South Korean chipmaker SK Hynix is stepping up its push into artificial intelligence by setting up a new US-based company focused on AI solutions, committing at least $10 billion to the effort.

The move comes as demand for memory chips accelerates across global markets, driven by the rapid expansion of AI infrastructure.

With supply constraints pushing prices higher, the company is positioning the US as a central base for scaling AI technologies while deepening its presence in a market that sits at the heart of the global semiconductor ecosystem.

The new entity is designed to anchor SK Group’s broader AI strategy and support faster deployment of AI technologies worldwide.

It also reflects how memory makers are adapting to a cycle defined less by consumer electronics and more by data centres and AI workloads.

US-based AI strategy

The new company, tentatively named AI Company or AI Co., will be established in the US and serve as a hub for SK Group’s AI initiatives.

SK Hynix said the planned investment would be rolled out on a capital-call basis, allowing funding to be deployed gradually as projects advance.

Alongside internal development, the group plans to make strategic investments in American AI firms.

These moves are intended to strengthen collaboration across SK Group affiliates and embed the company more deeply within the US AI ecosystem, where much of the world’s AI research, capital, and deployment is concentrated.

Memory supply pressure

SK Hynix’s growing role in AI has been shaped by its leadership in high-bandwidth memory, a critical component used in advanced AI chipsets.

These memory products are widely used in processors developed by companies such as Nvidia, making a reliable supply a key bottleneck in the AI hardware market.

As cloud providers and AI developers race to expand capacity, shortages across the memory supply chain have intensified.

This imbalance has driven up prices and lifted margins for leading suppliers.

SK Hynix’s forecast-beating fourth-quarter results, also announced Wednesday, underscored how tight supply conditions are translating into stronger earnings for memory producers.

Solidigm reshaped

To create the new AI-focused entity, SK Hynix will restructure Solidigm, its California-based enterprise solid-state drive (SSD) business that was formed in 2021.

Solidigm’s existing operations will be transferred to a newly named company, Solidigm Inc.

This restructuring separates established storage activities from newer AI-driven initiatives, giving SK Hynix more flexibility to pursue AI-specific investments.

It also allows the US-based AI hub to operate with a clearer mandate as the company shifts resources toward higher-growth segments tied to AI infrastructure.

Investment and policy backdrop

The US expansion fits into a broader investment push by SK Hynix as it works to capture rising AI demand.

Beyond the new AI company, the group has committed nearly $13 billion to build an advanced chip packaging plant in South Korea, aimed at supporting next-generation memory products.

In the US, SK Hynix is already developing a $3.87 billion advanced chip packaging fabrication and research facility in Indiana, announced in 2024.

The site is expected to produce high-bandwidth memory for AI applications, with operations scheduled to begin in 2028.

Together, these projects highlight how the company is balancing domestic and overseas investment as AI reshapes semiconductor supply chains.

The move also aligns with political pressure in Washington.

The Trump administration has warned that semiconductor manufacturers could face tariffs if they fail to expand production and research in the US.

US President Donald Trump said on Tuesday that Washington would work something out with South Korea following recent tariff threats, signalling a possible easing of tensions after months of negotiations.

For SK Hynix, building a US AI hub offers both commercial and strategic advantages.

As AI demand tightens global memory supply, the company is betting that closer proximity to customers, partners, and policymakers will help it stay ahead in an increasingly competitive market.

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Maersk, a major container shipping company, announced that severe weather, specifically heavy storms and snowfall, is causing significant disruption to its cargo operations across a large area of Europe. 

The impact is being felt across south-west and western Europe, affecting the seamless flow of goods, according to a Reuters report. 

Furthermore, the adverse weather conditions are also complicating deliveries to and from the northern regions of the continent. 

This disruption highlights the vulnerability of global supply chains to extreme weather events, leading to potential delays and logistical challenges for businesses relying on Maersk’s services.

Disruptions in Southern Europe

Across Southern Europe, a series of intense weather events has led to widespread disruption and emergency measures. 

On Wednesday, countries on the Iberian Peninsula, notably Portugal and Spain, found themselves under the threat of severe weather, prompting official warnings and cautionary advice for residents and travelers. 

This followed a significant weather crisis in Italy, where the repercussions of a violent storm were still being intensely managed. 

