📈 Global Market Brief: January 29, 2026 Monetary Policy and US Equities 🇺🇸 The **Federal Reserve** held its benchmark federal funds rate steady this week, maintaining the target range at **3.5% to 3.75%**. This pause follows a series of three consecutive rate cuts in late 2025. The decision was largely expected, although two committee members dissented, advocating for a further **25-basis-point** cut. The Fed acknowledged that economic activity has been expanding at a **solid pace** and the labor market has shown signs of stabilization. Despite the pause, US equities have been robust. The **S&P 500** index briefly touched the **7,000 level** for the first time, reaching a new all-time high. The tech-heavy **Nasdaq** finished up **0.3%** on Wednesday, while the S&P 500 and Dow Jones Industrial Average ended fractionally higher and lower, respectively. The yield on the benchmark **10-year Treasury** was little changed, holding around **4.25%**. Market expectations, as tracked by the CME FedWatch tool, currently anticipate the first rate cut of 2026 to occur in **June**. Global Growth and Currency Outlook 🌍 Global growth forecasts for 2026 remain constructive, with projections suggesting moderate expansion. Consensus estimates put US growth at **2.7%**, the Euro area at **1.3%**, and China at **4.8%**. The **US Dollar Index** (DXY), which tracks the greenback against a basket of currencies, was slightly higher at **96.39** following recent four-year lows. Strategists view the dollar as likely to weaken further throughout the year as the US macro backdrop erodes its rich valuation. In Asia, the **Japan Nikkei 225** leads global indices with a year-to-date gain of **5.1%** through January 26. The **Hong Kong Hang Seng** also posted a strong start with a **4.4%** year-to-date gain. Commodities: Oil, Gold, and Silver 🥇 Crude oil prices are on a generally bullish trend in the short term, despite long-term forecasts of declining prices due to surplus supply. **West Texas Intermediate (WTI)** crude futures recently rose by **1.5%** to around **$63.35** a barrel. This gain is supported by an unexpected decline in US crude inventories, which suggests stronger-than-forecasted demand. Safe-haven assets continue their powerful rally. **Gold futures** have surpassed **$5,300** an ounce and were recently trading above **$5,385**. **Silver futures** surged more than **10%**, hitting an all-time high near **$117** an ounce. Geopolitical and Sector Risks geopolitics ⚔️ Geopolitical risks are driving strategic concerns, particularly in trade and technology. A new era of **New Economic Nationalism** is taking hold, with governments globally adopting interventionist industrial strategies. Tensions are rising between the **European Union and China** over industrial overcapacity, with a focus extending beyond Electric Vehicles to include wind components, solar, and mature node semiconductors. In the US, political friction around central bank independence continues, with the Fed defying calls for more aggressive rate cuts amidst political pressure. The global shift toward **critical mineral alliances** and the rise of **techno-nationalism** in AI and digital sovereignty are key long-term risks for corporate planning and supply chain resilience. The **Artificial Intelligence (AI)** sector remains a significant driver of investment, with strong corporate balance sheets supporting credit markets for data center and AI-related capital expenditure. Investors are closely watching upcoming quarterly results from megacap tech firms like Microsoft, Meta Platforms, and Tesla.