Spot gold prices rose to a fresh record Thursday after the U.S. Federal Reserve overnight kept its benchmark rate steady at a target range of 3.5% to 3.75%. The bullion rose more than 3% to breach the $5,500 per ounce mark for the first time. Asia-Pacific markets mostly traded lower Thursday. Australia’s S&P/ASX 200 declined 0.69%. Japan’s Nikkei 225 reversed early gains to fall 0.14%, while the Topix lost 0.33%. South Korea’s Kospi was unchanged, while the small-cap Kosdaq advanced 1.87%. Hong Kong Hang Seng Index rose 0.23 in choppy trade, while mainland’s CSI 300 fell 0.31%.
The S&P 500 reached a milestone level on Wednesday, hitting 7,000 for the first time, before pulling back as the Federal Reserve left interest rates unchanged and upped its economic growth assessment. The broad market index ended the day down 0.01% at 6,978.03. Earlier, the S&P 500 was up 0.3% on the day, hitting an all-time intraday high of 7,002.28. The Dow Jones Industrial Average added 12.19 points, or 0.02%, to close at 49,015.60. The Nasdaq Composite outperformed and gained 0.17%, settling at 23,857.45.
Gold extended its record-breaking rally above $5,500 per ounce on Thursday, hitting a fresh high amid continued weakness in the US dollar and heightened economic and geopolitical uncertainty. Momentum picked up after President Trump dismissed the dollar’s slide to four-year lows, signalling tolerance for currency weakness despite ongoing tariff threats and renewed criticism of the Federal Reserve’s independence. Meanwhile, the Fed held rates as expected, citing resilient economic activity and early labour-market stabilization, but noted elevated inflation and an uncertain outlook. Two officials favoured an immediate cut, keeping expectations of easing later this year. Geopolitical risks remain elevated after US warnings of possible military action against Iran and statements that a large US naval force in the region is ready to act “with speed and violence, if necessary.” Gains were further supported by fiscal concerns, robust central-bank buying, and sustained ETF inflows.
WTI crude oil futures rose toward $64 per barrel on Thursday, advancing for a third straight session to levels not seen since late September, after US warnings of potential military action if Iran does not reach a nuclear agreement heightened concerns over supply disruptions. President Donald Trump said a large US naval force in the region stands ready to act “with speed and violence, if necessary,” adding to worries that conflict could disrupt crude shipments from the Middle East, a region responsible for roughly one-third of global supply. Potential Iranian retaliation could also target shipping through the Strait of Hormuz, a key chokepoint for oil and LNG cargoes. Iran says it is open to dialogue but warns of an unprecedented response if provoked, while stepping up diplomacy with regional powers to avert further conflict.
The Federal Reserve on Wednesday voted to take a break from a recent run of interest rate cuts, as the central bank navigates questions about its independence and awaits a new leader. Meeting market expectations, the central bank’s Federal Open Market Committee voted to keep its key interest rate in a range between 3.5%-3.75%. The decision put a halt to three consecutive quarter percentage point reductions, billed as maintenance moves to guard against potential downturns in the labour market. In voting to hold the line, the committee raised its assessment of economic growth. It also eased its concerns about the labour market as compared with inflation.
The United States is handing over to Venezuela a tanker that it seized this month, two U.S. officials told Reuters on Wednesday. The United States has been carrying out a months-long effort to seize oil tankers linked to Venezuela - carrying out seven apprehensions since late last year. The officials, who were speaking on the condition of anonymity, identified the vessel being handed over to Venezuelan authorities as the Panama-flagged supertanker M/T Sophia. They did not say why the tanker was returned. The U.S. Coast Guard, which leads interdiction and seizure operations, did not immediately respond to a request for comment. The Venezuelan communications ministry, which handles all press queries for the government, did not immediately respond to a request for comment.
