This Week–
The key economic event of the week will be Tuesday’s US CPI Inflation data reading, which is expected to shape expectations for a rate cut at the Fed meeting at the end of January. Geopolitically, traders will continue to monitor ongoing protests in Iran and reports of a possible Israeli (and US) strike on its nuclear facilities. In Europe, US Secretary of State Rubio will talk with Danish officials in relation to the US's intention to persuade Greenland to become part of the US.
Stocks –
LOCKHEED MARTIN
Lockheed’s stock price surged 7.21% by the close of business on Friday. The aerospace and defence contractor jumped after it announced the latest major Pentagon deal to expand missile production. Recent gains among Lockheed and other defence contractors followed President Trump’s pledge to pursue a significantly higher defence budget of around $1.5 trillion. An expected increase in US military spending and rising geopolitical tensions between nations are expected to benefit Lockheed, which is up around 16% over the past month. The company is expected to post its earnings on January 29th.
INTEL
Intel’s stock price soared 13.67% to end the week at a 10-month peak, with the chipmaker already up since the beginning of the year by 23.5%. Last week’s surge came after Intel CEO Lip-Bu Tan met with President Trump at the White House, with the latter praising the CEO as a national champion for US semiconductor leadership. Investor confidence has been lifted in the company since the US administration took a significant stake in Intel and indicated that it would support the company with its industrial policy. The market also took stock of news that Intel has begun production of its advanced 18A series 3 chips. Intel is expected to report its earnings on January 22nd.
Commodities
Crude Oil
Crude oil prices grew 2.56%, after ‘black gold’ bounced off a two-week low on Friday as hopes for a US brokered peace deal between Ukraine and Russia faded, while ongoing Ukrainian attacks on Russian energy infrastructure continued. Falling US inventories also provided short-term support for prices, but traders remained concerned that oil markets could remain oversupplied in 2026.
GOLD
Gold prices rallied 3.12% last week following the US capture of Venezuelan President Maduro and after tensions in the Middle East rose as protests against the Iranian regime widened and turned violent. Speculation that Israel or the United States could target Iran also lifted the risk premium. Friday’s lower-than-expected NFP data also reinforced expectations that the Fed will cut rates this year.
SILVER
Silver prices jumped 8% to trade close to the $80 dollar mark, not far from the metal’s all-time high recorded in the previous week. Safe-haven demand driven by developments in Venezuela and the Middle East underpinned the metal, while a weaker jobs report on Friday was followed by a 6% rise in Silver on Friday. Silver’s price has rallied in recent months, and the current trend does not appear to be showing any signs of slowing.
USD/JPY
The USD/JPY increased 0.60% to record a near one-year high by the end of the week. The pair’s sharp movement higher on Friday followed reports that Prime Minister Takaichi could dissolve the Lower House and call a snap election. Unexpected elections in Japan often weaken the yen due to policy uncertainty alongside the possibility of complicating the Bank of Japan’s decisions on interest rates. If reports are accurate, rate hikes could be delayed.
Recap –
Last week, the S&P 500 climbed 1.01%, the Nasdaq gained 1.9%, and the Dow Jones jumped 2.3%.
US stock indices traded higher with the broader S&P 500 hitting a new record high on Friday after the latest Nonfarm payrolls data came in at 50,000, below the expected 73,000, while unemployment declined, showing a generally healthy US economy, which could see the Fed cut rates 1-2 times in 2026. The week was marked by geopolitical developments as protests in Iran gathered pace and turned violent, while the US advanced plans to control and increase the output of Venezuela’s oil industry.
Crude oil prices pushed firmly higher, whereas natural gas prices slumped to a more than two-month low amid warmer weather in the US. Gold and Silver prices both traded higher on safe-haven demand. Platinum and Palladium prices also saw gains in a positive week for commodities.