Preview of US Stock Market | Three major stock index futures fell together, gold approached $5100, and rare earth company USA Rare Earth (USAR.US) surged before the market opened.

Pre-market Market Trends 1. Before the U.S. stock market opening on Monday, January 26th, the futures of the three major U.S. stock indices fell. As of the time of writing, the Dow futures were down 0.00%, S&P 500 futures were down 0.07%, and Nasdaq futures were down 0.18%. 2. As of the time of writing, the German DAX index rose 0.10%, the UK FTSE 100 index rose 0.17%, the French CAC 40 index fell 0.21%, and the European Stoxx 50 index fell 0.08%. 3. As of the time of writing, WTI crude oil rose 0.07% to $61.11 per barrel. Brent crude oil rose 0.12% to $65.15 per barrel. Market News Several tech giants' earnings reports are coming out this week: A trillion-dollar AI bet faces a big test. Microsoft Corporation, Meta Platforms, and Tesla, Inc. will report earnings on Wednesday, with Apple Inc. following on Thursday. With major tech companies preparing to release quarterly earnings over the next few weeks, AI trading is approaching a critical point. The narrative of the "Big Seven" tech giants being undisputed winners in the market has been shaken this year, with investors turning to cyclical stocks, small-cap stocks, and international markets for momentum. This earnings season will test the resilience of these mega-cap tech stocks, especially in the context of a shifting market from a few winners to a more broad-based approach. Additionally, as the storage chip industry enters a "super cycle", South Korea's two major storage chip giants, SK Hynix and Samsung Electronics, will report earnings this week. Wall Street analysts are becoming more optimistic about the fundamentals and stock prospects of core companies in the storage chip/storage product industry. Can Powell stand firm? The market has already bet that the Fed will not yield. The battle over the independence of the Federal Reserve has escalated on multiple levels this year, but the world's most important central bank shows hardly any signs of compromisenow receiving support from the Supreme Court and senior politicians. Whether this support gives the Fed the confidence to resist pressure for quicker rate cuts will be a key test this week. The Federal Open Market Committee (FOMC) meeting this week is almost certain not to start an accelerated easing cycle. However, how Powell plans the future policy path, how he responds to political pressure, and whether he can attend press conferences on time have become uncertain eventsespecially with President Trump likely to announce his replacement for Powell during this two-day meeting. Additionally, as the U.S. Attorney's Office for the District of Columbia has launched a criminal investigation into Federal Reserve Chair Powell, involving the Fed's renovation project at its Washington headquarters and whether Powell lied to Congress about the scope of the project, Powell's ability to attend press conferences on time has become an uncertain event. JPMorgan signals ahead of the Fed rate decision: internal hawkish signals emerge, policy statement language may be adjusted. JPMorgan recently released a forward-looking research report on this week's Federal Reserve decision. JPMorgan said that this meeting will not release a new dot plot or economic forecasts, and any modifications to the post-meeting statement are unlikely to send substantial policy signals. In the press conference, the bank expects Powell to state that current policies are well-prepared to address the various risks facing the Fed's dual mandate, and it believes he will avoid discussing various political issues related to the Fed. The bank expects several adjustments in the statement: the description of economic growth may be raised from "moderate" to "solid"; employment growth might still be described as slow, but unlike the previous statement mentioning a "slight increase in the unemployment rate before September", this week's statement may say the unemployment rate has stabilized in recent months. The bank expects inflation to continue to be described as "slightly high". In terms of risk balance, the bank expects the committee to remove the phrase "the risk of employment downturn has increased in recent months", but will still emphasize its sustained focus on the risks on both sides of the dual mandate. Approaching $5100! Gold bulls move full speed ahead, GEO Group Inc risks + currency devaluation ignite the market. The international gold price has reached the $5000 per ounce mark for the first time, with the rise continuing ferociously. This sharp rise in gold is driven by President Trump's reshaping of the international diplomatic landscape and investors withdrawing significantly from sovereign bonds and various currencies. Boosted by the weakened dollar, gold was up by as much as 2.2% at the time of writing, approaching $5100 per ounce, having risen to $5111.11 per ounce earlier in the day. Over the past six trading days, the U.S. dollar index has accumulated nearly a 2% decline. The market speculates that the U.S. may assist Japan in boosting the yen exchange rate, adding to concerns about the Fed's independence, Trump's policy unpredictability, and further exacerbating the weakness of