors influencing precious-metals markets.

Rather than focusing solely on immediate geopolitical developments, market participants appeared to be paying greater attention to oil prices and the potential direction of interest rates.

Gold, meanwhile, remained higher despite its limited reaction to the weaker US durable goods data.

The precious metal continued to trade with an uneven safe-haven bid as investors weighed slowing manufacturing activity, elevated inflation pressures and the outlook for Federal Reserve policy.

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Cardano (ADA) is trading at a decisive point after spending the past several sessions under sustained selling pressure.

While bulls have managed to defend key support levels, repeated failures to reclaim higher resistance have left traders waiting for a clear directional move.

With technical indicators sending mixed signals and derivatives traders maintaining a cautious stance, the next move above or below the $0.17 region could determine ADA’s short-term trajectory.

Cardano holds support, but bullish momentum remains limited

ADA is changing hands near $0.165, placing it within a narrow trading range that has attracted close attention from market participants.

The token has repeatedly rebounded around the $0.160-$0.150 support zone, preventing a sharper decline despite persistent bearish pressure.

However, the recovery has been equally challenging.

Price action continues to struggle below the $0.173 resistance area, while the 50-day Exponential Moving Average (EMA) near $0.175 remains another important hurdle for the token.

Until these levels are reclaimed, the broader technical structure continues to favor caution rather than a confirmed bullish reversal.

Derivatives data shows traders remain cautious

Activity in the derivatives market suggests that professional traders are still positioning conservatively.

Recent market data indicates that the long-to-short ratio stands near 0.82, meaning there are more bearish positions than bullish ones.

Funding rates have also remained negative, a sign that short sellers continue to dominate futures positioning.

This cautious sentiment is also reflected in momentum indicators.

The Relative Strength Index (RSI) is hovering around 45, indicating that neither buyers nor sellers have established overwhelming control.

At the same time, the Moving Average Convergence Divergence (MACD) has shown early signs of stabilization but has not yet delivered a decisive bullish crossover capable of confirming a trend reversal.

Together, these indicators suggest that while selling pressure has eased compared with previous sessions, traders are still waiting for stronger confirmation before increasing bullish exposure.

The $0.1745 level has become the key battleground

The technical picture now revolves around whether ADA can establish itself above the $0.1745 region.

One short-term trading framework identifies $0.1687 as an important breakout level.

A confirmed four-hour candle close above $0.1687 would strengthen the bullish case and could open the door to an advance toward approximately $0.1808, with $0.1900 emerging as the next notable resistance if buying momentum continues.

On the other hand, failure to hold support could shift the outlook quickly.

A four-hour close below $0.1605 would indicate that sellers have regained control, increasing the probability of a decline toward $0.1553.

If broader market weakness persists, the next major support is located around $0.150, followed by the $0.137 region, which represents another important historical demand area.

Longer-term fundamentals continue to support market interest

Although short-term technicals remain mixed, Cardano’s broader ecosystem continues to evolve.

The network’s transition toward decentralized governance following the Chang upgrade remains one of the project’s most significant developments.

The governance framework expands community participation in decision-making while laying the foundation for future protocol upgrades.

At the same time, investors continue to monitor growth across Cardano’s decentralized finance ecosystem.

Total Value Locked (TVL), stablecoin activity, and the expansion of real-world asset (RWA) initiatives remain closely watched indicators of network adoption.

Even with these long-term developments, broader cryptocurrency market conditions continue to play an important role in ADA’s performance.

Bitcoin’s direction, overall market liquidity, and investor risk appetite are likely to influence whether Cardano can build enough momentum to challenge higher resistance levels.

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Plug Power stock remains in a deep bear market after falling by over 50% from the highest point this year. This retreat will be put to the test on August 7 after the company publishes its financial results. So, will the stock rise or drop after its earnings report?

Options market suggests high volatility after earnings

Plug Power stock normally experiences substantial volatility whenever it publishes its financial results. For example, it jumped by 13% when it released its numbers in April and 30% after its numbers in March.

The options market is positioning itself for high volatility after the earnings release, with the implied volatility for those expiring on August 7 being at 107%. This puts it in the top 25% in terms of volatility.