The Italian government, reacting to the devastation that occurred last week, formally declared a state of emergency on Monday for its battered southern regions. 

This severe weather event had been characterised by a tempestuous storm that unleashed torrential rain and powerful winds, resulting in a damaging surge that pushed significant volumes of water inland, causing extensive flooding, property damage, and disrupting essential services across the affected territories. 

The state of emergency declaration is a critical step, enabling the activation of necessary funds and resources for immediate relief efforts, cleanup, and the long-term reconstruction of the damaged infrastructure in the storm-hit areas.

Operations at terminals hit

Operations have ceased at terminals in the western Mediterranean, according to Maersk, with no available timeline for when they will resume.

“The severe conditions are causing significant industry-wide disruptions with vessels sheltering and terminals having to stop operations or working with reduced productivity,” Maersk was quoted as saying in the Reuters report.

This situation is affecting the entire industry, and due to the severity and uncertainty of the conditions, we expect delays and closures to continue to impact vessels and terminals across the board.

In a recent maritime incident, rival shipping conglomerate CMA CGM reported a significant loss of cargo containers at sea. 

The company confirmed last week that one of its vessels encountered unexpectedly severe weather conditions while operating off the coast of Malta.

The powerful storm resulted in the loss of 58 containers overboard.

Furthermore, CMA CGM noted that the intense weather system also inflicted damage on additional containers that remained secured on the vessel’s deck, although the exact number and extent of this secondary damage were not specified in the initial report. 

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Shell and BP are actively pursuing US licenses to begin extracting natural gas from shared fields in Trinidad and Tobago and Venezuela, the Caribbean country’s energy minister Roodal Moonilal announced on Wednesday, according to a Reuters report.

As Latin America’s top exporter of liquefied natural gas and a major global supplier of ammonia and methanol, Trinidad is now focusing on developing offshore fields in Venezuela and along the maritime border. 

The above strategy is intended to counteract the island’s dwindling reserves and secure its supply.

Headwinds faced by Trinidad and Tobago

Trinidad and Tobago’s natural gas project development has faced considerable headwinds in recent years, primarily due to the inconsistent and shifting policy stance of the US toward neighbouring Venezuela. 

The frequent changes in US sanctions and energy policy concerning Venezuelan gas reserves and potential joint ventures have created a climate of regulatory uncertainty. 

This instability has made international investment in cross-border gas field development, particularly those involving shared reserves like the Loran-Manatee field, extremely cautious. 

As a result, critical projects intended to bolster Trinidad’s gas supply—essential for its significant liquefied natural gas (LNG) export industry and petrochemical sector—have been significantly delayed, hindering the nation’s efforts to maximise its hydrocarbon potential and secure its long-term energy future. 

The slow pace of progress underscores the complex geopolitical challenges involved in developing major energy resources in the Caribbean region.

Last year, President Nicolas Maduro’s administration in Venezuela halted energy-development collaboration with Trinidad and Tobago.

This suspension affected various initiatives, including planned joint natural gas projects.

The US is expediting developments in Venezuela’s oil and gas sector, particularly after the capture of Maduro this month. 

Due to Washington’s sanctions on Venezuela’s energy industry, US licenses are a prerequisite for companies to proceed with project development.

Shell, BP want US licenses 

Shell is pursuing a license to develop the Loran-Manatee discovery, according to Moonilal, who spoke to reporters at the Indian Energy Week conference. 

The natural gas field is estimated to contain approximately 10 trillion cubic feet (tcf) of gas.

Of this total, 7.3 tcf is located on Venezuela’s side of the boundary, with the remaining 2.7 tcf situated in Trinidad.

BP is currently seeking a license to develop the Cocuina-Manakin field.

Notably, the Venezuelan section of this field is part of the inactive Plataforma Deltana gas offshore project, which possesses 1 trillion cubic feet of proven gas reserves.

Moonilal said:

The United States is an ally and a very strong friend trying to reform, so we would help the companies when it comes to supporting their applications.

Dragon gas

In October, Washington had authorised Shell and Trinidad and Tobago to proceed with the development of the Dragon gas field. 

This project, located offshore Venezuela near the maritime border, is intended to supply Venezuelan gas to Trinidad.

Production at the Dragon gas field is anticipated to commence in the fourth quarter of 2027, according to Moonilal, with an expected daily output of 350 million cubic feet of gas.

