Market Insights: Key Financial Developments from January 30, 2026

Overnight News Summary from Sina Finance: January 30, 2026

1. Market Overview:

• Closing on January 30: US stocks closed mixed, with Microsoft experiencing a significant drop of 10%, dragging the Nasdaq lower. As of January 30, early morning Beijing time, US stock indices showed varied results. Traders were processing earnings reports from technology companies and the Federal Reserve’s interest rate decisions. Apple’s earnings report is expected after the close. The Dow Jones, Nasdaq, and S&P 500 indices all fell, with Microsoft plunging nearly 10% due to slowing cloud business growth and weak guidance, which limited market gains. Conversely, Meta saw a 10.4% increase in stock price after surpassing sales forecasts. Investors are weighing the impact of Federal Reserve monetary policy, leading to lowered expectations for rate cuts. Additionally, negotiations between Trump and Democrats to avert a government shutdown approached a compromise but ultimately did not result in an agreement. Precious metal prices experienced significant volatility, with spot silver and gold rising and then falling during trading.
• Top 20 US Stocks by Trading Volume on January 30: Microsoft lost nearly $360 billion in market value after falling 9.99% following a disappointing earnings report. Factors contributing to this decline included difficulties in justifying spending plans, slowing cloud growth, and reliance on a small number of large customers. Meta Platforms increased by 10.40%, adding $176 billion to its market capitalization, as investors welcomed its AI investments. Tesla dropped 3.45%, despite exceeding earnings expectations and announcing product line adjustments to support its robotics business. Apple rose 0.72%, completing its acquisition of an Israeli AI startup and reporting revenue above expectations. Other companies like SanDisk and ExxonMobil showed mixed performances, with some experiencing drops due to earnings guidance and valuation concerns.
• Performance of Popular Chinese Stocks on January 30: The Nasdaq China Golden Dragon Index rose by 0.35% on January 30, with mixed results among popular Chinese stocks. Stocks such as Beike, Li Auto, and NIO saw gains, with NIO increasing by 3.92%. Conversely, TSMC, Alibaba, and United Microelectronics fell, with United Microelectronics dropping 7.16%. The US stock market closed mixed, with Microsoft down approximately 10%, under pressure from tech earnings reports and the Federal Reserve’s interest rate decisions. The Dow Jones fell by 0.11%, the Nasdaq by 0.72%, and the S&P 500 by 0.13%.
• International Oil Prices Surge Over 3%: Oil prices increased by more than 3% on Thursday as President Trump considered military action against Iran, an OPEC member. Brent crude for March delivery rose by $2.31, or 3.38%, closing at $70.71 per barrel. Meanwhile, West Texas Intermediate crude for March gained $2.21, or 3.50%, reaching $65.42 per barrel. Sources indicated that Trump was weighing targeted strikes against Iranian security forces and leaders to inspire anti-government protesters, following a crackdown that resulted in thousands of deaths earlier this month. The oil market is closely monitoring developments to assess the risk of supply disruptions, with Trump also deploying aircraft carrier strike groups and issuing warnings.
• Spot Gold Rebounds After Significant Drop: Spot gold prices rebounded at the end of US trading, recovering over $300 from a record single-day drop, closing at $5418 per ounce. Earlier in the session, gold hit a historic high of $5596.7 per ounce, only to fall to $5105 during US trading, resulting in nearly $500 of intraday volatility. During the decline, some minute candlesticks showed swings exceeding $100, marking a record single-day drop of $319. Notably, the day before, gold had just recorded a $240 gain, highlighting extreme market volatility.
• European Stocks Erase Gains: Concerns about Microsoft’s performance raised worries among investors regarding technology companies’ investments in AI, causing European stocks to erase gains. The Stoxx Europe 600 Index closed down by 0.2% after rising 0.8% earlier in the day, with technology stocks suffering the most, including a 16% drop in SAP’s stock. Microsoft fell by 12%, while Nokia dropped by 9.4%, though ABB shares increased by 8.5%. According to a strategy chief at Credit Suisse, this is a selective investment market. After reaching a new high in January, European benchmark stock indices have pulled back as investors penalize companies that fail to meet earnings expectations.