Barchart data shows that its total put volume stands at 956, while the call volume is at 973. This gives it a put/call volume ratio at 0.98. In terms of open interest, the put and call open interest soared to 1,071 and 7,457, respectively. It has a put/call open interest ratio of 0.14, which is a highly bullish sign as it means that investors are buying more calls than puts.

Analysts predict Plug Power revenue growth

One potential reason behind the bullish positioning is that analysts predict the company will continue growing, helped by its large deals with Amazon and Walmart.

The average estimate among analysts is that its revenue will come in at $170 million, with one analyst seeing it rising to $173 million. 

Notably, the loss per share is expected to improve from 18 cents to 8 cents, a sign that the company is making progress in its profitability ambitions. Plug Power expects that it will turn a net profit in the next few years.

For the year, analysts expect the company to make $813 million, up by 15% YoY, followed by $$962 million next year. There is a likelihood that the company will cross the $1 billion annual revenue mark as soon as next year.

The most recent results showed that Plug Power’s business did well, with its revenue rising by 22% to $163 million. Its gross margin improved to minus 13% from minus 55% in the same period last year. 

Plug Power stock price technical analysis

PLUG stock chart | Source: TradingView

The daily chart shows that the PLUG stock has been in a strong bearish trend, falling from $4.32 in May to the current $2.09. It is slowly approaching the extreme oversold level of the Murrey Math Lines tool.

At the same time, the Relative Strength Index (RSI) is nearing the oversold level of 30. It has been falling since peaking at 73 earlier this year.

Therefore, there is a likelihood that the stock will rebound, potentially to the ultimate support level of $2.35. This rebound is possible as the company is highly shorted, with the short interest rising to 24%. 

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Alphabet GOOGL shares rebounded on Monday after suffering a sharp selloff following last week’s quarterly earnings, with several Wall Street brokerages maintaining bullish recommendations even as they trimmed price targets in response to the company’s aggressive artificial intelligence investment plans.

Shares of the Google parent rose nearly 3% at the market open, signalling that investors were buying the dip after last week’s decline.

The gain came with a broader recovery in markets amid a pause in fighting between the US and Iran over the weekend, with both the S&P 500 and the Nasdaq 100 up by 0.7%.

Even with Monday’s recovery, the stock remained down about 6.6% over the past five trading sessions after investors reacted negatively to the company’s sharply higher capital expenditure guidance and its first-ever quarter of negative free cash flow since listing in 2004.

The rebound comes as analysts increasingly argue that while Alphabet’s AI spending will weigh on cash generation in the near term, it also strengthens the company’s long-term competitive position across cloud computing, search and digital advertising.

Brokerages cut targets but keep bullish stance

The pattern emerging across Wall Street has been notable.

Several brokerages have lowered their price targets for Alphabet while leaving their positive ratings unchanged, signalling that analysts still expect the stock to outperform despite becoming more conservative on near-term valuation.

Phillip Securities upgraded Alphabet to Buy from Accumulate, although it reduced its price target to $425 from $450.

Even after the cut, the revised target implies roughly 33% upside from Friday’s closing price.

The brokerage said Alphabet delivered “robust revenue growth across core business segments”, supported by resilient advertising performance following Gemini integration.

Second-quarter revenue and adjusted earnings both increased 24% from a year earlier, while Google Cloud revenue surged 82% to $24.8 billion, comfortably beating analysts’ expectations.

However, analyst Serena Lim Yi Qi noted that Alphabet’s record AI spending resulted in free cash flow turning negative.

“Free cash flow turned negative for the first time due to heavy AI investment, but we believe temporary FCF pressure should support stronger long-term AI growth and revenue visibility,” Qi wrote.

She added that Alphabet’s vertically integrated AI ecosystem and Gemini models should continue supporting growth across its advertising and cloud businesses.

Other research firms have taken a similar approach.

DA Davidson reduced its price target to $350 from $375 while maintaining a Neutral rating.

Cantor Fitzgerald lowered its target to $420 from $435 but kept its Overweight recommendation, citing stronger-than-expected Google Cloud performance alongside rising AI infrastructure costs.

