Market snapshot: a big week ahead for Wall Street

Investors hope that results from big American companies due in the coming days will justify high valuation multiples. ii's head of markets sets the scene.

26th January 2026 08:21

by Richard Hunter from interactive investor

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Currency markets have moved centre stage as equity investors retreated after a bruising and volatile week which brough geopolitical concerns back to the top of the agenda.

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The main US indices were mixed with little net movement, although there were signs that the mega cap trade could be regaining some momentum after a difficult start to the year. Advanced Micro Devices Inc (NASDAQ:AMD) and NVIDIA Corp (NASDAQ:NVDA) posted gains, with the latter rumoured to be visiting China in the coming days. Intel was a drag on the market however, as the shares tumbled by more than 15% after revealing a disappointing first-quarter outlook.

Tech stocks will remain in sharp focus this week as four of the “Magnificent Seven” report, in the form of Tesla Inc (NASDAQ:TSLA), Microsoft Corp (NASDAQ:MSFT), Meta Platforms Inc Class A (NASDAQ:META) and Apple Inc (NASDAQ:AAPL). Elsewhere, the earnings season gets into full swing with additional updates from the likes of Boeing Co (NYSE:BA), General Motors Co (NYSE:GM), International Business Machines Corp (NYSE:IBM), Caterpillar Inc (NYSE:CAT), Exxon Mobil Corp (NYSE:XOM) and Chevron Corp (NYSE:CVX).

On the economic agenda is the latest interest rate decision from the Federal Reserve, where no change is expected, and where the main concern over recent weeks has been less about the US economy and rather more around the strength and validity of the central bank’s independence.

In the meantime, leading into the last trading week of January, the main indices have yet to display many signs of optimism, with marginal gains of 2.2%, 1% and 1.1% for the Dow Jones, S&P500 and Nasdaq respectively.

Asian markets news was dominated by the Japanese yen, which surged against the US dollar, leading to a decline in the benchmark Nikkei 225 index, given the constituents’ exposure to exporters. A stronger yen makes goods less attractive to overseas buyers while also weighing on the value of international earnings, and as an example Toyota Motor fell by more than 3% on the back of the currency strength. The move was exacerbated by speculation that market intervention by the Bank of Japan was imminent, which squeezed out a number of traders who had a short position in the yen.

Haven investments are still in demand given the volatile backdrop, and silver posted a further 6% gain as a result. Gold, meanwhile breached $5,000 per ounce for the first time, taking its gain since the beginning of last year to 94% with no immediate headwinds in sight to prevent further progress for the precious metal.

The FTSE100 may not quite have the allure of gold, but its defensive qualities nonetheless remain a viable alternative for haven-seeking investors. Apart from the stable and established features of many of its constituents, a strong exposure to the resource and defence sectors has provided additional spice.

Indeed, the now familiar sight of opening strength in the share prices of Endeavour Mining (LSE:EDV) and Fresnillo (LSE:FRES) was accompanied by some buying interest in BAE Systems (LSE:BA.) and Babcock International Group (LSE:BAB), contributing to a gain of 2.4% for the premier index in the year so far.

This week will also see Lloyds Banking Group (LSE:LLOY) kicking off an unusually elongated reporting season for the banks, with HSBC Holdings (LSE:HSBA) not bringing down the curtain until the end of February. While the third quarter turned out to be one to forget for Lloyds, with the additional motor finance redress provision playing havoc with many of its key metrics, investors would be relieved to hear of a straightforward and no-frills set of numbers for the year as a whole. This could include some evidence of strengthening shareholder returns, with share buyback programmes and dividends in focus.

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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