Notable market news this past week (01-Feb-26)
Here is the Skeptivest roundup of the latest market headlines for the week
🌍 Fed pauses rates, Trump’s nomination of Kevin Warsh as Fed Chair sparks market volatility
Fed holds rates steady for first time since July: The Fed held its benchmark interest rate unchanged at 3.50% – 3.75% at its January policy meeting, marking the first pause after three consecutive rate cuts late last year and aligning with market expectations. The Fed cited ongoing inflationary pressures above target and continued economic resilience – including a stabilising job market – as reasons for maintaining the current policy stance. The decision was not unanimous, with two FOMC officials voting in favour of a quarter-point cut, reflecting differing views on economic conditions. Markets reacted with relatively muted moves as investors had largely priced in the pause, and futures pricing suggests that for now markets is not aggressively pricing in immediate, continued cuts.
Trump’s pick of new Fed chair hit gold and silver markets, spurring volatility: Markets interpreted Kevin Warsh as a more institutionally credible and potentially less dovish leader than the markets expectation of a politically influenced rate-cut advocate, which led to strength in the US dollar and treasury yields, sharp declines in gold and silver prices, and broad risk-off shifts in equities, particularly tech and precious metals sectors. Spot gold finished the week near US$4900/oz after retreating from its recent peak near US$5600/oz, while silver also corrected significantly, closing the week near US$85/oz after hitting highs above $120/oz. The reaction reflected a repricing of monetary policy expectations – with markets adjusting away from aggressive rate-cut pricing toward a scenario of sustained policy credibility and tighter financial conditions.
☕️ Quick fire happenings to note
🌏 Global macro
- Iran’s economic crisis spurs mass protests and escalating US military tensions, dragging on markets: Intensifying geopolitical tensions surrounding Iran last week drove a notable risk premium in energy markets, with Brent Crude briefly surging above US$70/barrel – its highest levels in months – as investors repriced the possibility of supply disruption amid fears of US military action or retaliatory disruption around the Strait of Hormuz, a critical oil transit chokepoint.
- Indonesia’s stock market came under heavy pressure after MSCI’s emerging-market concerns: Indonesian stocks plunged with benchmark Jakarta Composite Index (JCI) tumbling as much as 10% in a single session , triggering a market rout and a 30-minute trading halt after MSCI raised concerns about market investability and transparency. The index provider announced a freeze on index changes and warning that insufficient improvements could lead to a downgrade from Emerging Market to Frontier Market status. This triggered one of the steepest sell-offs in recent years for the Jakarta Composite Index (JCI), with sharp declines prompting resignations among top financial regulators and exchanges as authorities pledged reforms to improve transparency and restore confidence.
🏦 Individual stocks/companies
- SanDisk Corp (+21.06% past 5D) shares continued its impressive run after reporting its financial results: SanDisk’s fiscal second quarter 2026 performance significantly outpaced expectations, with revenue rising sharply and earnings per share beating forecasts by a wide margin, driven by robust demand for memory and AI-related data storage solutions. Following the earnings beat and exceptionally strong guidance for the next quarter, SanDisk shares surged strongly as markets remain optimistic about its positioning in the tight NAND flash memory market and booming AI infrastructure demand.
- Microsoft Corp (-7.47% past 5D) shares came under pressure despite reporting stronger-than-expected fiscal Q2 2026 results: The company’s earnings beat consensus, with revenue rising about 17% y/y to ~US$81.3 billion and cloud revenue topping US$50 billion. However, investor focus shifted to signs of slowing Azure growth and record-high AI-related capital expenditure, prompting a sharp sell-off that saw the stock fall sharply and drag on broader indices, as markets weighed the pace of AI monetisation against heavy spending. While analysts acknowledge the long-term growth potential driven by cloud and AI demand, near-term volatility persisted as sentiment turned cautious on valuation and spending concerns.
- Southwest Airlines Co (+14.23% past 5D) surged after forecasting solid 2026 profits: The airline’s fourth-quarter 2025 earnings beat and upbeat 2026 guidance catapulted its shares by 19% on record trading volume, as optimism around profit growth gained traction. The company reported adjusted EPS of US$0.58 and forecast at least US$4.00 in EPS for 2026 – implying a 330% increase y/y, beating analysts’ expectations and underscored the early success of its transformational strategy including assigned seating and ancillary fees.
🇸🇬 Singapore related
- Singapore’s monetary policy remains unchanged for the third straight quarter: As widely anticipated by analysts, the MAS kept its monetary policy settings unchanged in its January policy review, maintaining the prevailing rate of appreciation of the Singapore dollar nominal effective exchange rate ($SNEER) band with no adjustment to the width or midpoint. However, MAS raised its inflation forecasts for 2026, projecting both core and headline inflation to be between 1% - 2%, reflecting firmer economic growth and price pressures after Singapore outperformed growth expectations in 2025. The decision signals MAS’ confidence in the current stance while leaving the door open for future calibration if inflation or growth risks materialise.
