Fed Holds Rates Steady as Microsoft, Meta, Tesla Beat Earnings; Gold Hits Record High

So far, it has been an eventful week for the economic and financial landscape. The Federal Reserve maintained its key interest rate in its first 2026 meeting, while major tech firms posted strong quarterly earnings. Meanwhile, Gold surged to an all-time high as the U.S. Dollar weakened, capping a pivotal day for markets.

TL;DR 

• Fed held rates at 3.5%-3.75%, split vote signals caution.

• Microsoft, Meta, and Tesla all beat earnings expectations.

• Gold hit a record above $5,500 amid Dollar weakness.

• The U.S. Dollar weakened while Oil prices soared on geopolitical tensions.

Key Developments

Fed Holds Interest Rates Amid Mixed Policy Views

The Federal Reserve voted to hold interest rates in a range of 3.5% to 3.75% on 28 January, citing ongoing disinflationary trends but strong economic momentum. The decision was split, with some policymakers favouring a rate cut. Chair Jerome Powell indicated a “patient” stance, awaiting clearer inflation signals before acting.

Microsoft Surpasses Estimates, Cloud Tops $50 Billion

On Wednesday, 28 January, Microsoft reported second-quarter earnings exceeding Wall Street expectations, posting revenue of $81.3 billion and net income of $30.9 billion. Cloud revenue reached a record $50.1 billion, underscoring continued enterprise demand. However, shares dipped after-hours due to investor concern over rising capital expenditure.

Tesla Posts Q4 Beat, Optimus Robot Timeline Confirmed

Tesla delivered a Q4 earnings beat on Wednesday, with optimism bolstered by confirmation that its humanoid “Optimus” robot could enter production by the end of 2026. While revenue slightly missed expectations, earnings per share and product development updates lifted investor sentiment.

Meta Earnings Strong, AI Investment Ramps Up

Meta Platforms reported a strong Q4 on Wednesday, with revenue close to $60 billion. The company announced plans to spend as much as $135 billion in 2026, primarily on AI infrastructure and data centres. Shares rose in response to the robust results and ambitious tech roadmap.

Gold Surges to Record High Amid Dollar Weakness

Following the Fed decision on Wednesday, Gold prices spiked above $5,500 per ounce, reaching an all-time high, as a weaker Dollar and investor demand for safe-haven assets drove a sharp rally. Still, Gold hit a peak of $5,579 before settling slightly lower.

Additional Context

The alignment of strong corporate earnings with a “pause” from the Fed added to market complexity. While investors welcomed growth from tech giants, the cautious tone from central bankers and volatile commodities like Gold suggested an ongoing tug-of-war between risk appetite and macro caution.

More Swings to Keep in Mind

Besides the above, traders and investors may want to keep track of the following market swings:

Oil Price Rises on U.S.-Iran Tensions 

Oil prices climbed for a third consecutive day on Thursday as traders grew increasingly worried that a U.S. military strike on Iran could disrupt crude supply from the Middle East, boosting the geopolitical risk premium in global energy markets. Brent Crude and U.S. West Texas Intermediate Futures have risen about 5 % this week to their highest levels since late September, with Brent nearing the $69/barrel mark and WTI also up. Markets were also supported by an unexpected drop in U.S. crude inventories and ongoing geopolitical tensions centred on President Trump’s pressure on Tehran and the deployment of U.S. naval forces to the region. Analysts warn that further escalation could push prices even higher.

U.S. Dollar Weakens

While Gold strengthened, the U.S. Dollar slid to record lows on Tuesday. This recent drop was triggered in part by comments from President Trump, who downplayed concerns over the currency’s decline, remarks that encouraged more selling of the Dollar in global FX markets. However, on Wednesday, following the Fed’s recent remarks, the U.S. Dollar rebounded. (Source: Yahoo Finance)

Conclusion

Markets responded to a day of major headlines with mixed sentiment. The Fed's steady hand, along with robust results from Microsoft, Tesla, and Meta, fuelled optimism in tech. Meanwhile, gold’s record run highlights continued investor caution amid currency and geopolitical uncertainty.

*Past performance does not reflect future results. The above is for marketing and general informational purposes only, and are only projections and should not be taken as investment research, investment advice or a personal recommendation.