This indicates that traders are unsure how to position themselves ahead of potential volatility over the weekend. Geopolitical events often occur on weekends, which keeps anxiety high for the Monday open and explains the focus on weekend risk.
Before this large rally, Gold would have been an obvious safe haven.
However, the Bullion closed down 0.70% today, while other metals saw drops of up to 4%.
US Treasuries surely were not bid today in expectation for this weekend risk (30Y US Bond down -0.50%)
The Dow Jones fell 0.2%, while the Russell 2000 rose as US credit spreads reached their lowest levels since 2007. Both the S&P 500 and Nasdaq closed flat.
Some analysts are warning about these ultra-low spreads, but no structural cracks are showing yet.
Corporate Bond Credit Spreads – Source: Bloomberg
Uncertainty remains high as evidenced by the rangebound trading across asset classes. Keep a close eye on the headlines.
Stock Market Heatmap – A confused Stocks Board
Market Close Heatmap – Source: TradingView – January 16, 2026
Producer Manufacturing firms have remained solid but for the rest, there has been virtually no sector trend today. Expect a lot of volatility next week.
Cross-Assets Daily Performance
Cross-Asset Daily Performance, January 16, 2026 – Source: TradingView
Today's action reflects a confused but uncertain Market as most assets finish down except for Oil (the true but risky hedge against Middle East geopolitical risk).
Cryptos are rebounding suddenly at the weekly close, as traders head back into the asset class.
A picture of today's performance for major currencies
Currency Performance, January 16, 2026 – Source: OANDA Labs
Today marked yet another low volatility FX session with the JPY leading and the AUD on the other side.
FX movements have been largely rangebound since 2026 – Keep a close eye on the US Dollar as it shows some signs of weakness but could also get bid in the event of a US Intervention.