2. Macroeconomic Updates:

• US Senate Fails to Pass Funding Bill: The US government is facing the possibility of a partial shutdown again as the Senate did not secure enough votes to pass a funding bill. The funding for most federal departments, including the Department of Homeland Security, is set to run out on January 30. The Senate requires a 60-vote majority for the funding bill to pass, with 53 Republican seats and 45 Democratic seats, plus two independent senators aligning with the Democrats. Senate Democratic Leader Schumer stated that Democrats would block any bill containing Homeland Security funding due to recent incidents of law enforcement fatalities.
• Trump Plans to Reopen All Commercial Airspace Over Venezuela: After a call with Venezuela’s interim president, Trump ordered the reopening of all commercial airspace over Venezuela as part of a move to restore relations following the capture of Maduro. In a Cabinet meeting, he stated that US citizens would soon be able to travel safely to Venezuela. He directed the Pentagon and the Department of Transportation to finalize related adjustments by the end of the day, and the interim president reported progress in improving domestic security.
• Trump to Announce Federal Reserve Chair Nominee Next Week: President Trump announced on Thursday that he plans to reveal his nominee to replace Federal Reserve Chair Powell next week. The Federal Reserve left interest rates unchanged on Wednesday, having cut rates three times in 2025. Trump advocates for significant rate reductions. Currently, there are four candidates being considered to succeed Powell, all of whom agree on the need to lower rates. Noteworthy candidates include Rick Rieder from BlackRock, who has never held a government or Federal Reserve position, and former Fed Governor Warsh, who has called for changes to central bank policies.
• Who Will Be the Next Federal Reserve Chair? Trump indicated that the answer will be revealed next week. He expressed his desire for the new chair to lower interest rates, following his frustration over the Fed’s decision to maintain rates. Trump and his allies have pressured the Fed and its chair, Powell, for months. The nomination process for the chosen candidate may face challenges in the Senate, as some Republican senators have indicated they will block any nominee until investigations conclude.
• CFTC Chair to Establish New Rules for Prediction Markets: The chair of the Commodity Futures Trading Commission (CFTC) announced on Thursday plans to establish new regulations for the multi-billion dollar prediction market industry. CFTC Chair Michael Selig stated that it is time to create clear rules that inform the public of the CFTC’s support for legal innovations in this market and that he will continue to advocate for the responsible development of event contract markets.
• EU Designates Iran’s Revolutionary Guard as a Terrorist Organization: On January 29, the EU’s High Representative for Foreign Affairs and Security Policy announced that EU foreign ministers took decisive action to include Iran’s Revolutionary Guard in their terrorism list.
• Zelensky Announces Ceasefire for Energy Facilities: Zelensky stated that a ceasefire regarding energy infrastructure would commence on the night of January 29. Earlier, Trump requested Russian President Putin refrain from firing on various towns, including Kyiv, for a week due to cold weather, claiming that Putin had agreed to this. However, there has been no response from the Russian side to date.
• Relative of Israeli Security Chief Suspected of Smuggling into Gaza: On January 29, an Israeli court approved the release of information regarding a relative of the Israeli Security Agency (Shin Bet) chief, who is suspected of being involved in smuggling goods into Gaza. The Israeli police and Shin Bet are continuing their investigation, with an indictment expected next week.

