Volatility returned to global markets last week as a mix of geopolitical tension, inflation surprises, and shifting policy signals kept investors on edge.

Economic data last week painted a mixed picture. ISM manufacturing moved back into expansion, services held steady, and consumer sentiment improved slightly, even as weaker job openings and claims data suggested labor market cooling. The delayed January employment report, paused by a brief government shutdown, will soon offer additional clarity.

The Federal Reserve kept short-term interest rates unchanged this week, signaling patience amid mixed U.S. economic data. Durable goods orders and housing prices edged higher, while consumer confidence slipped and producer prices rose faster than expected—reminding investors that inflation still lingers.

In a week where geopolitics collided with markets, U.S. equities closed mixed after a volatile stretch dominated by President Trump’s pursuit of Greenland and its potential implications for trade relations. The S&P 500 fell 0.4%, marking a second straight weekly decline despite remaining up 1% month-to-date.