Global markets closed the week reflecting a growing tension between resilient economic activity and rising geopolitical and inflation risks.

Markets faced a volatile week as inflation concerns and geopolitical risks took center stage, pressuring both equities and fixed income. The Federal Reserve held rates steady as expected, but stronger-than-anticipated producer price data reinforced concerns that inflation may remain sticky, particularly as energy prices surge.

Geopolitics, energy, and data converged to deliver a turbulent week for markets, reminding investors that risk is rarely linear.

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.

U.S. equities opened 2026 on a strong note, with major indices rising across the board despite mixed economic signals. The S&P 500 and Nasdaq each advanced more than 1.5%, while value and equal-weight strategies continued to outperform.

US equities posted modest gains this week, with the S&P 500 edging up 0.1% as strength in consumer discretionary stocks offset declines in energy. Markets digested a series of delayed government reports following the shutdown, offering a complex view of the economy’s resilience.