The week has already started with high market volatility, and more is expected over the next five business days.
Add to that the Federal Reserve’s meeting and rate decision, and even more inflation data, and we’re in for a rollercoaster ride this week. “Get ready for a big week,” the Kobeissi letter said, warning of “significant volatility this week.”
Economic events January 26 to 30
US President Trump threatened Canada this weekend with 100% tariffs if the country goes ahead with a deal with China. However, Canadian Prime Minister Mark Carney said On Sunday, his country does not plan to sign a free trade deal with China, allaying fears among some investors.
Meanwhile, the US government is increasingly likely to head to a partial shutdown this week as Senate Democrats vow to oppose a funding package.
“Government funding is set to expire at the end of the week, and Republicans are determined not to stage another government shutdown,” sources said told CNBC.
As for economic data, the January Consumer Confidence report will be released on Tuesday, providing insight into consumer confidence.
The Fed’s interest rate decision will follow on Wednesday. There is currently a 97% chance that rates will remain unchanged. according to to CME prediction markets.
December’s Producer Price Index (PPI) inflation data will be released on Friday, adding more fuel to the economic fires. This measures the average change over time in the selling prices that domestic producers receive for their production, and reflects price changes for goods and services.
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Brace yourself for a big week ahead:
1. Markets react to 100% Canadian tariff threat tonight
2. Markets React to 75% Chance of Government Shutdown – Tonight
3. Consumer confidence data from January – Tuesday
4. Fed rate decision and press conference – Wednesday
5. Microsoft, Meta,…
— The Kobeissi Letter (@KobeissiLetter) January 25, 2026
Additionally, four of the “Magnificent 7” report quarterly earnings this week, with Microsoft, Meta and Tesla on Wednesday, and Apple on Thursday. Stock futures were already falling on Monday, anticipating this week’s turbulent waters.
Crypto Market Outlook
Crypto markets were deep in the red during Monday morning’s trading session in Asia. Total capitalization was down 1.8% that day to $3 trillion.
Bitcoin led the losses, falling to $86,000, a five-week low, before a small recovery to $87,700. The assets are currently teetering at key support levels, which if broken could result in a full-fledged bear market.
Ether prices continued to weaken, with assets briefly falling below $2,800 and not seeing much of a recovery. The altcoins were a predictable bloodbath.
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