Venezuela’s Dragon field contains one of the largest natural gas deposits.

Trinidad, suffering from insufficient reserves and production, requires this gas to supply its revenue-generating sectors, such as liquefied natural gas (LNG) and petrochemicals.

Moonilal stated that Trinidad is looking to lead and collaborate with other Caribbean nations, including Suriname, Guyana, and Grenada, to advance natural gas development now that its projects are operational again.

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Amazon.com Inc. said on Wednesday it plans to cut about 16,000 corporate jobs, marking a second major round of layoffs in three months as the company moves to streamline management layers and accelerate the adoption of artificial intelligence across its operations.

The latest reductions deepen a restructuring effort that began last year and underscore how AI-driven automation is reshaping workforce strategies at some of the world’s largest technology companies.

Second major round of layoffs targets corporate roles

Amazon said affected US-based corporate employees will be given 90 days to search for a new internal role, alongside severance and transition support.

The details were outlined by Beth Galetti, senior vice president of people experience and technology, in a blog post.

“We’ve been working to strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy,” Galetti said.

The job cuts follow Amazon’s decision in late October to eliminate 14,000 white-collar roles.

Taken together, the two rounds bring announced corporate reductions to roughly 30,000 positions, a scale that echoes the rolling layoffs carried out in late 2022 and early 2023, when about 27,000 jobs were cut.

Reuters previously reported that the second round of layoffs was in the works and would affect teams across Amazon Web Services, retail, Prime Video, and human resources.

AI and management layers drive restructuring

Chief executive officer Andy Jassy has repeatedly emphasized the need to cut bureaucracy and management layers that built up during a pandemic-era hiring surge.

Last summer, he warned employees that advances in artificial intelligence would lead to job losses as more tasks become automated.

The latest cuts highlight how AI tools are increasingly being used to handle duties ranging from routine administrative work to complex coding tasks, allowing companies to operate with leaner corporate teams.

Industry-wide, tech groups have been reassessing staffing needs as AI assistants improve in speed and capability.

Amazon has also been investing heavily in robotics across its warehouse network, aiming to speed up packaging and delivery, reduce reliance on human labor, and lower costs in its core e-commerce business.

Corporate workforce impact remains contained

Despite the scale of the announcement, the layoffs affect a relatively small share of Amazon’s overall workforce.

The company employed about 1.57 million people as of Sept. 30, most of whom work in fulfillment centers and warehouses.

Its corporate workforce totals roughly 350,000 employees, meaning the latest 16,000 cuts represent about 4.6% of that group.

Even if the full 30,000 corporate roles flagged across both rounds are eliminated, they would still account for a small fraction of Amazon’s total headcount, though nearly 10% of its corporate staff.

Amazon’s moves mirror a broader trend among major technology companies that rapidly expanded during the COVID-19 demand boom and are now restructuring.

Firms, including Meta Platforms and Microsof,t have also cut jobs while refocusing investment toward artificial intelligence and efficiency gains.

On Tuesday, Amazon Web Services employees received a premature email mentioning layoffs.

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Investors head into this week’s Federal Reserve meeting expecting no change in interest rates and an uneventful outcome, while market leadership continues to widen beyond mega-cap tech.

According to CME FedWatch, markets assign a 97% chance the Fed holds steady when the Federal Open Market Committee concludes on Wednesday afternoon.

Rates markets were calm, and the dollar softened, with the USD at a four-month low and the yen firmer amid intervention risks, according to the Global Strategy Team at TD Securities.

US stock futures were mixed early Monday: Dow futures were less than 0.1% higher, S&P 500 futures were mostly flat, and Nasdaq 100 futures were roughly 0.1% lower.

What to expect from the Fed this week

The Fed meets Tuesday and Wednesday, with a decision due Wednesday afternoon. TD Securities expects “a relatively uneventful meeting,” with the central bank remaining on hold.

Alex Guiliano, chief investment officer at Resonate Wealth Partners, also expects an uneventful Jan. 28 meeting and “little reason for the Fed to cut rates right now, especially after cuts at each of the last three meetings,” he told MarketWatch.

The current rate-cutting cycle began in September 2024.

Political pressure on Chair Jerome Powell has intensified.

