Overnight US stocks | Hawks are expected to sharply increase their impact on risky assets, with the three major indices falling, the US dollar surging, and gold and silver prices plummeting.

On Friday, the three major indices fell, as traders bet that President Trump's nomination of Wash as Fed Chairman would make the central bank's stance more hawkish. Meanwhile, the US December PPI rose by 0.5% month-on-month, the largest increase in three months, and the core index's year-on-year growth rate also climbed to a year-high, exceeding market expectations. The US dollar saw its largest single-day increase since July last year, while silver experienced its largest single-day decline in history. [US Stocks] As of the close of trading, the Dow Jones fell by 179.09 points, a decrease of 0.36%, to 48,892.47 points; the Nasdaq fell by 223.31 points, a decrease of 0.94%, to 23,461.82 points; the S&P 500 fell by 29.98 points, a decrease of 0.43%, to 6,939.03 points. For the week, the Dow fell by 0.42%, the S&P 500 rose by 0.34%, and the Nasdaq fell by 0.17%. In January, the Dow rose by 1.73%, while the S&P and Nasdaq rose by 1.37% and 0.95% respectively. Intel Corporation (INTC.US), Micron Technology, Inc. (MU.US) fell by over 4%, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US), Meta (META.US) fell by nearly 3%, SanDisk (SNDK.US) briefly turned lower but ultimately closed up by 6.85%; Apple Inc. (AAPL.US) rose against the trend by 0.46%. [European Stocks] The Germany DAX30 index rose by 268.78 points, an increase of 1.11%, to 24,562.02 points; the UK FTSE 100 index rose by 57.14 points, an increase of 0.56%, to 10,228.90 points; the France CAC40 index rose by 55.17 points, an increase of 0.68%, to 8,126.53 points; the Euro Stoxx 50 index rose by 58.71 points, an increase of 1.00%, to 5,950.66 points; the Spain IBEX35 index rose by 321.24 points, an increase of 1.83%, to 17,898.54 points; the Italy FTSE MIB index rose by 476.90 points, an increase of 1.06%, to 45,552.50 points. [Cryptocurrency] Bitcoin returned above $84,000; Ethereum fell by over 4% to $2,707.82. [US Dollar Index] The US dollar saw significant gains on Friday, marking its largest single-day increase since July, as the plummeting of gold and silver prices dragged down currency exchange rates like the Australian dollar and the Swiss franc. The US Dollar Index DXY ended the month with a gain of approximately 0.9%. During this period, the index experienced significant volatility due to Trump's policies. The US dollar rebounded on Friday, benefiting from the drop in precious metal prices and the influence of Trump's choice of Wash as Fed Chairman, but the index still fell by about 1.4% in January, making it the worst performing month since August. "Overall, the market sentiment is somewhat nervous," said Catherine Brucker, head of research at XTB. "The depreciation of the US dollar trade has been temporarily put on hold, but this does not mean that the trade is over." The Australian dollar, Swiss franc, and Swedish krona (currencies influenced by precious metal prices) led the G10 currencies lower. Silver prices saw the largest single-day drop ever, while gold prices saw their largest drop since the early 1980s, ending the previous uptrend. [Metals] Spot gold plummeted by nearly 13% intraday, marking the largest intraday decline since the early 1980s, exceeding the decline during the 2008 financial crisis. Spot gold ultimately fell by 9.14%, to $4,885.85, while spot silver plummeted by over 35% intraday, marking the largest decline ever recorded. Spot silver ultimately fell by 26.19%, to $85.266. The COMEX silver futures for February delivery rose by $8.1560 per ounce to $78.290 per ounce this month, an increase of 11.63%, marking the ninth consecutive month of gains and setting a record for the longest consecutive increase. COMEX silver futures have risen by $45.759 per ounce, an increase of 140.66% over the past nine months, making it the largest cumulative increase over a nine-month period since April 2011. However, silver futures prices fell by $22.712 this week, a decline of 22.49%, marking the largest weekly decline since September 23, 2011 (in US dollars), ending the three-week streak of gains. Analyst Adam Button from the financial website investinglive stated that the precious metal party has come to an end, and for gold, he finds it difficult to imagine the price falling below $4,000. If it does reach that level, he believes that some strong investors will step in to buy, but he will not make any rash statements before that. For holders? This is a difficult choice. This market situation may quickly turn around or experience significant volatility, and making panic decisions on a Friday evening is not wise. Will we see a further sell-off similar to "Black Monday"? Personally, I believe that this is unlikely to happen unless there is a triggering factor beyond the Iran agreement. [Crude Oil] Light crude oil futures for March delivery on the New York Mercantile Exchange rose by $2.21 to close at $65.42 per barrel, an increase of 3.5%; Brent crude oil futures for March delivery rose by $2.31 to close at $70.71 per barrel, an increase of 3.38%. [Macro News] Hassett Supports Wash's Nomination and Calls for Fed to Ease Monetary Policy. Kevin Hassett, Chairman of the White House Council of Economic Advisers, stated that with the decrease in the fiscal deficit, market interest rates should correspondingly decrease. He also criticized the Fed for not cutting