US shares rose for a third straight session. The DJIA added about 300 points (0.65%), the S&P 500 rose 0.6%, and the Nasdaq gained about 0.5%. Markets were waiting for the Fed’s January minutes, due at 2:00 PM ET. The Fed held rates at 3.50% to 3.75%. Markets see roughly a 90% chance of no change in March, and the first cut is not expected before June.

Ai Trade And Fed Focus

Nvidia rose more than 2% after Meta expanded an AI chip deal. Meta plans to deploy millions of Nvidia chips in US data centres. The order includes Grace CPUs and Vera Rubin GPU systems, and is described as being worth tens of billions. AMD fell nearly 4%. Amazon rose nearly 2% after Pershing Square increased its stake by 65% in the fourth quarter. Goldman Sachs gained nearly 3%. Palo Alto Networks fell about 10% even though Q2 adjusted EPS was $1.03 on $2.59 billion in revenue, versus $0.94 and $2.58 billion expected. Its Q3 EPS outlook was $0.78 to $0.80, below the $0.92 consensus. The stock is down about 11% year to date. The higher costs were tied to a $25 billion CyberArk acquisition and a $3 billion Chronosphere deal. Applied Digital fell nearly 8% after Nvidia exited a $177 million stake.

Earnings And Options Volatility

Garmin jumped after adjusted EPS of $2.79 on $2.12 billion in revenue, beating estimates of $2.39 and $2.01 billion. It guided 2026 EPS of $9.35 on $7.9 billion in revenue, versus $8.51 and $7.4 billion expected. Wingstop rose more than 13% after adjusted EPS of $1.00, above the $0.84 estimate. Q4 domestic same-store sales fell 5.8%. Its 2026 guidance called for flat to low-single-digit growth. Gold rose above $5,000 per ounce, near a two-week high. China’s central bank bought gold for a 15th straight month in January, after a late-January crash tied to Kevin Warsh’s nomination. Oil rose more than 2% to nearly $64 per barrel on Russia-Ukraine tensions and reports around Iran nuclear talks. December housing starts were 1.4 million annualised, released late after a government shutdown. After the rebound from last week’s AI-driven selloff, we expect volatility to stay elevated in technology. The Fed minutes matter, because any signal that rate cuts could be pushed beyond June could quickly end the current dip-buying. The latest January 2026 jobs report also showed surprising strength, similar to the strong reports seen across 2024. That gives the Fed less reason to cut rates soon. We expect the AI trade to become more selective. Nvidia continues to strengthen its lead with the new Meta partnership. One approach is a pairs trade that favours Nvidia over AMD using call options, especially after AMD’s nearly 4% drop today. The move supports the winner-take-all pattern seen in AI hardware over the past two years. Earnings are driving big one-day moves, which can create opportunities in single-name options. Palo Alto Networks falling 10% on weaker guidance may make puts attractive. At the same time, high implied volatility after earnings in names like Garmin and Wingstop can make strategies such as selling puts appealing for traders who think the new highs will hold. Similar volatility is likely in other tech and consumer names reporting in the coming weeks. We are also watching commodities for signs that strength could continue. Gold futures are above a record $5,000 per ounce. With steady central bank buying and the market looking for a future Fed pivot, call options on gold ETFs may be attractive, similar to past rallies during easing cycles. Geopolitical risk is also lifting crude toward $64 a barrel, making bullish oil positions a reasonable hedge against further instability. Create your live VT Markets account and start trading now.

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