According to MarketWatch, President Donald Trump has pushed for lower rates, attempted to fire Fed governor Lisa Cook, and opened a criminal investigation into Powell.

Guiliano said he expects Powell to tread carefully if the topic arises in the press conference.

Markets focus on earnings and the economy

Despite the Fed backdrop, investors appear more focused on earnings and the economic outlook.

“I don’t think the market needs a cut,” and it can be fine without one early this year, Liz Thomas, head of investment strategy at SoFi, told MarketWatch.

Market leadership has broadened. Growth sectors, including tech, have lagged more cyclical and value areas in recent months.

Energy, industrials, and materials have been early 2026 winners, and the small-cap Russell 2000 has outpaced the S&P 500 in January, according to MarketWatch.

MarketWatch notes the US economy looks stable, with inflation largely under control and GDP growth solid.

A return of federal data releases after last fall’s shutdown has helped investors assess trends following a soft patch in the 2025 labor market.

Currency and rates backdrop

TD Securities reported a quiet session for Treasuries, with rates finding support.

Data were limited: the S&P Composite PMI for January ticked up to 52.8 from 52.7, while the University of Michigan index was revised to 56.4 from 54.0.

The USD hit a four-month low to start the week, while the JPY gained on intervention risks, with talk of coordinated rate checks from the Fed and Bank of Japan, TD Securities said.

Near-term catalysts to watch

Earnings could be the bigger swing factor. Half of the “Magnificent Seven” report this week, with Microsoft, Meta Platforms, and Tesla on Wednesday, Jan. 28, and Apple on Thursday, Jan. 29, according to MarketWatch.

These names still carry significant weight in the S&P 500, though broader participation could make the market more durable.

“The S&P 500 is expected to grow earnings by 15% this year and is currently priced around 22-times next year’s earnings,” Scott Helfstein, head of investment strategy at Global X, told MarketWatch.

He added that most of last year’s gains arrived during earnings season, suggesting fundamentals are a key driver, while lower rates are a tailwind but “not a precondition” for stocks to rise.

Policy outlook and politics

MarketWatch reports that Trump is expected to name a new Fed chair, which could bring “stock-market volatility” as the market adjusts midyear, according to Guiliano.

Traders are starting to price a 59.4% chance of a June rate cut, which may reinforce a pause at the next few meetings.

Why Fed days still move markets

Even if the Fed stands pat, volatility around the press conference remains common.

Thomas said investors often “listen so closely and hang on to every word of Jerome Powell,” and warned that “the most dangerous time to trade is between 2 and 2:30 p.m. Eastern time on Fed days.”

Bottom line: with the Fed widely expected to hold, attention is shifting to earnings and the economy, while FX and rates signal a calmer backdrop.

The next leg likely hinges on profit trends, incoming data, and the Fed’s leadership transition later this year.

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The KOSPI Composite Index continued its remarkable rally, reaching its highest level on record as the AI boom continued and the frenzy among investors accelerated. It also jumped despite the renewed tariff threat from the United States. It has soared by over 121% from its lowest level this year.

KOSPI Composite Index jumps despite the tariff threat 

South Korean stocks have been in a strong uptrend in the past few months as demand from investors gained steam. The rally was supercharged last year when the country’s president predicted that the KOSPI Index would jump to KRW 5,000, up from KRW 2,100 at the time.

The index rallied on Tuesday even after Donald Trump announced that he was considering imposing a 25% tariff on all goods from South Korea. He cited the fact that the country’s parliament had failed to codify the deal he reached last year with the government.

The president said that new tariffs will apply to all goods shipped from South Korea, including lumber, autos, and pharmaceutical products. These tariffs would hit top companies like Hyundai, LG, and Samsung. Hyundai sold over 1.1 million vehicles to the United States in 2024.

Donald Trump and his South Korean counterpart reached an agreement that slashed the reciprocal tariffs to 15%. South Korea also pledged to invest billions of dollars in the United States. 

Most recently, a report by Bloomberg noted that the country would delay implementing the investment to the United States because of the fears of capital outflows and currency volatility.

READ MORE: Here’s why the Kospi Composite Index is in an unstoppable bull run

One potential reason why the KOSPI Composite Index is soaring is the concept known as TACO, which stands for Trump Always Chickens Out.

