This Week
Friday’s NFP and Unemployment data will be the highlight of the economic week with traders looking for cues on when and how often Fed rate cuts may take place in 2026. Geopolitically, the fallout of the US attack on Venezuela, a major oil exporter, will be considered, while focus could turn to Iran where protests have gathered pace in recent days.
Stocks
BOEING
Boeing’s stock price jumped 5.25% to hit a two month high by Friday’s close. The airliner was boosted by Wednesday’s reports that it had been awarded a $2.7 billion contract for Apache helicopter services from the US Department of Defense. The reports backed the belief in President Trump’s vocal commitment to support the company amid expectations that there may be more contracts to follow. More broadly Boeing has resumed positive momentum due to improving jet deliveries which in turn triggered investment banks to provide upgrades on the company citing a positive future following some difficult years for the company. Boeing will declare its earnings on February 4.
GOLDMAN SACHS
Goldman Sachs’ stock price increased 0.85% as the stock traded close to all time highs amid optimism that 2026 will offer a positive macro backdrop due to forecasts of continued GDP growth and equity earnings expansion, favouring the appeal of banking stocks. Rising treasury yields last week which are seen as favourable for bank earnings boosted prices. Goldman Sachs will post its earnings on January 15th.
Commodities
Crude Oil
Crude oil prices ended the week 0.24% higher, 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 apace. Falling US inventories also provided short term support for prices, but traders remained concerned that oil markets may remain oversupplied in 2026.
Gold
Gold prices dropped 4.3% lower despite some safe haven support for the precious metal. Much of last week’s price action was due to profit taking after Gold soared to fresh all time highs on Friday the previous week. However, investment banks are expecting gold prices to continue rising in the coming weeks.
ALUMINIUM
Aluminum prices climbed 1.5% to hit a four year peak after better than expected Chinese data last week. China is a major consumer of Aluminum and long term demand for construction, EV and manufacturing underpinned the recent rally. Production caps in China due to environmental regulations and tighter European supply are also supporting prices.
EUR/USD
The EUR/USD fell 0.44% declining to a two week low by Friday’s close in another holiday-shortened week as the pair consolidated following gains in recent weeks. Traders were recalibrating Fed expectations at the beginning of the new year following recent better than expected US GDP data. However, while it’s uncertain if or when the ECB will cut rates again, the Fed remains on target to cut rates at least once in 2026.
Recap
Last week the S&P 500 fell 1.1%, the Nasdaq lost 1.6% and the Dow Jones declined 0.7%.
US stock indices turned lower in a holiday shortened week, with tech companies picking up most losses as some traders took profits as a new year began. For the year the wider S&P 500 index was up 16%, but tech stocks of the Nasdaq gained 20%. On Friday Tesla reported its Q4 global delivery numbers of 418,227, which was slightly below expectations. On Saturday the US launched an attack on Venezuela and apprehended President Maduro.
Crude oil prices inched higher, while natural gas prices declined to record a ten day low amid concerns that the energy market might remain in surplus in 2026. Gold and Silver prices both fell as traders decided to take profits in the last trading week of the year. Platinum and Palladium prices declined to more than one week lows, despite some positive Chinese data released early in the week.