North American Morning Briefing: Gold Tops $5,000 After New Tariff Threat

OPENING CALL

Stocks looked set to tumble Monday after Trump threatened to impose further tariffs on Canada and ahead of a Federal Reserve decision on interest rates this week.

Trade tensions were returning to the spotlight at the start of a big few days for earnings led by tech giants Apple, Meta Platforms and Microsoft.

Wednesday's rates decision is likely to be the biggest market-moving event of the week. The Fed is widely expected to hold rates.

Trump's threat to impose 100% tariffs on Canada if China makes a trade deal with the U.S.'s northern neighbor raises the spectre of another selloff.

"The Sell America trade is re-accelerating and global investors are quietly trimming U.S. exposure and will likely continue to do so," Bowersock Capital Partners said.

Fears are also growing that the federal government could shut down again . Senate Democrats are resisting supporting a funding bill for the Department of Homeland Security.

Meanwhile, gold futures topped $5,000 per troy ounce early Monday for the first time and the yen rallied after U.S. and Japanese authorities signaled they are ready to support the currency.

Stocks to Watch

American Airlines scrapped more than 1,500 flights after a winter storm over the weekend snarled parts of the U.S. Shares fell around 1% in premarket trading.

Enphase Energy plans to cut about 6% of its staff. The end of a federal tax credit has sapped demand for residential solar panels.

EssilorLuxottica and Meta Platforms face a lawsuit alleging infringement of patents for smartglasses technologies. Solos Technology is seeking billions of dollars in damages. EssilorLuxottica shares fell 1% in Paris.

Merck is no longer in discussions to buy Revolution Medicines because of an inability to agree on a price. RevMed's shares slid premarket.

The Trump administration plans to inject $1.6 billion into USA Rare Earth in return for a 10% stake, according to media reports. Shares soared in premarket trading. Other rare-earth companies, such as MP Materials, also rallied.

Ryanair raised its annual guidance, citing strong demand and earlier-than-expected Boeing deliveries. However, it posted a sharp drop in quarterly profit. Shares fell around 1.5%.

Sarepta Therapeutics said late Friday it will present results from a study of its Elevidys muscular dystrophy treatment this morning. Shares jumped 10% premarket.

Watch For:

Durable Goods for November

Today's Top Headlines/Must Reads:

- The American City That Found Itself at War With the U.S. Government

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- The World Economy Is Hooked on Government Debt

MARKET WRAPS

Forex:

The dollar stayed weak after reaching a four-month low against a basket of currencies overnight as the yen surged on speculation of coordinated U.S.-Japan interventions to support the currency.

The Federal Reserve Bank of New York contacted potential trading counterparties on Friday for rate checks.

OCBC said further downside for the dollar should be limited , supported by resilient U.S. data, especially against European majors such as the euro. The FX strategists remain neutral on the greenback.

The euro rose on the combination of reduced geopolitical risks and the potential for U.S.-Japan interventions to sell the dollar against the yen.

Friday's strong eurozone PMI surveys might also be providing some euro support, ING said.

HSBC said concerns about Japan's fiscal sustainability amid rising inflation and political changes were putting a risk premium on the yen.

Bonds:

Yields on Treasurys fell as investors sought safe-haven assets as the risk of another U.S. government shutdown grows and investors await the Fed decision.

Energy:

Oil prices fell slightly after rallying over the weekend on winter storms in the U.S. disrupting production.

ANG said strategic Chinese stockpiling was absorbing excess crude supply and supporting prices, though global surpluses will continue to rise.

Metals:

Gold was higher, holding above the $5,000/oz milestone it hit early Monday.

Phillip Nova said the precious metal may see some short-term volatility after a strong rally. But it added that geopolitical uncertainties and supply constraints continued to favor a constructive stance.

Maybank said the surge past the psychologically important $5,000/oz barrier was fueled by a slump in USD and underpinned by geopolitical concerns . The bank continues to keep an eye on geopolitical hotspots like Venezuela, Iran and Greenland.

Fresh tariff risks are also supporting gold. Trump has threatened 100% tariffs on Canadian goods if the country signs a trade deal with China.

OCBC analysts raised their forecasts for gold, now expecting the metal to reach $5,600/oz by end-2026.