interest rates this week, calling it a wrong decision, and pointing out that inflation is close to the target level. Hassett emphasized that the government's responsibility is to create a more favorable policy environment for the Fed, and he is confident in the U.S. achieving high economic growth under low inflation conditions. Additionally, Hassett expressed high respect for Wash, the nominee for Fed Chairman, and stated that the White House is confident that Wash's nomination will be quickly confirmed. Although he was not nominated for Fed Chairman, he did not feel disappointed. Fed Governor Mersalim: Unwilling to Support Further Interest Rate Cuts. Fed Governor Mersalim stated on Friday that given that the inflation rate has been consistently above the Fed's target level of 2%, he is not too eager to support further interest rate cuts. Mersalim stated that he agreed with the Fed's decision this week to keep interest rates unchanged, and believes that with interest rates at 3.5% to 3.75%, the Fed's target rate is no longer high enough to significantly suppress economic activity. Continual price increases should prevent the Fed from lowering rates to support the economy. Mersalim said, "Given that inflation is above the target level and economic risks are roughly balanced, I believe it is not appropriate to lower rates to an accommodative range at this time." Mersalim also pointed out that attempting to alleviate labor market pressure by lowering the Fed-controlled short-term interest rates may have unintended consequences. He stated that this move could raise concerns about future inflation and push up long-term rates, which are important factors in determining mortgage and business borrowing costs. Citi: Half of the Risks Supporting Gold May Ebb Later This Year. Citi stated on Friday that the investment thesis for gold is supported by a series of interwoven political and economic risks, but around half of these risks may ebb later this year. The bank estimates that most of the risks priced into gold prices will not truly manifest by 2026, or if they do, they will not be sustainable beyond 2026. The bank added, "We see the Trump administration working to achieve an 'American-style gold stability' during the 2026 mid-term elections, and we also see the conflict between Russia and Ukraine coming to an end, and the situation in Iran will ultimately ease, which will mean that risks relative to current levels will decrease. If Wash's nomination is approved, this will further confirm our long-standing view that the Fed still maintains its political independence. And this view is another medium-term negative factor affecting gold prices." Fed Governor Milan May Attend March Meeting. Fed Governor Milan stated that it is unclear where he will go after his current acting governor term (which ends this weekend). However, he stated, "One thing is certain, and that is I will continue to serve in my current position until my successor is confirmed." Milan stated that whether he will attend the Fed's March meeting depends on the Senate's confirmation timetable for Wash's nomination. If the confirmation process takes longer than six weeks, then he will attend. Fed Governor Waller: Neutral Interest Rate Level around 3%. Fed Governor Waller stated that the current interest rate range is 3.50%-3.75%, and monetary policy should be closer to a neutral level, with Waller believing that the neutral interest rate may be around 3%. Despite robust economic growth, the labor market remains weak, and Waller expects last year's weak job data to be revised downward, reflecting nearly zero job growth approaching 2025. He stated that he has heard of several companies planning layoffs in 2026, so he is quite skeptical of job growth, warning of significant risks of worsening employment. In terms of inflation, Waller pointed out that inflation rates excluding tariffs are close to the Fed's 2% target and are expected to reach that level. Although inflation has risen due to tariffs, he believes that given stable inflation expectations, monetary policy should ignore these temporary impacts. Waller voted against a 25 basis points rate cut at this week's meeting, supporting the belief that current policy is still excessively suppressing economic activity. [Stock News] CEO Plans "Bold" Acquisition to Boost GameStop Corp. Class A(GME.US) Market Cap to over $100 Billion. Ryan Cohen, CEO of US game retailer GameStop Corp. Class A(GME.US), stated that the company is considering a major acquisition, with the target possibly being a publicly listed company, with a focus on the consumer or retail sectors. He aims to transform GameStop Corp. Class A, which currently has a market cap of around $11 billion, into a "giant company with a market value exceeding $100 billion". Amazon.com, Inc. Seeks FCC Extension for Satellite Launch Deadline. Amazon.com, Inc.'s low-orbit satellite project Amazon Leo (formerly known as the "Kuiper Project") submitted an application to the Federal Communications Commission (FCC) on Friday, requesting a 24-month extension to the final deadline of "half of the constellation launched" to July 2028, or a direct waiver of this mid-term milestone requirement. The reason for the application is a scarcity of rocket resources available for launch, making it difficult to launch over 1,600 internet satellites into orbit by mid-2026. [Broker Ratings] Jefferies Financial Group Inc.: Raises Apple Inc.'s (AAPL.US) target price from $276.47 to $286.54.