Week of 26 January Summary: Fed & ECB Decisions, Tech Selloffs, AI & Markets

This week brought major financial developments, from central bank policies to tech market volatility. The Fed and ECB made key rate decisions, while AI news drove sharp stock movements. European markets soared to record highs, and Alibaba entered the AI race. Let’s dive in.

Fed & ECB Rate Decisions Shape Market Sentiment

The Federal Reserve held interest rates steady, maintaining its cautious stance amid inflation concerns, while the Bank of England signalled possible future cuts. Meanwhile, the European Central Bank also left rates unchanged but hinted at a potential shift later in the year. These decisions influenced global market movements, with investors closely watching for policy changes. Read more about how central bank rate decisions impacted the markets here.

AI-Driven Selloffs Hit Tech Stocks

A new AI model from DeepSeek, a Chinese AI developer, sparked concerns about industry competition, leading to a wave of selloffs in major tech stocks. Investors reacted strongly to the potential impact of DeepSeek’s technology on established AI players, causing significant market fluctuations. Explore the full details of how DeepSeek’s AI affected tech stocks here.

Trump’s Infrastructure Policy and ACS Stock Movements

An analysis of former US President Donald Trump’s infrastructure policies revealed their long-term effects on construction and engineering stocks, particularly Spanish firm ACS. The stock saw fluctuations based on expectations of increased infrastructure spending, showing how political policies continue to influence the markets. Learn more about how Trump’s infrastructure plan affected ACS stock here.

Alibaba’s AI Expansion and Market Reactions

Alibaba officially launched a new AI product, marking its growing ambition in the artificial intelligence space. The announcement came alongside earnings reports from key companies like ASML, Tesla, and Meta. While Alibaba’s AI move generated interest, earnings results from major firms provided mixed signals for investors. Get a detailed breakdown of Alibaba’s AI launch and earnings reports here.

European Stock Indices Reach New Highs

The DAX 40 and Euro Stoxx indices hit record highs this week, driven by strong corporate earnings and a stable economic outlook. Investors remain optimistic about European markets despite broader global uncertainties, signalling confidence in regional growth prospects. Read more about European stock indices reaching record levels here.

What’s Ahead: Key Events in the Coming Week

Markets are now looking ahead to key economic events, including further rate policy discussions, major corporate earnings, and geopolitical developments. The focus will be on how central banks continue to respond to inflation trends and whether tech sector volatility persists. See what’s coming in next week’s major financial events here.

TL;DR FAQs

Did the Fed or ECB change interest rates this week?

No, both the Federal Reserve and the European Central Bank held their rates steady, though future adjustments remain possible.

Why did tech stocks sell off?

The release of a new AI model from DeepSeek led to concerns about competition in the tech sector, prompting significant selloffs.

How did Trump’s infrastructure policy impact ACS stock?

ACS stock experienced fluctuations based on market expectations of increased infrastructure spending under Trump’s policies.

Why are European stock indices reaching record highs?

Strong corporate earnings and a stable economic outlook boosted confidence in European markets, driving indices like the DAX 40 to record levels.

What major financial events are expected next week?

Upcoming key events include continued interest rate discussions, corporate earnings reports, and potential market shifts in response to economic data.

*Past performance does not indicate future results