It simply meant that Trump often makes statements that he never follows through on. For example, he recently threatened to take over Greenland and then stepped back, receiving a deal that has always existed.

Looking ahead, the next key catalyst for the KOSPI Composite Index this week will be the upcoming Samsung Electronics earnings, which are scheduled for Thursday. These results will provide more color on its business amid the ongoing AI boom.

The KOSPI Index also rose amid rising optimism that the central bank will deliver a dovish policy statement after a recent report showed that the economy contracted in the fourth quarter. 

The top gainers in the index are companies like Kumho Electric, DYP, Hyosung TNC, Hannong Chemicals, and Hyundai Motor.

KOSPI Index technical analysis 

KOSPI Composite Index chart | Source: TradingView 

The daily timeframe chart shows that the KOSPI Composite Index has rebounded in the past 12 months. It jumped from a low of KRW 2,276 in April last year to the current KRW 5,045.

The index has remained above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bulls remain in control for now.

The Relative Strength Index (RSI) and other oscillators like the MACD and Stochastic continued rising. Therefore, the index will likely continue rising as bulls target the key resistance level at KRW 5,200.

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Nvidia (NASDAQ: NVDA) has been steadily expanding its footprint across Europe, pouring capital into startups that align with its vision of an artificial intelligence (AI) powered future.

With hyperscalers racing to secure computing muscle, the chipmaker has positioned itself not just as a supplier but as a strategic partner.

In 2025 alone, Nvidia or its venture arm “NVentures” participated in 14 European funding rounds, a sharp increase compared to previous years.

Among the most notable deals were its investments in French AI lab Mistral, quantum computing pioneer Quantinuum, and fintech heavyweight Revolut – three names that highlight the breadth of NVDA’s ambitions across different sectors.

Why Nvidia invested in Mistral?

In September 2025, Nvidia joined a massive €1.7 billion Series C round for Mistral – a Paris-based AI startup that has quickly become one of Europe’s most ambitious labs.

The deal valued Mistral at €11.7 billion, underscoring its growing reputation as a rival to American giants like OpenAI and Google.

Nvidia’s involvement wasn’t just about money – it was a strategic bet on ensuring its GPUs remain the backbone of cutting-edge model training.

Having already backed Mistral’s Series B in 2024, NVDA doubled down to strengthen ties with a company building frontier models, reflecting its desire to anchor itself in Europe’s AI ecosystem.

Why Nvidia invested in Quantinuum?

Also in September 2025, Nvidia participated in a $600 million funding round for Quantinuum – a UK-US hybrid firm with deep roots in Europe.

The capital raise pushed Quantinuum’s valuation to roughly $10 billion, with funds earmarked for the launch of its next-gen quantum system – Helios.

Nvidia’s interest here is clear: quantum computing could eventually complement or even “disrupt” classical AI workloads – and being close to a leader in the field is a hedge against that future.

With an investment, the AI darling gained early access to potential breakthroughs while ensuring its hardware and software stack can adapt to quantum advances.

Simply put, NVDA’s participation in Quantinuum’s funding round underscores its commitment to diversify across technologies that could redefine computing itself.

Why Nvidia invested in Revolut?

This past November, Nvidia quietly bought shares in Revolut – the UK-based fintech giant valued at about $75 billion.

While the exact amount that NVDA has invested wasn’t disclosed, the deal signalled chipmaker’s intent to extend its influence beyond pure artificial intelligence labs into sectors where AI adoption is accelerating.

For Revolut, which handles millions of transactions daily, Nvidia’s expertise in machine learning and fraud detection tools is a natural fit.

For Nvidia, the partnership offers exposure to Europe’s most valuable startup and a unique chance to showcase how its technology can transform financial services.

The investment demonstrates NVDA’s wider ambition, embedding itself into industries where AI is not just experimental but mission-critical.

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Meta Platforms is preparing to test new subscription models across its social media apps, aiming to unlock additional revenue streams while expanding access to artificial intelligence-powered tools.

The plans, confirmed by a Meta spokesperson and first reported by TechCrunch, signal a broader shift toward paid features layered on top of Meta’s free core services.

The company said the subscriptions are designed to “unlock more productivity and creativity” by giving users access to exclusive features and expanded AI capabilities.

The tests are expected to roll out in the coming months across Instagram, Facebook, and WhatsApp, with each app offering a distinct set of paid tools and controls.