Raymond James also reduced its target to $400 from $425 while reiterating its Strong Buy rating, describing results as broadly in line with expectations and highlighting stronger performances from YouTube and Google Cloud despite relatively softer Search growth.

AI spending overshadowed blockbuster cloud growth

Alphabet’s second-quarter earnings reflected both the opportunities and costs associated with the AI race.

Google Cloud revenue jumped 82% year over year to $24.8 billion, far exceeding analysts’ forecasts for roughly 64% growth, according to LSEG data.

Yet the positive earnings surprise was overshadowed by management’s announcement that capital expenditure during 2026 is now expected to reach between $195 billion and $205 billion, up from earlier guidance of $180 billion to $190 billion.

The spending plans also surpassed analyst estimates of approximately $188 billion.

At the same time, Alphabet reported negative free cash flow of $5.9 billion, reversing nearly $25 billion in positive free cash flow generated during the corresponding quarter last year.

Management acknowledged that pressure on cash generation is likely to continue.

Chief Financial Officer Anat Ashkenazi said the higher spending primarily reflects efforts to expand computing capacity fast enough to meet surging AI demand.

She also cautioned investors that free cash flow would remain under pressure as Alphabet continues building technical infrastructure to support future growth.

Investors worry about mounting capital costs

The market reaction reflected growing concerns that even the world’s largest technology companies are now spending faster than they generate cash.

Thomas Monteiro, senior analyst at Investing.com, questioned whether investors would remain patient if capital spending continued climbing.

“After a negative cash flow quarter, the new raise in capex does not sit well for Alphabet,” he said.

“The market’s most reliable cash generators are now spending more than they bring in. As long as revenue keeps accelerating, investors will tolerate it. But capital has a real cost again, and the room for error is shrinking every quarter.

Moody’s warns AI boom is reshaping Big Tech finances

Credit ratings agency Moody’s believes the industry’s investment cycle is fundamentally changing how large technology companies finance their businesses.

In a research note released this week, Moody’s said the AI infrastructure race is forcing companies that traditionally relied on software and intellectual property into far more capital-intensive business models.

“Previously, these companies relied on asset-light structures centered on software, intellectual property, and scalable cloud services that required modest capital investment,” Moody’s said.

“The transition from asset-light to asset-heavy models requires unprecedented levels of investment and capital raising.”

The agency estimates that annual capital expenditure across Alphabet, Microsoft, Amazon, Meta, Oracle and CoreWeave will reach approximately $785 billion in 2026 before approaching $1 trillion the following year.

According to Moody’s, direct debt across those companies has already climbed to roughly $460 billion.

The ratings agency warned that the investment surge “threatens credit quality” as companies increasingly rely on debt, equity issuance and other financing methods to fund data centres and AI infrastructure.

Analysts argue returns justify the spending

Despite concerns over cash generation, several analysts argue Alphabet is already demonstrating that its investments are paying off.

Google Cloud continues to grow substantially faster than many rivals, while cloud operating margins have also improved.

Morningstar analyst Malik Ahmed Khan said investors should focus more closely on the financial returns being generated from Alphabet’s AI investments.

“We’d position investor attention on the real returns the firm is generating from its large AI investments, including significant growth in its cloud business and core advertising business. We model continued acceleration as the firm’s hardware sales inflect upward in 2027,” Khan wrote.

“We maintain our USD 433 fair value estimate for wide-moat Alphabet, and continue to view its AI monetization across chips, infrastructure, models, and applications as a great way for investors to gain AI exposure without being limited to a specific part of the AI stack.”

Other market commentators have reached similar conclusions.

According to The Motley Fool, Alphabet’s cloud revenue growth, improving margins and continued strength in Search demonstrate that the company is already extracting commercial value from its AI investments.

“Given the cost edge the company currently has with its TPUs, the right move is to press its advantage and spend aggressively on AI infrastructure. This is the smart decision, regardless of how the stock reacts,” wrote Geoffrey Seiler.

He noted that Alphabet currently trades at roughly 22 times forward earnings estimates for 2026, describing that valuation as attractive given its leadership across multiple layers of the AI ecosystem.

“Alphabet remains well-positioned, and its growth prospects look bright,” Seiler wrote.

“I’d be a buyer of Alphabet stock on this dip.”

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