Caught the market vibes on Monday and there's definitely some solid momentum building. The S&P closed up 0.54%, Dow up 1.05%, and Nasdaq 100 gained 0.73%. Futures also showing strength heading into the week.

The solid US manufacturing data was the real driver here - January ISM index jumped to 52.6, marking the strongest expansion in over 3 years. Beat expectations pretty handily. That's the kind of economic signal that gets traders excited about growth prospects.

Chip stocks had a field day with the positive sentiment. Sandisk, Western Digital, Micron, Intel all rallying hard. AI infrastructure plays continuing to attract money. Meanwhile airlines caught a bid too since crude tanked over 4% on easing geopolitical tensions.

Not all green though. Crypto stocks got hammered - Bitcoin dropped hard to near 10-month lows and nearly $590M in long positions got liquidated. Energy producers also took it on the chin with crude weakness. Natural gas names were even worse, down 25%+.

The solid manufacturing read is making people reconsider Fed rate cut expectations though. Bostic came out saying no cuts expected for 2026, which knocked bonds lower and pushed 10-year yields up to 4.27%. Markets pricing in almost zero chance of a rate cut at the March meeting.

China throwing a wrench in the works too - their manufacturing PMI fell to 49.3, showing contraction. That's bearish for global growth narratives. Plus we're still dealing with the government shutdown uncertainty, though Congress is back and might vote on funding this week.

Looking ahead, earnings season is ramping up with 150 S&P 500 companies reporting this week. So far 78% of reporters are beating estimates, which is solid support for the market. Bloomberg expects Q4 earnings growth around 8.4% year-over-year.