Fed officials support steady rates; strong demand for Google bonds; Robinhood shares drop post-Q4 earnings.

Federal Reserve Officials Support Steady Rates

Hawkish Stance on Interest Rates

Two Federal Reserve officials, the Presidents of the Cleveland and Dallas Fed, expressed a hawkish view, suggesting that interest rates may remain unchanged for an extended period unless there are significant signs of weakness in the U.S. labor market to prevent inflation from rising again.

Rising Consumer Debt Defaults in the U.S.

Record High Default Rates

A report from the New York Fed indicates that the proportion of overdue household debt in the U.S. rose to 4.8% in Q4 2025, the highest level since 2017, primarily driven by increased defaults among low-income groups and younger borrowers, particularly in mortgage loans.

Trump Considers Military Action Against Iran

Potential Deployment of Aircraft Carrier

President Trump stated he is contemplating sending another aircraft carrier strike group to the Middle East if negotiations with Iran fail, preparing for possible military action.

U.S. Government Faces Potential Shutdown

Funding Gaps Looming

Following a recent brief government shutdown, another shutdown is anticipated as funding for the Department of Homeland Security is set to expire, raising concerns about ongoing negotiations.

China’s Central Bank Maintains Loose Monetary Policy

Focus on Economic Stability

The People's Bank of China emphasized the continuation of a moderately loose monetary policy to promote stable economic growth and reasonable price recovery, adapting to domestic and international economic conditions.

AI Token Consumption Expected to Surge

Long-term Growth Projections

J.P. Morgan predicts that despite the intense competition among tech giants during the Spring Festival, the structural changes in consumer behavior will lead to a significant increase in token consumption, with a projected annual growth rate of around 330% from 2025 to 2030.

Record Trading Volume in U.S. Stock Market

January Trading Milestone

The average daily trading volume in the U.S. stock market reached a record $1.03 trillion in January, a 50% increase compared to the same period last year.

Mixed Performance in Major Indices

Dow Jones Hits New High

On Tuesday, the Dow Jones rose slightly, reaching a new closing high, while the S&P 500 and Nasdaq saw declines.

Google Raises Nearly $32 Billion in Bond Offering

Record Demand for Bonds

Alphabet, Google's parent company, is set to raise approximately $32 billion through a bond offering, with significant oversubscription reported.

Coca-Cola Reports Steady Revenue Growth

Q4 Financial Results

Coca-Cola announced a 2% year-over-year increase in Q4 revenue, reaching $11.8 billion, with full-year revenue also growing by 2% to $47.9 billion.

Spotify Sees Record User Growth

Successful Price Increase Strategy

Spotify reported a 200% increase in net profit for Q4, driven by a successful price increase strategy, with active users reaching a record 751 million.

Disney Returns to Investment-Grade Bond Market

Financing Amid Lower Spreads

Disney has re-entered the investment-grade bond market for the first time since 2020, aiming to lock in financing costs as borrowing spreads decrease.

Notable Stock Movements

Major Buy and Sell Actions

Recent trading saw significant net purchases of Meituan and CNOOC, while Tencent experienced notable sell-offs.

Upcoming Economic Data Releases

Key Reports to Watch

China will release January CPI and PPI data, while the U.S. will announce unemployment rates and non-farm payroll data later this week.