Mon, Jan 26, 2026

The S&P 500 reached a new all-time high today, rising 0.5% to 6,950.23. Simultaneously, the US dollar fell to a nearly four-year low against a basket of foreign currencies. This is a classic melt-up. Equities are rising in nominal terms as investors seek to hedge against the debasement of the underlying currency.

The flight to hard assets was evident across the board. Gold surpassed $5,100 per ounce, setting a new record. Silver surged 14% in a single session before settling. Bitcoin and other non-sovereign assets are bidding higher as liquidity seeks exits from the greenback. The market is pricing in a regime of sustained dollar weakness, using equities and commodities as a store of value.

Meanwhile, capital flows are aggressively favoring sectors aligned with the new administration’s industrial and geopolitical priorities.

The global trade architecture is reorganizing around the US, rather than through it.

Domestic stability remains a key variable for market risk.

The data indicates a structural shift in valuation metrics.

Donald John Trump's trade policy has been a splash of cold water in his sizzling face. High stock prices and record gold values are communicating the same message: the market demands a premium to hold US dollars. Investors continue to rotate out of cash and into any asset that can maintain purchasing power in a hostile environment.