U.S. President Donald Trump warned Iran on Wednesday that an “armada” was heading toward it and that it should “make a deal” with the U.S. on its contested nuclear program or face a large-scale U.S. military attack. “A massive Armada is heading to Iran. It is moving quickly, with great power, enthusiasm, and purpose. It is a larger fleet, headed by the great Aircraft Carrier Abraham Lincoln, than that sent to Venezuela,” Trump posted on Truth Social. “Like with Venezuela, it is, ready, willing, and able to rapidly fulfill its mission, with speed and violence, if necessary,” he added. Trump said he hoped Iran would come to the table to negotiate “a fair and equitable deal” regarding its nuclear weapons program. “Time is running out, it is truly of the essence,” Trump said. “As I told Iran once before, MAKE A DEAL! They didn’t, and there was “Operation Midnight Hammer,” a major destruction of Iran.
New York City Mayor Zohran Mamdani on Wednesday said the city’s wealthiest must pay more in taxes to help fill the staggering budget deficit of more than $12 billion that he was left by his predecessor. “This is at a scale that’s actually greater than what we saw here in New York City during the Great Recession,” Mamdani said of that budget hole during an interview with CNBC “Squawk Box” co-anchor Andrew Ross Sorkin at City Hall. The Democrat, who took office on Jan. 1 after campaigning on a platform of hiking taxes on the rich, attributed the big deficit to “gross fiscal mismanagement.” He pointed to actions taken by former Mayor Eric Adams, and by ex-New York Gov. Andrew Cuomo, whom he soundly defeated in the November general election, for causing that budget gap.
Samsung Electronics reported an over threefold surge in fourth-quarter profits on Thursday, hitting a new record and beating analysts’ estimates, as a memory chip shortage and strong demand for artificial intelligence servers lifted earnings. Shares of Samsung Electronics rose 2.58% at the open on Thursday before reversing course, falling 1.54% in morning trade. In an earnings call, Samsung executives noted that while surging memory prices have benefited its chip business, rising costs are also expected to impact its smartphone and display businesses moving forward. Samsung also said that its capital expenditure declined for the full year of 2025 as it maintained a “conservative investment approach,” though it expected to ramp up its memory investments this year.
Microsoft shares fell 7% in extended trading on Wednesday after the software maker posted slowing cloud growth. With respect to guidance, Microsoft called for $80.65 billion to $81.75 billion in fiscal third-quarter revenue. The middle of the range was $81.2 billion, meeting the LSEG consensus of $81.19 billion. The company’s forecast for quarterly Azure cloud growth was 37% to 38% at constant currency. The StreetAccount consensus was 37.1%. The company’s implied fiscal third-quarter operating margin is 45.1%, below StreetAccount’s 45.5% consensus. Operating expenses will include investments in artificial intelligence computing capacity and talent. Revenue from Azure and other cloud services grew 39%, compared with 40% growth in the fiscal first quarter.
Instagram-owner Meta on Wednesday boosted its capital spending plans for this year by 73% in the pursuit of "superintelligence," an effort to offer deeply personalized artificial intelligence to its large social media user base. Shareholders backed CEO Mark Zuckerberg’s ambitious capital outlay, boosting Meta stock 10% in extended trading, as the company posted a 24% surge in advertising revenue - its mainstay - for the quarter ended December 31. It also forecast first-quarter revenue above Wall Street expectations. "This is going to be a big year for delivering personal superintelligence, accelerating our business infrastructure for the future and shaping how our company will work going forward," CEO Mark Zuckerberg said on a conference call with analysts. This compares with expectations of a $109.9 billion capex budget, according to Visible Alpha, and $72.22 billion Meta spent last year.
The company, which is run by multi-billionaire Elon Musk, reported a 3% decline in total revenues in 2025, while profits fell 61% in the last three months of the year. Tesla also announced plans to end production of its Model S and Model X vehicles. It will now use the manufacturing plant in California that made those cars to produce its line of humanoid robots - known as Optimus. In January, China's BYD overtook Tesla as the world's biggest EV maker, while Musk's involvement in politics both in the US and abroad has proved controversial. Tesla also revealed a $2bn (£1.45bn) investment in Musk's artificial intelligence venture, xAI.