3. Company News:

• Apple Reports Record Q4 Earnings: On January 29, Apple released its Q1 2026 earnings report, with all core metrics reaching historic highs. Total revenue, net profit, and diluted earnings per share increased by 16%, 15.9%, and 18.3% year-over-year, exceeding market expectations, with post-market shares rising over 3%. The gross margin was 48.2%, and R&D expenditures rose by 31.7% to $1.317 billion. Operating cash flow was strong, returning nearly $32 billion to shareholders. The financial situation is solid, with capital expenditures declining. The iPhone remains a core growth driver, while service revenue exceeded $30 billion. Mac revenue declined, iPad sales increased, and wearables saw slight decreases. The Greater China region led revenue growth, followed by other Asia-Pacific regions.
• Microsoft’s Market Value Drops by $357 Billion: After releasing disappointing earnings, Microsoft’s stock fell approximately 10%, marking the largest single-day drop since March 2020, with its market value decreasing to $3.22 trillion. Investors were dissatisfied with the growth rates of Azure cloud services and other cloud revenue streams, as well as the revenue and implied operating margins from its “More Personal Computing” segment. Microsoft’s CFO stated that better performance could be achieved by reallocating more data center infrastructure.
• Amazon Considering Investment in OpenAI: Sources indicate that Amazon is negotiating a potential investment of up to $50 billion in OpenAI, with direct involvement from both companies’ CEOs. Earlier in 2023, Amazon invested billions in OpenAI’s competitor, Anthropic. While details of the negotiation are still pending, the total investment amount may be subject to change, with a list of investment terms expected to be signed in the coming weeks. OpenAI is also in talks with multiple investors, aiming for a funding round of approximately $100 billion.
• Apple Completes Acquisition of Israeli AI Startup Q.ai: Apple confirmed on Thursday that it has completed its acquisition of Israeli AI startup Q.ai, although the financial details remain undisclosed. Q.ai operates discreetly and has not publicly released products, focusing on audio-related R&D. Its CEO, Aviad Maizels, previously sold PrimeSense to Apple, whose technology is now used in Apple’s Face ID. Investment platforms indicate that Q.ai is developing “communication enhancement technology.” Although Apple’s AirPods have undergone AI upgrades, some AI projects are experiencing delays.
• Decline of the US Dollar Seen as “De-Americanization” Signal: Federated Hermes Inc., managing $900 billion in assets, views the recent drop in the US dollar as a sign that international investors are increasing their hedging against devaluation rather than selling US assets. The Bloomberg dollar spot index fell by about 2% in January, influenced by factors including trade wars and rumors of yen interventions. According to John Sidawi, a senior fixed income portfolio manager at the firm, foreign investors are hedging US positions, which is one of the key factors for the continued bearish outlook on the dollar.
• SpaceX Discusses Merger with xAI: Elon Musk’s SpaceX is in discussions to merge with AI company xAI ahead of a potential IPO. If the merger occurs, Musk’s rocket business, Starlink satellites, social media platform X, and Grok AI chatbot would be consolidated into one entity. The shares of xAI would be exchanged for SpaceX shares, and two legal entities have already been established in Nevada to facilitate the transaction, listing SpaceX and its CFO as management members.
• Waymo Launches Passenger Shuttle Service at San Francisco Airport: Waymo announced the launch of its autonomous shuttle service at San Francisco International Airport, initially available to select users, with plans to expand to all users in the coming months. The service will initially operate from the airport’s rental car center, with additional pickup and drop-off points planned. Waymo had previously commenced autonomous passenger service on highways late last year.
• Airbus Prepares to Sell Larger A220 Jet: Airbus is preparing to offer a larger version of the A220 regional jet to airlines and leasing companies, seeking sufficient pre-orders to advance the development of the A220-500, which could be announced as early as the July Farnborough Airshow. 2026 is expected to be a significant year for the A220, pending board approval for the development. The A220 project had previously faced distractions due to production and cost issues.
• IBM Aims to Help Clients Navigate Complex AI Options: As clients integrate AI into more areas of their businesses, they face new challenges related to tracking AI developments. IBM’s CFO stated that the primary barrier to AI deployment today is not cost but rather complexity and expertise. Companies need to manage billions of new applications and AI agents, and IBM believes it can address this need by providing consulting, software, and infrastructure services. AI is becoming a key driver of IBM’s business, with Q4 revenue increasing by 12% and the AI business exceeding $12.5 billion.
• Blackstone Prepares for Historic IPO Lineup: Blackstone Group is reportedly preparing to launch one of the largest IPO project lineups in history, according to an interview with President Jonathan Gray. He believes that the current market conditions, characterized by strong liquidity and high receptiveness, support the company’s push for public offerings of its long-held investments.
• Blackstone Reports Profit Growth: Blackstone reported an unexpected increase in distributable earnings and a resurgence in transaction activity, with the president stating the company has reached “escape velocity.” For the fourth quarter, distributable earnings rose 3% to $2.24 billion, exceeding analysts’ expectations. The net gain from investment exits soared by 59%, with accompanying equity shares increasing by 15%.

