General Market News

The U.S. Supreme Court heard arguments on January 21, 2026, regarding President Trump's attempt to fire Federal Reserve Governor Lisa Cook over unproven mortgage fraud allegations. Based on justices' comments during the two-hour hearing, a ruling against Trump appears likely, with concerns focused on due process violations and protecting the Fed's independence.

• A majority of justices, including Trump appointees Amy Coney Barrett and Brett Kavanaugh, signaled support for Cook, questioning why the administration did not provide her a formal hearing to address allegations before attempting termination
• Kavanaugh warned that ruling for Trump 'would weaken, if not shatter, the independence of the Federal Reserve' and could set a precedent for future presidents to fire Fed governors over policy disagreements
• Chief Justice Roberts suggested the evidence against Cook appeared more consistent with an 'inadvertent mistake' rather than intentional wrongdoing, while Barrett noted economist warnings that Cook's firing could trigger a recession

U.S. stock markets recovered on Wednesday after President Trump ruled out military action to acquire Greenland while speaking at Davos, though he maintained calls for immediate negotiations and threatened 25% tariffs on opposing EU countries. The rebound follows a two-day selloff that included the worst session since October, driven by geopolitical uncertainty and a 'sell America' trade by European investors protesting Trump's territorial ambitions. Analysts expect rangebound trading ahead as the diplomatic standoff remains unresolved.

• Major indexes rebounded midday with the Dow up 0.60%, S&P 500 up 0.44%, and Nasdaq up 0.19% after Trump's Davos remarks eased immediate military concerns
• The selloff combined traditional uncertainty liquidation with a 'sell America' protest trade by Europeans dumping U.S. stocks, Treasuries, and the dollar in opposition to Trump's Greenland pursuit
• Technical indicators show vulnerability with the S&P 500 straddling its 50-day moving average at 6,831.89, while analysts warn of potential escalation similar to April 2025's Liberation Day tariff announcement that caused 9-11% losses in two days

Citadel CEO Ken Griffin criticized Biden-era regulations as 'exhausting' for American businesses, claiming they created constant friction and cost the U.S. economy significantly. Speaking at the World Economic Forum, Griffin said the Trump administration's shift away from heavy-handed regulatory enforcement has provided relief to entrepreneurs and allowed them to refocus on business growth.

• Griffin cited the DOJ's successful blocking of JetBlue's acquisition of Spirit Airlines as an example of poorly thought-out decisions, noting Citadel was a Spirit creditor and the airline is now in bankruptcy
• The Citadel CEO described Election Day as marking an immediate end to regulatory pressure, calling it a 'giant sigh of relief' that gave entrepreneurs energy to build their businesses
• While acknowledging Trump's deregulation progress has been slow, Griffin emphasized the lighter-touch regulatory enforcement approach has been an 'extraordinary boom for American business'

President Trump's executive order aims to restrict Wall Street investors from purchasing single-family homes to improve affordability, but investors warn the measures may worsen house price inflation by boosting demand without addressing supply constraints. The order directs regulators to promote sales to individuals, requires antitrust scrutiny of institutional purchases, and proposes allowing 401(k) funds for down payments. Wall Street institutions own roughly 3% of single-family rentals, having acquired thousands of homes since the 2008 financial crisis.

• U.S. home prices have risen roughly 75% since Trump's 2016 electoral victory, more than double the overall CPI increase, though price growth has recently slowed to just 1.7% year-over-year as of October.
• Investors emphasize housing affordability is primarily a supply problem controlled by local governments, not a demand issue, warning that policies boosting demand without increasing supply will drive prices higher.
• Curbs on institutional investors could slow construction in the build-to-rent sector, as Wall Street landlords account for a large portion of demand for homes built explicitly for rental purposes.

The restaurant industry has surged nearly 20% year-to-date in 2026, making it the sixth-fastest moving industry group out of 197 tracked sectors. This rebound follows a difficult 2025, driven by sustained consumer spending, falling interest rates boosting disposable income, and easier year-over-year sales comparisons.