Silver also hit a record high as USD weakness rippled across the metals complex.

   TODAY'S TOP HEADLINES 

Quantum-Computing Company IonQ to Buy Chip Maker SkyWater for $1.8 Billion

Quantum-computing company IonQ struck a deal to buy chip maker SkyWater Technology for $35 a share, or roughly $1.8 billion, executives told The Wall Street Journal.

IonQ Chairman and Chief Executive Officer Niccolo de Masi said the deal builds on enthusiasm from the Trump administration for semiconductor manufacturing and quantum-computing technology in the U.S.

Merck No Longer in Talks to Buy Revolution Medicines

Merck is no longer in discussions to buy biotech Revolution Medicines, according to people familiar with the matter.

Merck had recently been in talks to acquire RevMed in a deal that could have valued the cancer-drug biotech at around $30 billion.

How Intel Came Crashing Back to Earth After Its Trump Bump

When President Trump promised Intel nearly $9 billion and gave it his vote of confidence as an America-first tech company, it looked like the start of a new era. Investors assumed new orders would flow to the troubled chip maker and bid up the stock 120% in just five months.

And customer demand for Intel's products did explode-but Intel wasn't ready for it. After months of cutting capacity on its older production lines, the company was unprepared for a surge of orders for processors to put in AI data centers. Intel's stock has crashed 17%, wiping out more than $46 billion in market value, since executives revealed the flub on the company's fourth-quarter earnings call Thursday.

Global Markets Mixed Ahead of Busy Earnings Week

Japanese stocks fell and long-term government bonds rose after U.S. and Japanese authorities signaled that they are ready to step in to support the yen. The dollar remained under broad pressure against major currencies and bitcoin pulled back only marginally from falls overnight. Meanwhile, gold powered past $5,000 a troy ounce.

U.S. stock futures were flat to a touch lower ahead of a busy week: earnings come from Microsoft, Meta Platforms, and Tesla on Wednesday, and Apple reports on Thursday. Also on Wednesday, the Federal Reserve announces its latest rate decision, as does the Bank of Canada; both are expected to hold.

Governments' New Must-Have: Their Own Satellites

A fracturing global order has more governments shopping for satellites.

Countries in Europe, the Middle East and Asia are investing in their own satellites or paying for exclusive access to private satellites. Their goal: ensuring steady communications, data and intelligence, critical for national security as conflict and geopolitical tensions spread.

The Fed is expected to stand pat this week. The big question is for how long?

Federal Reserve officials have signaled clearly that they intend to leave their benchmark interest rate unchanged this week, leaving economists to debate a larger question - how long will the central bank stay on the sidelines?

Expectations of quick further cuts are evaporating. The market doesn't see another move until July. But waiting for six months also dims the prospect of any move.

Fed Independence Is Coming Under Attack. What It Means for Markets.

President Donald Trump's pressure campaign on the Federal Reserve, and on Fed Chair Jerome Powell in particular, will likely lead to higher inflation.

That's the implication of a new study into the impact of presidential pressure on the Fed. Entitled "Fed-President Pressure Index," the study was conducted by Yosef Bonaparte, a finance professor at the University of Colorado at Denver's Business School. Though he completed the study this past September, his findings have taken on greater urgency in the wake of the recent news about the Justice Department's criminal investigation of Powell, stemming from Powell's testimony last year about the renovation of the Fed's headquarters in Washington, D.C. The White House has accused Powell of misleading Congress about the project.

Trump Says Administration Is 'Reviewing Everything' About Minneapolis Shooting

WASHINGTON-President Trump declined to say whether the federal officer who fatally shot a man in Minnesota this weekend had acted appropriately and said the administration was reviewing the incident.

In a five-minute telephone interview with The Wall Street Journal on Sunday, Trump didn't directly answer when asked twice whether the officer who shot Alex Pretti had done the right thing. Pressed further, the president said, "We're looking, we're reviewing everything and will come out with a determination." Administration officials have publicly defended the officer.

Iran Is Selling More Oil but Making Less Money

Iran exported more oil in 2025 than it had done in years, smuggling crude in defiance of sanctions, mainly to China. At the same time, the regime's profits from the commodity collapsed.

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January 26, 2026 06:17 ET (11:17 GMT)