As the trading week begins, investors are closely watching major developments, including President Donald Trump's new tariffs, upcoming inflation data, and Federal Reserve Chair Jerome Powell's testimony before Congress. Additionally, key corporate earnings and record-high gold prices are shaping market sentiment.

1. Trump's Tariffs & Trade Tensions

📌 President Trump plans to impose 25% tariffs on steel and aluminum imports, with reciprocal tariffs following shortly after.
📌 Key steel exporters to the U.S.: Canada, Brazil, Mexico, South Korea, Vietnam.
📌 China retaliation? Trump's move follows the recent 10% tariff hike on Chinese goods, with Beijing already responding with countermeasures.

🔹 Market Impact:

• Potential higher costs for U.S. manufacturers, leading to inflationary pressures.
• Increased trade tensions could heighten market volatility.

2. CPI Inflation Data on Wednesday

📌 The latest Consumer Price Index (CPI) report is expected to show cooling inflation on a monthly basis, while core inflation (excluding food & energy) may edge slightly higher.
📌 December CPI: 2.9% YoY—above the Fed's 2% target.

🔹 Market Impact:

• If inflation remains high, the Fed may delay rate cuts.
• A lower-than-expected CPI could boost stocks & bonds.

📊 Track key economic data:

• Economic Calendar API - Stay updated on inflation and other macroeconomic indicators.

3. Powell's Congressional Testimony (Tuesday & Wednesday)

📌 Fed Chair Jerome Powell will provide insight into the CPI report and broader monetary policy.
📌 Key Topics:

• Tariffs & Inflation - Will higher import costs delay rate cuts?
• U.S. Debt - Trump claims the $36.2T debt might not be as bad as perceived.
• Interest Rates - Fed has paused rate cuts amid inflation concerns.

🔹 Market Impact:

• Dovish tone → Rate cut optimism → Stocks rally 📈
• Hawkish stance → Higher rates for longer → Volatility rises 📉

4. Corporate Earnings Season Continues

📌 Over half of S&P 500 companies have reported Q4 results. This week, investors will watch:

• 🍔 McDonald's (NYSE: MCD)
• 🥤 Coca-Cola (NYSE: KO)
• 📡 Cisco Systems (NASDAQ: CSCO)

📌 Tech giants have already highlighted AI investments, but Nvidia's (NASDAQ: NVDA) earnings later this month will be the next major catalyst.

📊 Analyze company earnings:

• Earnings Calendar API - Stay ahead of earnings trends.

5. Gold Hits Record Highs

📌 Spot gold surged 1.4% to $2,899.26 per ounce—approaching $3,000.
📌 Safe-haven demand is rising as markets react to Trump's tariffs.
📌 U.S. Dollar strength has slowed gold's rally, but inflation concerns could push gold even higher.

🔹 Market Impact:

• Inflationary concerns + rate cut uncertainty → Bullish for gold
• Stronger dollar + higher rates → Gold correction risk

Final Thoughts

📌 Investors are closely watching CPI inflation, Powell's testimony, and earnings reports for market direction.
📌 Trade tensions and tariffs could increase volatility, while gold remains a hedge against uncertainty.