Markets, earnings and deals reshape global investing

Global markets churn as Wall Street volatility spills into Asia

Asian equities were mostly lower after a turbulent U.S. session that featured Microsoft’s steepest sell‑off since 2020 and sharp swings in major indices. Tokyo’s Nikkei 225 slipped 0.5% as AI‑linked chip and equipment names such as Advantest and Disco declined, while Hong Kong’s Hang Seng and Shanghai’s Composite each fell more than 1%. Australia’s S&P/ASX 200 and Taiwan’s benchmark also retreated, though South Korea’s Kospi bucked the trend, rising 1% and extending record highs. In the U.S., the S&P 500 closed down 0.1% after being up near record territory and down as much as 1.5% intraday, the Dow edged higher and the Nasdaq lost 0.7%.

Microsoft’s 10% drop weighed heavily on U.S. benchmarks despite the company posting better‑than‑expected revenue and profit, as investors focused on rising AI and cloud investment spending and questions about Azure growth. Tesla fell 3.5% after reporting higher‑than‑expected profit but sharply lower earnings than a year earlier, as investor attention remained on its robotaxis and robotics ambitions amid weak vehicle sales. Offsetting some of the pressure, Meta Platforms surged 10.4% after topping profit forecasts while reiterating significant AI investment plans, IBM gained 5.1% on better‑than‑expected results, and Southwest Airlines jumped 18.7% after outlining a 2026 earnings forecast that exceeded expectations, helped by new baggage fees and assigned seating.

Commodity markets showed similar cross‑currents. Oil fell more than $1 a barrel in Asian trading after a recent run‑up, while gold and silver eased from record levels but remained on track for their strongest month in decades. Spot gold, which briefly touched $5,594.82 an ounce, is up more than 24% so far in January and heading for its biggest monthly gain since 1980, as investors bought the metal amid geopolitical tensions, dollar weakness earlier in the month and safe‑haven demand. Silver, platinum and palladium also posted outsized monthly gains, with UBS lifting its gold price targets through 2026 and citing stronger‑than‑expected investment demand.

Earnings season highlights AI, data centers and premium brands

Corporate results underscored several powerful themes: AI infrastructure demand, premium consumer spending, and the resilience of defense and industrial investment. Apple reported its best‑ever iPhone sales, with quarterly iPhone revenue of $85 billion, roughly $7 billion above analyst expectations, and said iPhone 17 Pro and Pro Max models and higher memory configurations pushed average selling prices to about $1,032 in the fourth quarter of 2025. Apple forecast up to 16% revenue growth for the March quarter, supported by 38% year‑on‑year iPhone growth in Greater China and what it called “staggering” global demand for the iPhone 17 line.

Caterpillar reported record fourth‑quarter sales and revenues of $19.1 billion, up 18% year‑on‑year, and record full‑year sales of $67.6 billion. Backlog climbed 71% to a record $51 billion, driven by robust orders across Construction Industries, Resource Industries and Power & Energy. Data‑center power demand lifted Power Generation sales by 44% in the quarter and more than 30% for full‑year 2025, including a 2 GW natural‑gas genset order for the Monarch Compute Campus. Tariffs, however, remain a headwind: Caterpillar absorbed a net $1.7 billion tariff impact in 2025 and expects about $2.6 billion in incremental tariff costs in 2026, which it said will keep adjusted margins near the bottom of its target range despite expected sales growth.

Lockheed Martin’s shares rose more than 4% after the company reported a 9% jump in fourth‑quarter sales to $20.3 billion, with broad‑based growth across missiles and fire control, rotary and mission systems, space and aeronautics. Management said recent U.S. operations in Venezuela highlighted the role of its F‑35 fighters, RQ‑170 drones and Black Hawk helicopters, and announced an agreement with the U.S. military to increase annual THAAD interceptor production from 96 to 400 units. For 2026, Lockheed forecast around 5% sales growth from 2025’s $75 billion base and $6.5 billion to $6.8 billion in free cash flow.

