Global equity markets finished the week mixed, with US markets posting their second straight week of losses. Geopolitical concerns and trade tensions were top of mind for investors as global leaders met in Davos at the World Economic Forum. President Trump’s sharp rhetoric on Greenland and threats of increased tariffs on several European countries led to sharp losses and a spike in volatility early in the week. Markets stabilized midweek as Trump dialed back his tone, allowing buy-the-dip buyers to return. Generally speaking, better-than-expected Q4 earnings have so far been met with muted responses. In the coming week, we will get earnings results from several of the magnificent seven. The economic calendar provided a constructive backdrop for the US economy. The Federal Reserve is scheduled to meet this week, and it is widely expected to keep its policy rate unchanged at 3.5%-3.75%.
The S&P 500 fell by 0.4%, the Dow lost %, the NASDAQ gave back 0.1%, and the Russell 2000 shed 0.3%. Despite the losses, the market appears to be broadening, which should be considered a positive. The Russell 2000 leads year-to-date returns with a 7.5% return. Gold, Silver, and Copper hit all-time highs. Gold’s price increased by 8.3% on the week, closing at $4,979.60 per ounce. Silver prices increased by $13.24 or 15% to $101.33 per ounce. Copper’s price closed 2% higher at $5.95 per Lb. Bitcoin’s price fell by 6.85% or $6500 to close the week at $88,766. The US Dollar index fell by 1.76%, the largest weekly decline since May of 2025. The US Dollar/Japanese Yen cross closed the week at 155.90, with the Yen’s strength coming on the idea of an imminent intervention by the Bank of Japan.
S&P 500 1/23/2026
As I mentioned, the economic calendar yielded some encouraging news. The Fed’s preferred measure of inflation, the PCE, came in line with expectations on both the November headline and core readings. Headline PCE on a year-over-year basis was up 2.8%, level with the prior reading. Personal Income rose by 0.3%, slightly less than the expected 0.4%. Personal Spending increased by 0.5%, above the estimated 0.4%, showing a resilient consumer. The final reading of Q3 GDP increased to 4.4% from the prior estimate of 4.3%, showcasing solid US economic activity. Initial Jobless claims increased by 1k to 200k, while Continuing Claims decreased by 26k to 1849k. The final reading of the University of Michigan Consumer Sentiment for January increased to 56.4 from 54.
Investment advisory services offered through Foundations Investment Advisors, LLC (“FIA”), an SEC registered investment adviser. FIA’s Darren Leavitt authors this commentary which may include information and statistical data obtained from and/or prepared by third party sources that FIA deems reliable but in no way does FIA guarantee the accuracy or completeness. All such third party information and statistical data contained herein is subject to change without notice. Nothing herein constitutes legal, tax or investment advice or any recommendation that any security, portfolio of securities, or investment strategy is suitable for any specific person. Personal investment advice can only be rendered after the engagement of FIA for services, execution of required documentation, including receipt of required disclosures. All investments involve risk and past performance is no guarantee of future results. For registration information on FIA, please go to https://adviserinfo.sec.gov/ and search by our firm name or by our CRD #175083. Advisory services are only offered to clients or prospective clients where FIA and its representatives are properly licensed or exempted.