On Monday, Jan. 26, the S&P 500 rose about 0.5%, the Nasdaq composite gained roughly 0.4% and the Dow Jones Industrial Average advanced around 0.6%.
The U.S. dollar slid to a four-month low, with DXY falling to 95.75, while gold surged to $5,000.
The Yen strengthened sharply due to the “rate-check” from the Bank of Japan, signaling its discomfort with the speed and scale of Yen weakness. Any foreign exchange intervention would aim to smooth volatility rather than defend a specific level.
Although the Yen is free-floating, both the BOJ and the Federal Reserve want to avoid extreme currency movements, as a weaker Yen raises non-wage-driven inflation in Japan. The S&P 500 was roughly flat, the Nasdaq edged lower and the Dow declined modestly Tuesday, Jan. 27.
UnitedHealth posted its earnings beat that fell after President Donald Trump outlined a lower-than-expected increase to Medicare Advantage reimbursement rates through 2027, dragging on the health care sector. Globally, markets reacted to deal momentum between India and the EU, while South Korea scrambled to pass a U.S. investment bill after Trump threatened to raise tariffs from 15% to 20%.
On Wednesday, Jan. 28, the S&P 500 traded near unchanged, the Nasdaq edged slightly higher and the Dow moved narrowly.
The Fed held rates steady, reinforcing a wait-and-see stance and the labor market showed some signs of stabilization after a gradual softening.
Unemployment was stable but job gains were low. Near-term inflation declined and long-term inflation was consistent with the 2% target; forward guidance depends on incoming data and balance of risk. Gold climbed to $5,500 and geopolitical risk also rose after
Trump warned that Iran was running out of time to reach a deal, raising concerns about potential U.S. military action and adding to risk premiums across markets.
The S&P 500 fell sharply, the Nasdaq underperformed and the Dow declined Thursday, Jan. 29, as technology stocks sold off following earnings.
Microsoft reported a Q2 earnings beat, but its stock plunged about 11%. Investors focused on signs of slowing cloud growth and concerns over elevated artificial intelligence-related spending.
Tesla reported weaker results with revenue declining year-over-year as pricing pressure and slower EV demand weighed on margins. Apple delivered solid earnings with a “remarkable” $144 billion quarter with its best-ever iPhone sales.
Lockheed Martin posted strong results and guidance driven by robust defense demand and a resilient order backlog.
On Friday, Jan. 30, the S&P 500 fell about 0.4% to close near 6,939, the Dow dropped roughly 0.4% to around 48,892 and the Nasdaq slid about 0.9% to roughly 23,462.
Chevron beat earnings as production hit a record, with upside expected from Venezuela, supporting energy stocks.
Trump nominated Kevin Warsh as Fed chair, shifting expectations around the future policy path. In Europe, the Eurozone economy grew 0.3% in the fourth quarter, while gold and silver prices plunged, reversing earlier gains.
