Volatile Start to 2026: Stock Markets Navigate Uncertain Waters

As 2026 begins, U.S. stocks teeter with increased Treasury yields and a stronger dollar. Despite a positive session end, the week saw losses amid a focus on Federal Reserve policy with Jerome Powell's tenure ending, geopolitical tensions, and the impact of AI investments. Gold and silver gained amid economic uncertainty.

The U.S. stock market experienced a volatile start to 2026, with major indexes seesawing as Treasury yields climbed and the dollar strengthened. Despite this turbulence, stocks ended nominally higher, poised to break a losing streak, although they faced losses for the holiday-shortened week.

Investors' attention is sharply focused on the Federal Reserve as Jerome Powell nears the end of his chairmanship. With delayed economic indicators due to government shutdowns back in the spotlight, market participants anticipate significant shifts in monetary policy. Geopolitical tensions and midterm elections promise further volatility throughout the year.

Amidst economic uncertainties, gold and silver noted modest gains after record-setting growth in 2025, and oil prices saw a dip due to supply-demand concerns. Meanwhile, technology stocks, buoyed by AI investment potentials, contributed to global market highs, with European and emerging markets performing robustly.

(With inputs from agencies.)