Fed Holds Steady, Big Tech Earnings Diverge, and Commodities Surge: PALvatar Market Recap, January 29 2025 - Real Vision Daily Briefing Recap

Podcast: Real Vision Daily Briefing

Published: 2026-01-29

Duration: 6 minutes

Summary

The Federal Reserve has maintained its interest rates, while big tech earnings show divergence with Tesla rising and Microsoft falling. Commodities like gold and copper surge amidst geopolitical tensions.

What Happened

The Federal Reserve decided to keep its benchmark interest rates unchanged, maintaining a range between 3.5% and 3.75% after a series of cuts last year. Chair Jerome Powell signaled an extended pause, with traders anticipating a rate cut by June according to CME's FedWatch tool.

Earnings reports from major tech companies showed divergent trends. Tesla's annual revenue fell for the first time, but its focus on AI and robotics, including a $2 billion investment in Elon Musk's XAI, led to a 2% pre-market share price increase. Conversely, Microsoft's shares dropped despite record revenues, due to concerns over AI spending and slow cloud growth.

Meta's earnings painted a different picture, with shares surging despite significant AI investments. Financial analysts highlighted the importance of CEO messaging in post-earnings calls, leading to varied market reactions.

In commodities, precious metals like gold and silver saw significant increases due to geopolitical tensions and a weakening dollar. Gold nearly reached $5,600 for the first time, while silver rose 60% year-to-date. Copper, in particular, surged 6% to a record high.

Oil prices also increased, reaching a four-month high amid US-Iran tensions. Meanwhile, a potential US government shutdown might be avoided as President Trump and Senator Chuck Schumer negotiate a deal.

In the Eurozone, consumer confidence improved, reaching the highest level in nearly a year, and services sentiment hit a two-year peak. In the UK, Prime Minister Keir Starmer engaged in productive talks with China's President Xi Jinping.

The crypto market saw notable developments with the UAE Central Bank approving its first USD-backed stablecoin. In the US, the SEC warned that tokenized stocks and bonds would fall under securities laws.

Key Insights