Weekly Market Recap

WEEKLY INVESTMENT RECAP Week Ending January 31, 2026

LAST WEEK IN REVIEW

Markets delivered a historic milestone this week as the S&P 500 briefly touched 7,000 for the first time, though finished relatively flat amid mixed earnings and significant policy developments. The S&P 500 rose 0.3% to 6,969.01, the Nasdaq gained 0.4% to 23,685.12, and the Dow climbed 0.9% to 49,370.97.

Early Week Strength

The week began positively with markets reaching new all-time highs ahead of major technology earnings and the Federal Reserve meeting. On Wednesday, the S&P 500 briefly crossed 7,000 intraday before pulling back. The Fed left rates unchanged at 3.50%-3.75% as expected and upgraded its economic growth assessment, with Chairman Powell maintaining a balanced tone on future policy.

Earnings Season

Four of the Magnificent Seven companies reported this week—Meta, Microsoft, Tesla, and Apple—delivering mixed results that contributed to increased volatility, particularly in technology stocks. Beyond megacap tech, earnings have been strong overall. Of the 64 S&P 500 companies that have reported, 82.8% beat earnings estimates with total earnings up 17.5% year-over-year.

Notable standouts included Seagate Technology surging 19% on strong AI infrastructure demand, Southwest Airlines jumping 19% on solid 2026 profit guidance, and Royal Caribbean gaining 18% on robust consumer spending.

Friday's Volatility

Markets sold off Friday following President Trump's announcement that he would nominate Kevin Warsh as Federal Reserve Chair when Powell's term expires in May. The S&P 500 and Nasdaq declined 0.4% and 0.9% respectively. The nomination faces potential Senate opposition and adds uncertainty to monetary policy expectations. Gold reversed sharply, dropping 4% on the news.

Economic Data

Fourth-quarter GDP showed solid economic expansion in the final quarter of 2025. Initial jobless claims remained low at 209,000, continuing to show labor market resilience. The PCE Price Index remained moderately elevated, supporting the Fed's cautious approach to future rate adjustments.

THE WEEK AHEAD - February 2-6th, 2026

Next week features a lighter earnings calendar but critical economic data, headlined by the January employment report on Friday, February 7. This report will include annual benchmark revisions to payroll data and could lead to meaningful revisions to historical employment figures.

Key Economic Reports:

• Monday: ISM Manufacturing Index

• Tuesday: JOLTS Job Openings, Trade Balance

• Wednesday: ADP Employment Report, ISM Services Index

• Thursday: Initial Jobless Claims, Productivity & Costs

• Friday: Employment Situation (Nonfarm Payrolls, Unemployment Rate)

The ISM surveys and JOLTS data will provide insight into business conditions and labor demand, while the ADP report will preview Friday's official employment numbers.

What We're Watching

Despite Friday's decline, market fundamentals remain constructive with strong earnings growth and healthy economic data. However, elevated valuations, the potential Fed leadership change, and ongoing geopolitical tensions warrant continued prudence. Market breadth continues to show healthy participation beyond megacap technology stocks.

We continue to emphasize maintaining well-diversified portfolios aligned with your individual goals and avoiding reactionary decisions based on short-term headlines.

Please don't hesitate to reach out with any questions.

Weekly Market Recap Link

 Disclosures This material is for informational purposes only and is not investment advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. Investing involves risk, including loss of principal. Asset allocation and diversification do not ensure a profit or protect against loss. Please review your specific circumstances with us before making any changes to your portfolio.