A premium layer across Meta’s apps

Meta said it is not committed to a single subscription strategy and will experiment with different bundles and features depending on the app.

While the core experiences on Instagram, Facebook, and WhatsApp will remain free, paid users will receive additional controls over how they share content and connect with others.

Some early indications of what these subscriptions could include have already surfaced.

According to reverse engineer Alessandro Paluzzi, the Instagram subscription may allow users to create unlimited audience lists, see which followers do not follow them back, and view Stories anonymously without notifying the poster.

Meta emphasized that these new offerings will be separate from Meta Verified, its existing paid product launched in 2023, which is aimed primarily at creators and businesses.

Meta Verified includes a verified badge, direct support, impersonation protection, and search optimization.

The company said it plans to apply lessons learned from Meta Verified to develop subscriptions that appeal to a broader audience, including everyday users.

AI agents and video tools move behind paywalls

A central component of Meta’s subscription push is artificial intelligence.

The company plans to scale Manus, a general AI agent platform it acquired in December for a reported $2 billion, as part of its paid offerings.

Meta intends to integrate Manus directly into its products while continuing to sell standalone subscriptions to businesses.

Meta has also been spotted testing shortcuts to Manus within Instagram, suggesting deeper integration across its ecosystem.

The move comes after years of heavy spending on AI talent and acquisitions, even as Meta kept its Llama large language models open-source and freely available.

In addition, Meta plans to introduce subscriptions tied to AI-powered creative tools.

One example is Vibes, a short-form AI video experience built into the Meta AI app.

While Vibes has been free since its launch, Meta now plans to offer a freemium model, giving users basic access while charging for additional video creation opportunities each month.

Revenue ambitions and subscription fatigue risks

The subscription strategy could help Meta generate incremental revenue at a time when social media companies are seeking alternatives to advertising alone.

However, the company faces the challenge of subscription fatigue, as consumers already juggle multiple monthly services.

Competitors have demonstrated that there is demand for paid social features.

Snapchat’s Snapchat+ subscription, which starts at $3.99 per month, has grown to more than 16 million subscribers, more than doubling since early 2024.

Meta said it plans to listen closely to user feedback as it rolls out the new subscriptions.

How compelling the features prove to be may determine whether users are willing to pay for yet another digital service in an increasingly crowded subscription economy.

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Geopolitical risk has sent gold soaring past $5,000 an ounce on investor uncertainty, even as energy markets remain firmly tied to tangible supply-demand constraints, according to a new Rystad Energy update.

“The message for commodity markets heading into the week is clear. Geopolitical rhetoric remains loud, but pricing continues to respond primarily to tangible constraints on supply, trade, and policy,’ Claudio Galimberti, chief economist at Rystad, said in an emailed commentary. 

Unless escalation moves from words to actions, volatility is likely to remain concentrated in specific pockets—precious metals, weather-exposed energy markets, and geopolitically sensitive crude flows—rather than across the commodity complex as a whole.

Geopolitics, trade and volatility

The market for risk assets largely disregarded the Greenland incident, suggesting an immediate US-EU trade shock was improbable, according to Galimberti. 

This had an impact on commodities.

Brent crude prices, which had initially strengthened due to wider geopolitical unrest concerning Venezuela and Iran, softened as the chances of near-term transatlantic trade disruption rose. 

However, prices recovered as the situation subsequently de-escalated.

Crude prices remain sensitive to incremental supply risks, largely due to ongoing renewed US sanctions pressure on Iran, which continues to underpin the oil market.

A noticeable trend among middle powers to diversify economic ties was highlighted by Canadian Prime Minister Mark Carney’s proposal for “variable geometry” alliances, focusing on enhancing supply-chain resilience and energy security instead of rigid political alignment. 

However, the tone sharply escalated when US President Donald Trump threatened to impose 100% tariffs on Canada if Ottawa proceeded to ratify a trade agreement with China. 

Furthermore, the week saw a tense period of escalation and subsequent de-escalation between the US and Europe concerning the sovereignty of Greenland, an issue that momentarily brought the two economic blocs to the brink of a trade war.

Energy markets

The focus will continue to be on energy markets. 

“Oil traders will monitor any concrete follow-through on Iran sanctions enforcement and signals from OPEC+ members, while natural gas markets remain highly exposed to weather risks,” Rystad Energy said in the update. 

