Gold hits record as stocks climb amid tariff concerns

U.S. stock indexes rose on Monday, January 26, as gold surged past $5,100 per ounce for the first time, reflecting investor moves toward safer assets. The S&P 500 climbed 0.5%, the Dow Jones Industrial Average added 0.6%, and the Nasdaq composite gained 0.4%. The divergence between stocks and precious metals underscored mounting anxiety about potential tariffs and persistent economic uncertainty.

The week ahead poses major tests for markets, with the Federal Reserve’s interest rate decision and a slate of earnings reports from technology giants set to move markets already jangled by tariff threats from the Trump administration.

Stock indexes rose on Monday as investors juggled competing signals: mixed corporate earnings, safe-haven buying in precious metals, and anxiety over escalating tariff threats.

The S&P 500 climbed 34.62 points to 6,950.23, a 0.5% gain. The Dow Jones Industrial Average added 313.69 points to 49,412.40, a 0.6% rise. The Nasdaq composite advanced 100.11 points to 23,601.36, a 0.4% increase that left it still in positive territory for the year.

Precious metals climbed more sharply. Gold surged 2.1% to briefly top $5,100 per ounce for the first time, setting another record. Silver rose 14%, settling much higher.

The flow into precious metals reflects a familiar pattern when economic uncertainty mounts: investors seeking assets perceived as safer than equities. Prices have been rising as market participants worry about tariffs, high inflation, political instability, and mounting government debt worldwide.

Corporate Winners

Energy and infrastructure stocks led the day’s gains. Baker Hughes, an energy technology company, climbed 4.4% after reporting stronger-than-expected quarterly profits. The company said it is benefiting from strong momentum in demand for liquefied natural gas.

CoreWeave rallied 5.7% after Nvidia announced a $2 billion investment in the artificial-intelligence infrastructure firm. Nvidia said the money will help accelerate CoreWeave’s buildout of AI data centers using Nvidia chips, with completion targeted for 2030. Nvidia’s stock slipped 0.6% despite the commitment.

USA Rare Earth surged 7.9% on government support for domestic production. The U.S. government agreed to provide $277 million in direct funding to help the company produce heavy rare earths and magnets. The Trump administration also committed to a proposed $1.3 billion loan. The company separately raised $1.5 billion from private investors.

Airlines Mixed, Dollar Slides

Airlines showed mixed results after canceling thousands of flights over a winter weekend. Delta Air Lines lost 0.7%, while Southwest Airlines added 0.2%.

The U.S. dollar continued a recent decline against peer currencies. The Japanese yen leaped sharply on expectations that officials in Japan and the United States may intervene to support the currency.

Tariff Threats Ahead

President Donald Trump threatened to impose a 100% tariff on Canadian goods if Canada signs a free trade deal with China, adding to the tariff uncertainty that has rattled markets throughout January.

The week ahead poses significant tests. The Federal Reserve will announce its latest interest rate decision Wednesday. The central bank has been lowering its main interest rate and has indicated that more cuts may occur in 2026, though most economists expect it to hold steady this week. Inflation remains stubbornly above the Fed’s 2% target. Federal Reserve Chair Jerome Powell’s comments following the decision could move markets substantially.

Major technology companies will report quarterly earnings this week. Meta Platforms, Microsoft, and Tesla are scheduled to report Wednesday, followed by Apple on Thursday.

In the bond market, the 10-year Treasury yield eased to 4.21% from 4.24%, suggesting some shift in expectations about interest rates and growth.

Asian Markets Decline

Indexes abroad were mixed with more pronounced moves in Asia. Japan’s Nikkei 225 index dropped 1.8%, one of the world’s larger daily moves. Toyota Motor fell 4.1% as investors worried that a stronger yen could erode profits for Japanese exporters.