Tech, infrastructure and consumer names lift guidance for 2026

Several mid‑ and large‑cap companies raised their 2026 outlooks on strong demand linked to AI, data centers, and branded consumer products. Celestica delivered record fourth‑quarter 2025 revenue of $3.65 billion, up 44% year‑on‑year, driven by 64% growth in its Connectivity & Cloud Solutions segment on 800G networking ramps and AI/ML compute programs with hyperscalers. The company lifted its 2026 guidance to $17 billion in revenue and $8.75 in adjusted EPS and outlined a sharp increase in capital spending to about $1 billion in 2026 to expand sites in Texas, Thailand, Mexico and Japan to support 800G and 1.6T networking and AI hardware programs.

Dolby Laboratories reported first‑quarter fiscal 2026 revenue of $347 million and non‑GAAP EPS of $1.06, both above guidance, and raised full‑year revenue and EPS targets to $1.4–$1.45 billion and $4.30–$4.45, respectively. Management highlighted growth in automotive and TV deployments of Dolby Atmos and Dolby Vision, new integrations into Qualcomm’s Snapdragon automotive platform, and broader mobile and streaming adoption, including Meta adding Dolby Vision support across Facebook and Instagram. Deckers Outdoor, owner of UGG and HOKA, posted a 7% rise in fiscal third‑quarter revenue to $1.96 billion and an 11% increase in EPS to $3.33, driven by 18% HOKA growth and 5% UGG growth. Despite warning of an unmitigated $110 million tariff hit for fiscal 2026 (net $25 million after pricing and timing), Deckers raised full‑year revenue and EPS guidance and said it expects HOKA’s fourth‑quarter revenue to grow 13–14% to its largest quarterly level ever.

Industrial and infrastructure operators also reported strong finish‑of‑year trends. Dover said fourth‑quarter 2025 organic revenue grew 5% with consolidated bookings up more than 10% and posted adjusted EPS of $9.61 for the year, up 16%, while issuing 2026 EPS guidance implying double‑digit growth. Carpenter Technology reported record quarterly operating income of $155 million for its fiscal second quarter 2026 and raised full‑year operating income guidance to $680–$700 million, citing strengthening aerospace and defense demand, constrained nickel‑based superalloy supply and pricing tailwinds. Brookfield Infrastructure Partners reported 2025 funds from operations of $2.6 billion, up 10% on a normalized basis, and raised its annual distribution by 6%, pointing to rapid growth in its data center platform, which now has about 3.6 GW of development potential and contracted capacity exceeding 2.3 GW.

Capital markets stay active with IPOs, offerings and M&A

Equity and deal activity remained brisk across geographies. In North America, multiple special purpose acquisition companies priced enlarged initial public offerings on Nasdaq, including M EVO Global Acquisition Corp II with a $270 million raise and Muzero Acquisition Corp with a $175 million offering, both targeting critical minerals and technology‑enabled businesses. In Ukraine, Kyivstar launched a secondary offering of 12.5 million shares at $10.50 each, all sold by existing shareholders including VEON Amsterdam; the telecom operator is not issuing primary shares in the deal.

On the corporate side, Envision Energy signed a 128 MW nearshore wind turbine supply contract with Vietnam’s REE Group for projects in Vinh Long Province that will feature sixteen EN‑226/8.XMW turbines, described as the largest single‑turbine capacity nearshore projects in Vietnam and Southeast Asia, with grid connection targeted by October 2026. In aviation and energy, Anfield Energy amended a credit facility with Extract Advisors to support its planned acquisition of B.R.S. Inc., while agreeing to issue bonus shares and warrants. In financials, Blackstone reported record 2025 results with $240 billion of inflows and nearly $1.3 trillion in assets under management, and highlighted an improving IPO and M&A environment, while Bread Financial and Axos Financial detailed capital return and deposit growth strategies against a backdrop of stable credit metrics and modest loan growth expectations for 2026.