Global Markets React to Fed Rate Decision, Gold Surge

The article discusses the performance of Asia-Pacific markets on a particular Thursday, with a focus on the impact of the US Federal Reserve's decision to keep interest rates steady. Spot gold prices hit a record high above $5,500 per ounce, driven by the Fed's decision. Asia-Pacific markets traded mixed, with some indices rising and others falling. The Jakarta Composite was under pressure due to a potential downgrade by MSCI to frontier-market status, while Indonesia's currency, the rupiah, weakened marginally. Other market movers included Samsung Electronics' record profits and the Singapore central bank's decision to leave monetary policy unchanged.

The US Federal Reserve kept interest rates unchanged as expected, but the focus was on Chair Jerome Powell's comments on the independence of the central bank and the potential impact of politics on monetary policy. The S&P 500 briefly surpassed 7,000 but closed flat. Earnings reports from Meta Platforms, Microsoft, and Tesla were mixed, with investors being selective in their response. Nvidia's AI boom has benefited ASML, a Dutch semiconductor equipment firm, while SK Hynix beat Samsung Electronics in operating profit for the first time. The US dollar strengthened after Treasury Secretary denied reports of currency market intervention.

The stock market saw mixed movements on Wednesday, January 28, 2026, as investors reacted to the Federal Reserve's decision to hold interest rates steady and awaited earnings reports from major tech firms. S&P 500 futures were little changed, while Dow Jones Industrial Average futures fell 0.1% and Nasdaq 100 futures rose 0.3%. Spot gold surged past $5,500, driven by a weakening US dollar. Meta Platforms' strong earnings forecast boosted its shares by 7%, while Microsoft's soft guidance led to a 6% decline. Tesla's shares rose 1% after beating expectations. The Fed's statement indicated a solid pace of economic activity, but futures trading suggested two quarter-point rate cuts by the end of 2026. Investors are now looking to Apple's earnings report and other economic data for further direction.

The article discusses the recent surge in gold prices, which has eclipsed many full-year price targets and forced analysts to upgrade their outlooks. The price of gold has risen by 28% in the first four weeks of 2026, driven by investor concerns over US dollar assets and policy uncertainty under President Donald Trump. Some Chinese funds have halted new purchases due to the rapid price increase, while Hong Kong's first gold exchange-traded fund has surged on its debut. The article highlights the speed and magnitude of the gold price rally, which has left strategists scrambling to react.