4. Comments:

• Gold Price Volatility and Market Correction: On January 29, spot gold prices experienced significant volatility, soaring above $5500 per ounce before sharply correcting nearly 5% within minutes. This correction may be attributed to technical sell-offs and forced liquidations due to an overheated market. The reaction affected various markets, including precious metals, oil, and Bitcoin, leading to substantial losses for short-term investors, while long-term investors viewed it as an opportunity. Despite the volatility, the long-term bullish trend for gold remains intact, with several institutions projecting price targets of $5700 to $6000 per ounce.
• Gold Prices Retreat from $5500 as Profit-Taking Curbs Momentum: Gold prices recorded their largest decline since October of the previous year. The price initially breached $5500 before profit-taking led to a dramatic drop, exacerbated by a rebound in the dollar. Gold prices fell by as much as 5.7% at one point, while silver experienced an 8.4% decline. This month, gold prices surged nearly 20% due to geopolitical tensions and concerns over the Federal Reserve’s independence.
• Upcoming Midterm Elections and Trump’s Strategy: As the November midterm elections approach, Trump’s advisers believe he needs to focus on cost-of-living issues to help the Republican Party maintain control of Congress. However, Trump often strays off-topic, easily distracted by notions of “victory,” and tends to deny the existence of pressing problems, such as rising prices. His team plans intensive campaigning to persuade voters, but their strategy lacks detailed policy outlines.
• Risks of US Government Shutdown Loom: Trump and Senate Democrats are nearing a deal to avoid a government shutdown. Senate Majority Leader John Thune expressed optimism about ongoing negotiations. A White House official confirmed that Trump is cooperating with bipartisan lawmakers to avert a shutdown. Although no agreement has been finalized, a draft proposal is forming that would provide temporary transitional funding for the Department of Homeland Security and extend other agency funding until September 30.
• Macro Observer: Challenges in Exiting a Bull Market: The recent surge in precious metals, particularly gold and silver, has raised concerns about sustainability. Historical data supports gold’s strong performance, but market observers question the pace of its rise. With gold’s price nearing a 50-year high, a correction could be imminent. As upward momentum accelerates, the potential for a sudden downturn increases, making the current trajectory difficult to maintain.
• Kremlin on Territorial Issues in Russia-Ukraine Negotiations: According to Kremlin foreign policy advisor Yuri Ushakov, territorial disputes remain a central topic in Russia-Ukraine negotiations, with many other issues on the agenda. Currently, Russia has not agreed to any security guarantees for Ukraine, indicating significant divisions on critical matters.
• Countries Seek New Paths to Hedge Against US Trade Risks: While US allies find it challenging to disengage from military and technological dependence on the US, they are exploring new trade options in response to Trump’s tariff policies. Recent bilateral agreements are accelerating the restructuring of global trade, aiming to “de-risk” economic ties with the US. The global economy is adapting to these changes, with businesses taking proactive measures.
• Dutch Pension Fund PME Considers Europe Over US: Discontent with US policies, the Dutch pension fund PME plans to shift its investment focus towards European technology sectors. PME’s chairman expressed that the US is “no longer reliable,” citing Trump’s tariff policies and threats against existing agreements. While acknowledging the importance of the US economy, PME believes investing in Europe is a prudent move to retain talent and enhance independence.
• US Faces Growing Risk of Power Outages: The North American Electric Reliability Corporation (NERC) warns that the changing power supply structure and increasing winter demand heighten the risk of power outages in the US. Their long-term assessment indicates that the central Atlantic, Midwest, Northeast, and Texas may face significant electricity shortages before the end of the decade.
• US 7-Year Treasury Auction Yield at 4.018%: The US Treasury issued $44 billion in 7-year bonds, with a winning yield of 4.018%, above the average of the previous six auctions at 3.912%. The bid-to-cover ratio was 2.45, lower than the average of 2.52. Indirect bidders received 66.9% of the allocation, higher than the average of 61.8%, while direct bidders accounted for 22.2%, below the average of 28.0%.
• Opinion Summary: US Treasuries as Risk Assets: Currently, US Treasuries have lost their dual special attributes and have become risk assets. They no longer serve effectively as diversification options or recession hedges, diminishing in appeal against investments with more attractive returns. Following 2022, hedge fund returns have fluctuated alongside treasuries. Moreover, the increasing surge in gold and silver prices may indicate an impending correction.
• Brent Oil Prices Surge to New Highs: Brent crude oil futures closed above $70 a barrel for the first time since July, driven by President Trump’s warnings regarding Iran. Oil prices rose 3.4% on Thursday, with WTI crude surpassing $65. The risk of military conflict and disruptions to Iranian oil exports and key transport routes has pushed prices higher, as Trump indicated that US vessels are prepared for action.
• European Bond Market: Safe-Haven Demand Drives UK Bonds Up: Amidst falling US stock markets and increased volatility, demand for safe-haven assets grew, leading to rises in UK, German, and other European government bonds. UK bonds performed particularly well, with the 5-year bond yield falling by 5 basis points. German bonds also saw an increase across the board, with the 10-year yield dropping 3 basis points.