Tonight's Highlights | US Stock Futures Slightly Lower, US Rare Earth Stock Surges Over 20% Premarket
On Monday premarket, US stock index futures showed limited movement: Dow futures and S&P 500 futures hovered near flat, while Nasdaq 100 futures dipped modestly. European indices were mixed.
Amid rising political and fiscal risks, investors flocked to safe-haven assets. Gold prices surged sharply on Monday, hitting a fresh all-time high above $5,100 per ounce. Silver futures jumped 8%, pushing silver well above $100 per ounce.
Threats of tariffs on Canada and the risk of another US government shutdown added fuel to this historic rally in gold and silver.
Last week, US federal immigration officers shot and killed an American citizen in Minnesota for the second time this month, sparking widespread outrage and heightening fears of a potential government shutdown.
Several Democratic senators stated they would block a $1.2 trillion government funding bill if it includes funding for the Department of Homeland Security (DHS). A source familiar with Senate Republican leadership indicated DHS funding would not be removed.
The dollar weakened against a basket of currencies, primarily due to a sharp yen appreciation. Signals from US and Japanese authorities suggested readiness for intervention to support the yen. The yen's rally began last Friday and continued into Monday morning.
USA Rare Earth shares surged over 20% premarket (peaking as high as 60% intraday earlier), following news of an investment and cooperation agreement with the US government.
Company News
USA Rare Earth Secures Up to $3.1 Billion in Total Financing to Accelerate Domestic Supply Chain
On January 26, USA Rare Earth announced a non-binding letter of intent (LOI) with the US Department of Commerce under the CHIPS and Science Act, totaling $1.6 billion — including $277 million in proposed federal grants and $1.3 billion in proposed senior secured loans (subject to due diligence, final agreements, customary closing conditions, and approvals).
Separately, the company raised $1.5 billion through a private investment in public equity (PIPE) led by Inflection Point, with participation from several major mutual fund groups.
EU Launches Formal Investigation into X Platform
On January 26, the European Commission announced a new formal investigation into Elon Musk's social media platform X under the Digital Services Act (DSA), focusing on risks potentially posed by its built-in AI chatbot Grok (including issues around manipulated or sexually explicit content generated by the tool).
GSK's Arexvy RSV Vaccine Approved by EU for All Adults
On January 26, GlaxoSmithKline announced that the European Commission has approved its respiratory syncytial virus (RSV) vaccine Arexvy for adults aged 18 and older. It was previously authorized for adults 50–59 at increased risk of RSV and those 60+. GSK continues to seek expanded indications in the US and Japan.
SoftBank Reportedly Ends Talks to Acquire US Data Center Operator Switch
Reports indicate SoftBank has halted negotiations to acquire US data center operator Switch, though discussions on partial investment or cooperation continue. Earlier this month, SoftBank finalized a $3 billion deal for a majority stake in Switch held by investment firm DigitalBridge.
QatarEnergy Signs Long-Term Helium Supply Agreement with Air Liquide
QatarEnergy and France's Air Liquide have signed a long-term purchase agreement for Qatar to supply 300 million cubic feet of helium annually.