CNBC Daily Open: Investors expected the Fed to hold rates — it was Powell's comments that drew interest

• Two Fed governors (Stephen Miran and Christopher Waller) dissented and voted for a quarter-point rate cut, though the majority held rates unchanged
• Powell emphasized the importance of Fed independence, attending what he called 'perhaps the most important case in the Fed's 113-year history' regarding whether President Trump can fire Governor Cook
• Safe haven assets including gold, silver, and the Swiss franc reached new highs amid market uncertainty, while U.K. Prime Minister Starmer's China visit signaled efforts to mend bilateral ties

Market Summary: Fed Holds Rates as Powell Addresses Political Independence

Key Monetary Policy Decision:

The Federal Reserve maintained interest rates in the 3.5%-3.75% range as expected on January 28, 2026. However, the decision wasn't unanimous—Governors Stephen Miran and Christopher Waller dissented, voting for a quarter-point cut. Analysts suggest U.S. monetary policy may not loosen in the near future.

Political Concerns Take Center Stage:

Fed Chair Jerome Powell drew significant attention with his comments on central bank independence. He attended a legal case involving Fed Governor Lisa Cook that will determine whether President Trump can remove her, calling it potentially the most important case in the Fed's 113-year history. Powell advised his successor to avoid elected politics.

Market Performance:

The S&P 500 briefly touched the historic 7,000 level for the first time before closing flat. The Nasdaq Composite also ended unchanged, while the Dow Jones rose modestly.

Semiconductor Sector Highlights:

• ASML: The Dutch lithography equipment maker is critical to Nvidia's AI chip production, particularly the Blackwell series
• SK Hynix: Beat rival Samsung Electronics in operating profit for the first time in 2025, driven by its leading position in high-bandwidth memory chips for AI processors
• Samsung Electronics: Reported record quarterly revenue despite being overtaken by SK Hynix

International Developments:

UK Prime Minister Keir Starmer visited China—the first British leader trip to Beijing in eight years—with cooperation agreements announced in key sectors.

Safe Haven Assets:

Gold, silver, and the Swiss franc hit new highs amid widespread uncertainty, though Switzerland faces concerns about disinflationary pressure.