The recent spike in US gas prices, driven by an extreme winter storm, underscores how quickly fundamentals can overwhelm broader macro narratives when supply-demand balances tighten.

Commodity pricing in the near term will be significantly influenced by both macroeconomic data and upcoming policy decisions, the Norway-based energy intelligence company said. 

Fed and macro-financial split

Attention will be focused on the Federal Reserve’s guidance following its expected decision to keep rates steady this week, particularly comments from Chair Powell. 

Given that US growth has exceeded expectations and inflation is tracking forecasts, markets have scaled back anticipation for immediate rate cuts. 

For commodity markets, this means the US dollar, real interest rates, and overall liquidity remain key variables, Rystad said. 

A continued restrictive stance from the Fed would likely limit gains in cyclical commodities, whereas any indication of a more flexible approach could bolster energy and industrial metals.

“Precious metals tell a different story,” Galimberti said. 

The sustained demand for gold, now exceeding $5,000 per ounce, and silver, having risen well above $100, is a direct result of investors seeking hedges against significant policy uncertainty, growing concerns over fiscal dominance, and increasing doubts regarding the independence of the Federal Reserve.

This divergence highlights an important theme for the coming week: commodity markets are increasingly bifurcated between those driven by physical balances (e.g., natural gas) and those responding to macro-financial risk (e.g., gold).

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Rolls-Royce share price has pulled back in the past few weeks, moving from the all-time high of 1,306p on January 13 to the current 1,235 as some investors started booking profits. 

US flight cancellations and Middle East tensions

It retreated by over 1.4% on Monday after airlines cancelled thousands of flights in the United States because of the large snowstorm. 

These cancellations will likely have a minor impact on Rolls-Royce Holdings, a company whose revenue growth depends on flight hours.

On the positive side, there are signs that the situation is normalizing, with Sean Duffy, the Transportation Secretary, predicting normal conditions on Wednesday.

Rolls-Royce share price has also retreated amid the rising tensions in the Middle East that may impact the aviation sector. Donald Trump has sent an armada to the Middle East and is actively considering options for Iran. A war in the region would also lead to more disruptions. 

Analysts are optimistic about its growth

City analysts believe that Rolls-Royce Holdings’ business will continue thriving in the coming years. The average estimate among these pros is that its underlying revenue for the last financial year will be £19.5 billion, much higher than what it made in 2024.

Its revenue will then jump to £21 billion this year, £23 billion in 2027, and £25 billion in 2028. This revenue growth will happen as the company’s civil aviation business booms and average flying hours jump.

Most importantly, the management’s efforts are expected to improve its profitability substantially higher over the years. For example, the free cash flow is expected to jump from £3.1 billion in 2025 to £4.5 billion in 2028, a 45% surge. 

The other notable catalyst for the Rolls-Royce share price is that GE Aerospace, its biggest competitor, published strong financial results last week. It said that its orders grew by 32%, while its adjusted revenue rose by 21% and its operating profit jumped by 25% to over $9.1 billion. 

This growth is a sign that the industry is doing well, which is a good thing for Rolls-Royce Holdings.

Is Rolls-Royce a bargain or expensive?

The main concern among analysts is that the Rolls-Royce share price surge has made it a highly overvalued company. Data compiled by Simply Wall St shows that the company is about 25% overvalued based on the discounted free cash flow (DCF) calculation. This estimate places its potential target at 987p.

However, other valuation metrics show that it is an undervalued company. It has a price-to-earnings ratio of 17.8x, lower than its other peers like BAE Systems, Babcock, and GE Aerospace. However, its forward PE ratio of 26 is higher than that of these companies. 

A potential catalyst for the company is that its small modular reactors (SMR) business will continue doing well in the coming years.

Rolls-Royce share price technical analysis

The daily chart shows that the RR stock price has formed a highly bullish pattern that may lead to a rebound. It is now forming a bullish flag pattern, which is made up of a vertical line and a descending channel. 

The stock has remained above the 50-day and 100-day Exponential Moving Averages (EMA) and the Supertrend indicator. Therefore, the most likely outlook is bullish, with the next key target being at 1,306p, its highest point this year. A move above that level will point to more gains, potentially to 1,500p this year.

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