Markets Under Pressure: Tariffs, Yields, and a World in Transition

Daniel Ledenev
Jan 24
6 min read

👋 Welcome Back Investors! (January 19 to 23, 2026)

This past week kept markets busy as investors reacted to a mix of corporate headlines, global bond moves, and rising geopolitical noise. Amazon made waves after announcing another round of job cuts, while a sell off in Japanese government bonds added pressure across global fixed income markets. Trade tensions also crept back into focus after President Trump threatened additional tariffs on Canada, raising fresh concerns for North American trade. At the same time, world leaders and executives gathered in Davos to discuss economic growth, geopolitics, and the growing influence of AI. Rounding out the blog, silver pushed to a new high as investors continued to look toward hard assets amid uncertainty. And yes, apologies for missing last week’s recap, we’re back on track!

🔒 Amazon Plans Thousands More Corporate Job Cuts

Amazon is preparing a second round of corporate job cuts set to begin next week as part of its broader effort to reduce its white collar workforce by roughly 30,000 roles. The layoffs are expected to be similar in size to those announced in October, when the company cut about 14,000 corporate positions, and could impact teams across Amazon Web Services, retail, Prime Video, and human resources. While Amazon previously tied workforce reductions to efficiency gains from artificial intelligence, CEO Andy Jassy has since said the cuts are not financially or AI-driven, instead pointing to internal culture and growing bureaucracy as the primary reason. If completed, the reductions would represent nearly 10% of Amazon’s corporate workforce, marking the largest round of layoffs in the company’s history, while still accounting for only a small portion of its total global employee base.

📉 Japan Bond Yields Surge to Record Highs

Japanese government bonds sold off sharply this week, sending long-dated yields to levels not seen before as investors grew increasingly concerned about fiscal policy and political uncertainty. The yield on Japan’s 40-year government bond climbed to a record high, while 10-year yields surged to their highest level since the late 1990s. The sell off came as markets reacted to proposed tax cuts that could worsen Japan’s fiscal position, alongside Prime Minister Sanae Takaichi’s decision to dissolve parliament and call a snap election. The move is closely watched globally, as higher domestic yields could reduce Japanese demand for foreign bonds and reshape international capital flows.

⚠️ Trump Threatens 100% Tariffs on Canadian Goods

Trade tensions between the U.S. and Canada resurfaced this week after President Donald Trump threatened to impose 100% tariffs on all Canadian goods if Canada were to strike a trade deal with China. The comments followed Prime Minister Mark Carney’s recent visit to China and his speech at the World Economic Forum in Davos, which was widely seen as pushback against U.S. trade pressure. Canadian officials downplayed the threat publicly, reiterating that Ottawa is not pursuing a free trade agreement with China and remains focused on diversifying trade away from the U.S. While the response from Ottawa has been measured, the threat has renewed uncertainty around Canada and U.S. trade relations and raised fresh questions about the future of CUSMA ahead of its scheduled review.

⛏️ Wall Street Competes for Advisory Roles in Potential Rio-Glencore Megadeal

Wall Street banks are lining up to advise on a potential Rio Tinto and Glencore merger, a deal that could create the world’s largest mining company with a valuation exceeding $200 billion. Rio confirmed it is in talks to acquire “some or all” of Glencore through an all share transaction, triggering intense competition among advisers eager to secure a role in what could generate more than $100 million in advisory fees if completed. Under UK takeover rules, Rio has until February 5 to make a formal offer or walk away. While neither company has officially named advisers, sources say JPMorgan is well positioned to advise Rio as its corporate broker, with UBS also in the mix, while Citi maintains close ties to Glencore from past transactions. The talks come as global M&A activity accelerates, supported by lower interest rates and looser regulatory scrutiny, making conditions attractive for large cross border deals. Still, there is no certainty the discussions will result in a transaction, and advisers risk walking away with minimal fees if the deal collapses, as previous Rio-Glencore merger talks did more than a decade ago.

