The Cboe Volatility Index, a gauge of stress within the U.S. inventory market, declined over 5% on Monday after gaining 45% in January. Some buyers count on volatility to edge down this week as many hedge funds have already decreased brief positions on shares which have attracted an incredible quantity of consideration on the web.

In premarket buying and selling, among the most closely traded shares amongst particular person buyers prolonged latest positive aspects.

AMC Leisure Holdings

AMC 53.65%

rallied 22% on Monday forward of the market open, whereas headphone producer Koss gained 15.5% and

GameStop

rose 8.6%.

“There has at all times been, in monetary markets, a need on the a part of buyers to get wealthy fast and so you should still wind up with remoted incidents by which you wind up with risky efficiency of sure belongings,” mentioned

Mark Dowding,

chief funding officer at BlueBay Asset Administration.

The broader inventory market is more likely to proceed its rally this 12 months, he added. “We expect markets are going to do rather well within the close to time period since you’ve received the hope that the economies are going to get higher and we now have plenty of coverage assist,” Mr. Dowding mentioned.

Silver costs rallied, fueled by a wave of contemporary enthusiasm from on-line merchants. The transfer signifies that the latest bout of volatility is more likely to prolong right into a second week in a minimum of some pockets of the worldwide monetary market.

Probably the most actively traded silver futures climbed over 11% to $29.98 a troy ounce, its highest degree since February 2013. The valuable steel has gained in latest periods after customers on Reddit’s WallStreetBets discussion board posted about executing a “brief squeeze” much like ones credited with fueling latest positive aspects in different shares corresponding to GameStop and AMC. That implies particular person buyers are taking over hedge funds which can be betting on silver costs falling.

“I completely underestimated this,” mentioned Carsten Fritsch, a commodities analyst at Commerzbank. “I couldn’t think about this might ever occur to a critical and huge market like silver.”

In bond markets, the yield on the 10-year Treasury be aware ticked all the way down to 1.084%, from 1.090% Friday. Yields fall when costs rise.

Traders are persevering with to observe the company earnings season, with 111 corporations from the S&P 500 index reporting this week.

Thermo Fisher Scientific

is about to report earnings earlier than the opening bell, and the outcomes from large expertise corporations together with Amazon.com and Alphabet are due Tuesday.

The Institute for Provide Administration’s manufacturing index for January, due at 10 a.m. ET, is predicted to point out U.S. manufacturing unit exercise continued to develop, although maybe at a slower tempo than earlier months.

Abroad, the pan-continental Stoxx Europe 600 superior 0.8%.

In Asia, benchmark indexes closed greater. South Korea’s Kospi climbed 2.7% and Hong Kong’s Grasp Seng superior 2.2%. China’s Shanghai Composite gained 0.6%.

Write to Caitlin Ostroff at caitlin.ostroff@wsj.com