Markets brace for Fed week as gold hits new records and USA Rare Earths jumps on government funding news

Fed week and a risk-off mood

U.S. stock futures were little changed Monday morning, January 26, 2026, as markets headed into a busy stretch featuring large-company earnings and an interest-rate decision from the Federal Reserve. Investors have been navigating heightened uncertainty linked to geopolitics and trade policy signals, helping keep volatility elevated.

Gold extended a record-setting run, with futures moving above $5,000 an ounce and continuing higher in early trading, reflecting demand for perceived safe-haven assets. The same report also noted strong moves in silver and highlighted shifting expectations about how long the surge in precious metals could last, depending on whether current tensions ease later in 2026.

USA Rare Earths surges on financing tied to industrial policy

One of the biggest single-stock movers cited in the report was USA Rare Earth (USAR), which rose sharply after announcing new government-related funding and additional financing. The company said it expects to take on proposed federal funding and a large loan connected to the CHIPS Act, alongside a private funding round, as part of a broader push to expand U.S. capacity in critical materials and chip supply chains.

The report also referenced coverage indicating the U.S. government was expected to invest a substantial amount in the company and potentially take an equity stake. That possibility drew attention because government participation can change the market’s perception of funding risk, project timelines, and strategic importance—while also raising questions about oversight, execution, and political durability across administrations.

Investors are now weighing how policy-driven capital reshapes the competitive landscape for mining, processing, and manufacturing in the United States. For companies in the rare earth ecosystem, access to low-cost financing and guaranteed demand can be a catalyst, but the operational challenge remains: building facilities on time, sourcing feedstock, and meeting technical specifications at scale.

With major earnings ahead and rates in focus, traders are likely to keep one eye on macro signals and another on headlines that could quickly reprice risk—especially if additional tariff threats or geopolitical moves change inflation assumptions or supply-chain forecasts.