🌍 Davos 2026 Highlights Global Tensions and Shifting World Order

This year’s World Economic Forum in Davos was dominated by escalating geopolitical tensions and growing concern over the stability of the global economic and political order. U.S. President Donald Trump drew significant attention with remarks on tariffs, trade relations, and Greenland, unsettling European allies and reinforcing fears of rising unilateralism. European leaders, including France’s Emmanuel Macron, warned that the world is drifting away from rules based cooperation, while Canada’s Prime Minister Mark Carney described the current moment as a structural rupture rather than a temporary transition. Security concerns also featured prominently, with NATO officials urging leaders not to lose focus on the war in Ukraine amid broader trade and diplomatic disputes. Alongside geopolitics, discussions on artificial intelligence highlighted risks to white-collar employment, with executives cautioning that AI-driven productivity gains could come with major workforce disruptions if not managed carefully.

🥈 Silver Breaks $100 as Safe Haven Demand Surges

Silver prices surged to a historic high this week, breaking above $100 an ounce for the first time ever as investors piled into precious metals amid heightened geopolitical uncertainty and expectations of U.S. interest rate cuts. The move came alongside another record for gold, which climbed toward the $5,000 level as demand for non-yielding safe haven assets accelerated. Analysts pointed to ongoing tariff concerns, low physical liquidity in the London market, and persistent supply shortages as key drivers behind silver’s rapid rise, with prices up more than 200% over the past year. The rally has also been supported by central bank buying, a gradual shift away from the U.S. dollar, and growing confidence that global monetary policy will turn more accommodative later in 2026, reinforcing precious metals’ role as portfolio hedges during periods of economic and political instability.

👀 Stocks to Watch: What This Week’s Moves Reveal

Markets pushed through another volatile week shaped by trade tensions, global rate shifts, geopolitical uncertainty, and renewed focus on AI and defense spending. From rising bond yields in Japan to tariff risks in North America and ongoing debates at Davos, these four stocks captured the week’s dominant cross-currents:

NVIDIA (NVDA | 0.8%) — Continued to attract strong investor interest as artificial intelligence remained a central theme at Davos, with global leaders and executives emphasizing AI’s long-term impact on productivity and labor markets. Ongoing demand for high-performance computing and AI infrastructure continues to position semiconductor leaders as key beneficiaries of structural tech investment.
Toyota Motor (TM | 2.2%) — Came under pressure as Japanese bond yields surged to multi-decade highs, strengthening concerns around higher domestic borrowing costs and tighter financial conditions. Rising yields have renewed focus on Japan-based exporters’ sensitivity to currency moves and shifts in domestic monetary expectations.
Barrick Gold (GOLD | 4.8%) — Benefited from continued inflows into precious metals as investors sought protection amid geopolitical uncertainty and elevated global debt levels. Strong bullion prices have improved cash flow visibility for major producers and reinforced gold’s role as a portfolio hedge.
Canadian Pacific Kansas City (CP | 0.4%) — Moved into focus as renewed U.S. tariff threats toward Canada revived uncertainty around North American trade flows. Rail and logistics firms remain sensitive to changes in cross-border trade policy and broader shifts in supply-chain strategy.

🛎️That’s a Wrap!

Markets wrapped up the week with a cautious but steady tone as investors weighed renewed trade tensions, rising global bond yields, and shifting geopolitical dynamics. Japan’s bond sell off pushed yields to multi decade highs, raising questions around global capital flows, while renewed U.S. tariff threats toward Canada added uncertainty to North American trade relations. At the same time, discussions at Davos highlighted concerns around a changing world order, AI’s growing role in the global economy, and the durability of international cooperation. Safe haven demand remained a key theme, with precious metals surging as investors sought protection amid policy and geopolitical risk. With volatility elevated and major macro and policy questions still unresolved, markets ended the week constructive but selective, as attention turns to how early year themes continue to develop.

Until then, stay focused and stay curious. Catch you next week 👋