the dollar. Other precious metals also rose: spot silver rose over 6% to $109.7 per ounce, having at one point risen to $110.125 per ounce; spot palladium rose more than 5%; spot platinum rose by nearly 4%. Homeland Security funding becomes a fuse, shadow of U.S. government shutdown reappears. According to reports, a Senate Republican aide stated that Senate Republican leaders plan to reject the Democratic demand to split funding for the Department of Homeland Security and instead push for a comprehensive spending bill to avoid a partial government shutdown this week. Several Democratic senators criticized Immigration and Customs Enforcement (ICE) actions in Minnesota on January 24th. Senate Democratic Leader Chuck Schumer stated that if funding for the Department of Homeland Security is included in the government funding bill, Democrats will block it in the Senate. Last December, Congress passed a temporary federal funding bill, ending the longest government shutdown in U.S. history lasting 43 days. The temporary funding bill expires at the end of this month, and Congress must pass a new funding bill by then, or many federal agencies will shut down again. Stock News Trump administration to invest $16 billion in USA Rare Earth (USAR.US), valuing it at $16 billion! According to reports last Saturday, the Trump administration plans to invest $16 billion in USA Rare Earth in exchange for a 10% stake in the company, marking the largest investment by the U.S. government in the rare earth industry to date. According to the details of the deal disclosed by both parties, this total investment of $16 billion includes around $2.77 billion in equity acquisition and $13 billion in government loans, allowing the U.S. government to hold a 10% stake in the company. In addition to direct financial support from the government, investment bank Cantor Fitzgerald will lead a $10 billion private financing plan, increasing USA Rare Earth's overall valuation to around $16 billion through a public-private partnership. This amount far exceeds the company's current secondary market capitalization, reflecting a high degree of consensus among Wall Street and the White House on the premium of strategic mineral resources. At the time of writing, USA Rare Earth surged over 37% in pre-market trading on Monday, while another U.S. rare earth supplier, MP Materials (MP.US), rose by over 5%. $30 billion mega acquisition deal falls through! Merck & Co., Inc. (MRK.US) and Revolution (RVMD.US) terminate talks due to price differences. According to sources, Merck & Co., Inc. has ended talks to acquire biotech company Revolution Medicines due to the two parties failing to reach an agreement on the acquisition price. The deal was reportedly expected to value Revolution Medicines at around $30 billion. Reports also suggest that negotiations could restart in the future, or other bidders may emerge. Currently, Merck & Co., Inc. is seeking to strengthen its treatment portfolio through deals to address an expected $18 billion loss in revenue over the next five years due to patent expirations. The deal with Revolution Medicines could have given Merck & Co., Inc. access to its experimental drug Daraxonrasib. At the time of writing, Revolution Medicines plunged by over 22% in pre-market trading on Monday. Citi Group (C.US) may announce another round of layoffs in March, potentially affecting MD and senior-level employees. Citi Group is expected to lay off more employees in March, following a cut of about 1000 employees earlier this month. Sources suggest that the new round of layoffs is likely to be announced after bonus payouts, but the exact number of layoffs is not disclosed. The March layoffs are expected to potentially affect MD and senior-level employees across various business lines. Some senior management has already been reassigned to different departments to ensure stability before personnel reductions. Citi Group's CFO mentioned in a recent earnings call that they have been reducing their workforce and expect this trend to continue in order to reduce costs and improve efficiency. He also mentioned that Citi Group spent approximately $800 million on severance last year. IonQ (IONQ.US) rumored to invest $1.8 billion to acquire local foundry giant SkyWater (SKYT.US), helping secure long-term orders from the U.S. Department of Defense. Quantum computing company IonQ Inc. has reportedly agreed to acquire SkyWater Technology at an estimated valuation of $18 billion. IonQ will acquire the Minnesota-based company in a cash and stock deal worth $35 per share. IonQ CEO Niccolo de Masi stated that this deal aligns with Trump's goal to revitalize U.S. chip manufacturing. SkyWater is the only pure-play semiconductor foundry in the United States. By acquiring it, IonQ gains a trusted domestic production line, addressing supply chain risks for quantum chips (QPUs) from design, prototyping, to large-scale production. At the time of writing, SkyWater surged over 7% in pre-market trading on Monday, while IonQ rose nearly 2%. Earnings Forecast Before Tuesday's market opening: UnitedHealth Group Incorporated (UNH.US), Boeing Company (BA.US), NextEra Energy (NEE.US), Union Pacific (UNP.US), United Parcel Service (UPS.US), General Motors Company (GM.US), American Airlines Group Inc. (AAL.US)