• Top performers include Kura Sushi (up over 40%), Biglari Holdings (up ~35%), Cracker Barrel (up 30%), and Dave & Buster's (up 28%)
• Nathan's Famous surged nearly 9% after Smithfield Foods agreed to acquire it for $102 per share
• Brinker International rose 3% following a Raymond James upgrade to outperform with a $195 price target (implying 20% upside), with at least four analysts issuing buy ratings this year

Gold prices surged to a record high of $4,898 per ounce on Wednesday, approaching the psychologically significant $5,000 level, driven by a 'sell America' trade as investors reacted to Trump's aggressive tariff threats and geopolitical tensions. The rally reflects a flight to safety amid concerns over Federal Reserve independence, NATO alliance stability, and Trump's Greenland ambitions, with analysts projecting year-end targets between $5,000-$6,000.

• Gold gained 4.3% over three days, while silver rose to $95 per ounce (up 2.5% over three days), with other precious metals like platinum and palladium also seeing demand growth
• The 'sell America' trade triggered a spike in the 10-year Treasury yield to 4.3% (highest since August) and weakness in the U.S. Dollar Index, which fell from 99.32 to 98.60
• Central bank purchases, expectations of easier monetary policy, and elevated geopolitical risks continue supporting gold's momentum as investors seek safe-haven alternatives to U.S. assets

Technology stocks rebounded on Wednesday after President Trump ruled out using military force in Greenland during his World Economic Forum speech in Davos, easing geopolitical concerns. The rally came after Trump had threatened tariffs on eight countries opposing U.S. acquisition of Greenland just a day earlier. Chip stocks led the tech sector gains.

• Chip stocks rallied sharply with Intel up 11%, Micron Technology up 9%, and Advanced Micro Devices up 8%
• Trump's softened rhetoric on Greenland reversed Tuesday's global sell-off triggered by his tariff threats against eight countries
• Major tech stocks including Meta, Amazon, and Apple posted gains ranging from 1.5% to over 2%

The European Parliament suspended work on proposed U.S.-EU trade measures on Wednesday in response to President Trump's continued threats regarding Greenland and Denmark. The halted deal would have suspended tariffs on industrial goods and established a tariff system for U.S. agriculture products entering the EU.

• Bernd Lange, chair of Parliament's International Trade Committee, cited 'continued and escalating threats, including tariff threats' against Greenland, Denmark, and European allies as reason for suspending the Turnberry legislative proposals
• Trump stated at the World Economic Forum in Davos that the U.S. is the only nation positioned to control and secure Greenland, framing it as a strategic security necessity for both the U.S. and Europe
• Greenland, the world's largest island located in the Arctic, governs its own domestic affairs while remaining within the Kingdom of Denmark

Pending home sales in the U.S. dropped 9.3% month-over-month in December 2025, defying analyst expectations of a slight gain, according to the National Association of Realtors. The decline was driven by stagnant mortgage rates around 6.25%, a 9% drop in housing inventory to just 1.18 million homes, and ongoing economic uncertainty, dampening the outlook for early 2026.

• Sales fell in all U.S. regions month-over-month and were down 3% year-over-year, with only the South showing annual gains
• Housing inventory hit 1.18 million units in December, matching the lowest level of 2025 and down 9% from November despite being 12% higher than the prior year's extremely low base
• Homes stayed on the market longer at an average of 39 days versus 35 days in December 2024, reflecting weakened consumer enthusiasm amid limited options

European lawmakers suspended approval of the EU-U.S. trade deal agreed in July 2024, citing President Trump's threats to impose 10% to 25% tariffs on European nations and his push to acquire Greenland. The suspension will remain until clarity is provided on the Greenland-related tariff threats, which European Parliament members say violate the terms of the trade pact.

• Trump proposed tariffs of 10% to 25% on European nations, which EU officials say contradict the July trade agreement terms
• European Parliament member Bernd Lange, chair of INTA on EU-US trade relations, announced the suspension following Trump's remarks at the World Economic Forum in Davos
• The approval process will remain on hold until the U.S. provides clarity on threats linking Greenland acquisition ambitions to European tariffs

Archer Aviation has partnered with Serbia as the country's preferred electric vertical take-off and landing aircraft partner, with Serbia having the option to purchase up to 25 Midnight aircraft. The agreement, signed at the World Economic Forum in Davos, expands Archer's international presence as the company pursues public-private partnerships in global markets. Archer will serve as the official air taxi partner for EXPO 2027 Belgrade.

