Wall Street’s Performance and Key Events from January 2026

As of February 2, 2026, Wall Street has seen decent performance over the past month. The S&P 500 gained 1.1%, the Dow Jones increased by 0.9%, and the Nasdaq Composite rose by 0.8%. However, the Russell 2000 experienced a decline, falling 0.7%.

One significant development in January was President Trump’s announcement of his intent to nominate Kevin Warsh, a former Fed Director, as the next Fed Chairman. If approved by the Senate, Warsh would take office when Jerome Powell’s term wraps up in May. Warsh has a background as an inflation hawk, having served on the Fed’s board from 2006 to 2011 under former President George W. Bush.

Several factors influenced investment performance in January, including escalating geopolitical tensions, a rebound in the U.S. dollar, unpredictable movements in precious metals, the impact of Winter Storm Fern on natural gas prices, and election speculation in Japan.

Geopolitical Concerns

At the start of the year, geopolitical issues flared up as the U.S. took action against Venezuelan leader Nicolás Maduro. Additionally, President Trump’s controversial comments about Greenland, NATO, and potential actions against Iran further fueled market anxiety.

Although Trump initially threatened new protectionist measures regarding Europe, he calmed trade war fears by unveiling the Arctic Security Framework Agreement at the Davos meeting.

Japanese Stock Market Surges

Mid-January saw Japanese stocks reach record highs following speculation that Prime Minister Sanae Takaichi might call a snap general election. Takaichi aims to leverage his party’s favorable ratings to secure a parliamentary majority, potentially leading to aggressive fiscal policies, including increased defense spending and tax cuts.

U.S. Consumer Confidence Declines

According to a report from the Associated Press, U.S. consumer confidence took a nosedive in January, dropping to its lowest point since 2014. Concerns over personal finances and the broader economy were prevalent among survey participants. Many cited inflation, trade issues, politics, and job security as their main worries.

Winter Storm Fern and Natural Gas

Late January brought Winter Storm Fern, which affected large swathes of the U.S. Economists estimated that the storm could lower GDP by 0.5 to 1.5 percentage points in the first quarter. This severe weather boosted natural gas prices as demand for heating surged. Notably, the U.S. Natural Gas Fund LP increased by 9.2% over the past month.

Precious Metals Experience Turbulence

The SPDR Gold Trust saw a 7.2% increase since the start of the year, although it fell 8.2% in the last week alone. Similarly, the iShares Silver Trust rose by 10.2% this year but took a sharp drop of 26.1% last week. The dollar’s strength following Warsh’s nomination has likely impacted the commodity market adversely.

Gold has, however, been somewhat of a safe haven, benefiting from the uncertain political climate.

Notable ETF Investment Areas

Here’s a look at some of the standout ETF investment sectors as of February 2, 2026:

• Breakwave Tanker Shipping ETF: This fund saw an impressive 92.5% increase, buoyed by robust freight rates stemming from geopolitical tensions.
• Theme Humanoid Robotics ETF: Up by 25.1%, the U.S. robotics industry shows promise with new commercial advancements and FDA approvals.
• ASML Holding Heavy ETF: This ETF rose 16.6%, helped by better-than-expected orders and a positive revenue outlook amid rising AI demand.
• Franklin FTSE Korea ETF: Up 15.5%, South Korea’s stock market saw gains due to a rally in AI chip demand and positive export figures.
• Sprott Uranium Miner ETF: This fund increased by 15.4% as U.S. uranium futures rose, driven by expectations of higher long-term demand.