Technology again led a rally on Wall Street, as Nvidia Corp. extended a five-day surge to 15% while Meta Platforms Inc. rose for a 16th session. United States Steel Corp. and Alcoa Corp. followed a move higher in metals. An index of American-listed Chinese shares rose for a third day.

Hedge funds emerged as big buyers of US stocks last week, shifting away from a previously bearish stance in the wake of stronger-than-expected earnings reports. They snapped up US equities at the fastest pace since November, resulting in the heaviest net buying of single stocks in more than three years, according to Goldman Sachs Group Inc.’s prime brokerage report for the week ended on Feb. 7. The activity was heaviest in the information technology sector.

The S&P 500 rose 0.7% Monday while the Nasdaq 100 climbed 1.2%. The yield on 10-year Treasuries was little changed at 4.5%. The Bloomberg Dollar Spot Index gained 0.2%. Gold topped $2,900 an ounce. Oil advanced from near its lowest levels this year as shrinking Russian production eased concerns over a glut.

The resilience of stocks in the face of tariffs may invite further trade escalations, making equity pullbacks likely, according to Deutsche Bank AG strategists including Binky Chadha.

They noted these pullbacks require the same playbook as for geopolitical shocks, which have historically seen sharp but short-lived selloffs, with equities typically bottoming even as the event continues and recouping losses before any de-escalation.

In such scenarios, equities would typically weaken 6%-8%, moving lower for three weeks before gaining strength for three weeks.

“For investors, the greatest market risk likely lies in policy unpredictability,” according to Christian Floro at Principal Asset Management. “Given this environment, diversification is essential to manage portfolio risk and capture opportunities as companies, countries and markets adjust.”

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