• Serbia will have the option to purchase an initial fleet with a commitment of up to 25 Midnight aircraft, adding to Archer's order book
• The partnership builds on Archer's international expansion into UAE, Saudi Arabia, India, Japan, and South Korea, following its selection as air-taxi provider for the Los Angeles 2028 Games
• Archer will explore development work with Serbia on industrialization, including rare-earth magnets and critical minerals for batteries

US stocks rebounded on Wednesday after President Trump told the World Economic Forum he would not use military force to acquire Greenland, easing geopolitical tensions. The S&P 500 rose 0.4%, the Dow gained 140 points (0.3%), and the Nasdaq advanced 0.3%, recovering from Tuesday's sharp selloff. Treasury yields eased and the dollar stabilized as investors scaled back the 'sell America' trade that had accelerated the previous day.

• Trump's explicit statement ruling out military force for Greenland reversed Tuesday's market rout, which marked the worst daily performance for major indices since October 10 and pushed S&P 500 and Nasdaq into negative territory for 2026.
• The 10-year Treasury yield retreated after briefly topping 4.3% on Tuesday, as demand for US government bonds returned and the dollar pared losses against major currencies.
• Trade tensions remain unresolved despite market stabilization, with European leaders threatening retaliation through the EU's Anti-Coercion Instrument and JPMorgan warning that 'America First' policies are driving persistent diversification away from dollar assets.

President Trump signed an executive order aimed at blocking Wall Street firms from purchasing single-family homes to increase housing affordability for American families. The order gives federal agencies 60 days to recommend policies governing institutional purchases and directs antitrust reviews of large-scale acquisitions. However, legal analysts note that a nationwide ban would require congressional legislation, not just executive action.

• The order instructs the Justice Department and FTC to review institutional purchases for antitrust violations and prioritize enforcement against 'coordinated vacancy and pricing strategies' by large investors
• Large institutional investors (owning 100+ homes) control less than 1% of all single-family homes nationwide and just 2-3% of single-family rentals, though ownership is concentrated in Sun Belt markets
• In 22 US counties concentrated in Dallas, Houston, Atlanta, Phoenix and other metro areas, institutional investors own between 5-10% of housing stock, creating outsized local market impact

Ripple CEO Brad Garlinghouse predicts cryptocurrency markets will reach all-time highs in 2026, citing favorable regulatory changes and growing institutional interest. Bitcoin currently trades around $89,000 after hitting $126,000 in October 2025, while Ripple's XRP token trades at approximately $1.90. Garlinghouse believes institutional adoption is not yet fully priced into the market.

• Ripple won its legal battle against the SEC in March 2025 after spending $150 million fighting allegations related to $1.3 billion raised through XRP sales
• The GENIUS Act passed in June 2025 established regulatory guardrails including full reserve backing and monthly audits for stablecoins, which Garlinghouse expects to 'scale in a very big way'
• Standard Chartered analysts project XRP could reach $8 in 2026 and $12.50 by 2028, while Garlinghouse sees a 'really nice opportunity to grow for the next 10 years' for cryptocurrencies overall

US stock futures opened modestly lower on Wednesday as investors awaited President Trump's speech at the World Economic Forum in Davos. This followed a sharp sell-off on Tuesday where the Dow fell 871 points (1.8%), the S&P 500 dropped 2.1%, and the Nasdaq plunged 2.4%, wiping out all year-to-date gains for the Nasdaq and S&P 500.

• Tuesday's decline erased all 2025 gains for the Nasdaq and S&P 500, though the Dow, Russell 2000, and Equal-Weight S&P remain positive year-to-date
• The sell-off was driven by 'headline risk' surrounding Trump's tariff threats over Greenland rather than fundamental economic changes
• Market focus centers on Trump's Davos speech at 2pm European time, with investors hoping for a conciliatory tone rather than hawkish rhetoric that could further spook markets

Michael Burry, known for predicting the 2008 financial crisis, is warning of an impending recession based on the prolonged 2-10 Treasury yield curve inversion from 2022-2024, a pattern that has historically only preceded recessions. Unlike previous decades, today's inflationary environment limits traditional easy-money policy responses that previously helped counter economic downturns. The article suggests Burry's timing may be more accurate this time, as structural economic conditions differ significantly from the 2010s.

• The 2-10 Treasury spread remained inverted from 2022-2024, followed by rapid steepening—a pattern that has only preceded recessions historically
• Current inflationary pressures prevent central banks from using easy-money policies and rate cuts that successfully countered recessions in the 2010s
• Elevated long-duration bond yields and rising annual interest payments for the U.S. government could force market intervention that triggers rather than prevents the next recession

US Treasury Secretary Scott Bessent urged markets and European leaders to remain calm ahead of President Trump's World Economic Forum address at Davos, following market turmoil sparked by Trump's tariff threats against eight European countries opposing his Greenland acquisition push. Markets responded negatively despite reassurances, with the S&P 500 falling 2.1%, the dollar sliding to a two-week low, and Treasury yields climbing toward critical thresholds.

• Major US indices suffered their biggest single-day declines in three months on Tuesday, with the S&P 500 down 2.1%, Dow down 1.8%, and Nasdaq falling 2.4%
• Trump announced 10% tariffs on eight European nations, prompting the EU to signal potential retaliatory tariffs on $109 billion of US goods
• Treasury officials fear European institutions may divest from US assets, with a Danish pension fund already announcing plans to exit US government bonds, potentially destabilizing American borrowing costs

Swiss National Bank Chairman Martin Schlegel emphasized the critical importance of Federal Reserve independence amid a criminal probe of Fed Chair Jerome Powell by the Trump administration. The SNB joined other central banks in supporting Powell, who faces pressure from President Trump to cut interest rates. Schlegel warned that central bank independence is essential for controlling inflation and maintaining price stability.

• The Swiss franc appreciated 14.5% against the dollar in 2024, its strongest annual gain since 2002, driven by global trade tensions and Trump's tariff policies
• Dollar holdings represent about 36% of the SNB's 765 billion francs ($966 billion) in foreign currency reserves, with recent franc strength reducing the value of these dollar-denominated assets
• The SNB has no plans to change its 1,040 metric tons of gold holdings, which generated a 36.3-billion-franc profit last year, and remains unconcerned about potential negative inflation readings in coming months

Last week's earnings revealed a sharp divide in investor priorities: major banks beat earnings estimates but saw stocks fall 3-5% due to regulatory concerns, rising costs, and anticipated Fed rate cuts. In contrast, Taiwan Semiconductor's announcement of $52-56 billion in 2026 capex (up from $41 billion) and 35% profit growth reignited confidence in AI demand, lifting chip stocks 3-8%. The market is rewarding credible growth narratives over stable but uninspiring results.

• Banks like JPMorgan, Wells Fargo, and Citigroup beat earnings but declined as investors focused on future margin compression from expected rate cuts and JPMorgan's expense jump to $105 billion (from $96 billion)
• TSMC's capex increase and CEO's direct validation that 'AI is real' triggered immediate rallies: TSMC +6%, ASML +7-8%, and Nvidia +3.2%, signaling sustained AI infrastructure demand
• Investment banks outperformed traditional banks, with Morgan Stanley's investment banking fees up 47% and Goldman Sachs posting record trading revenue, highlighting that exposure to growth-driven capital markets activity commands a premium

Major Wall Street banks are pushing back on President Trump's affordability proposals, including credit card interest rate caps and 401(k) borrowing for home down payments, while suggesting alternatives like encouraging retirement savings transfers. The discussions are taking place ahead of mid-term elections where high living costs remain a key voter concern. However, sources indicate none of the proposed ideas are likely to substantially impact affordability before the November elections.

• Banks oppose credit card rate caps, warning they would reduce credit availability and force lenders to cut credit lines to limit losses
• Alternative proposals include letting parents use 401(k) funds for children's home purchases and allowing tax-free home sales for older Americans, though housing supply remains the core issue
• Citigroup CEO Jane Fraser publicly stated that while Trump is 'right in focusing on affordability,' capping credit card rates 'would not be good for the U.S. economy'