Weekly Wrap

The stock market endured a volatile, headline-driven week that ultimately resolved into mixed performance across the major averages, masking notable divergence beneath the surface.

Geopolitical tensions dominated early-week trading after President Trump’s renewed tariff threats toward the EU and NATO allies sparked a sharp risk-off move on Tuesday. That session marked the market’s worst day of the year, pushing the S&P 500 (-0.4% WTD), DJIA (-0.5%), and Nasdaq Composite (-0.1%) decisively lower and briefly below key technical levels.

Midweek trading brought a partial reversal as easing rhetoric around Greenland-related tariffs, improving trade headlines, and steady inflation data helped stabilize sentiment. Gains on Wednesday and Thursday allowed the major averages to recover a portion of Tuesday’s losses, though conviction faded into Friday as breadth weakened and investors repositioned ahead of a heavy slate of mega-cap earnings.

By week’s end, performance across market segments highlighted continued selectivity. Smaller-cap indices lagged modestly, with the Russell 2000 (-0.3%) and S&P Mid Cap 400 (-0.6%) both finishing lower despite intermittent strength earlier in the week.

Sector performance reflected a clear rotation. Cyclical and rate-sensitive areas struggled, with weakness led by the financials (-2.5%), industrials (-1.6%), utilities (-2.0%), and real estate (-2.4%) sectors, while defensively-tilted and commodity-linked sectors outperformed. The energy (+3.1%) and materials (+2.6%) sectors captured the strongest gains, supported by strength in natural gas, oil-related equities, and packaging names. The communication services (+1.1%), health care (+1.1%), consumer staples (+0.9%), and consumer discretionary (+0.7%) sectors also finished the week higher.

Within growth, leadership remained uneven. The PHLX Semiconductor ETF (+0.4%) posted a modest gain despite sharp single-stock volatility tied to Intel’s earnings, while the Vanguard Mega Cap Growth ETF (-0.2%) ended slightly lower for the week after struggling to recover from Tuesday’s sell-off.

Overall, the week underscored a market still sensitive to geopolitical developments and earnings guidance, with rotation continuing beneath relatively resilient index-level performance. With several “Magnificent Seven” names reporting next week and inflation data largely stable, the market enters the new week near record levels—but with momentum now increasingly dependent on execution from its largest constituents.

• Nasdaq Composite: -0.1%
• Russell 2000: -0.3%
• S&P 500: -0.4%
• DJIA: -0.5%
• S&P Mid Cap 400: -0.6%

Monday:

Market closed for Martin Luther King Jr. Day.

Tuesday:

The stock market had its worst session of the year so far as concerns of a potential trade war between the U.S. and EU sent the S&P 500 (-2.1%), Nasdaq Composite (-2.4%), and DJIA (-1.8%) sharply lower. The S&P 500 and Nasdaq Composite both closed below their respective 50-day moving averages and finished the session in negative year-to-date territory. 

Over the weekend, President Trump called for a 10% additional tariff on eight NATO members that oppose the U.S. acquisition of Greenland.  Bloomberg reported that the EU is considering retaliatory tariffs in response. In a press conference this afternoon, President Trump said he expects things to work out with NATO but doubled down on his stance that Greenland is essential for U.S. security. The president noted he has meetings scheduled with European leaders about Greenland, and he will speak at the World Economic Forum in Davos tomorrow. 

Stocks faced broad-based selling as a result of investors' geopolitical concerns, with a notable lack of any "buy the dip" interest keeping selling the major averages charting session lows through the close. 

Ten S&P 500 sectors moved lower, with seven finishing with losses of 1.0% or wider and six finishing with losses of 2.0% or wider.

The top-weighted information technology sector (-2.9%) was the day's worst performer. NVIDIA (NVDA 178.07, -8.16, -4.38%) was a mega-cap laggard, and Oracle (ORCL 179.97, -11.12, -5.82%) and Broadcom (AVGO 332.60, -19.11, -5.43%) finished with even wider losses. 

The PHLX Semiconductor Index (-1.7%) outperformed the broader sector as Intel (INTC 48.56, +1.60, +3.41%) moved higher after HSBC upgraded the stock to Hold from Reduce. Several memory storage names, such as Sandisk (SNDK 453.12, +39.50, +9.55%), also captured gains after a Micron (MU 365.00, +2.25, +0.62%) executive stated that the AI-driven memory shortage is unprecedented and expected to persist beyond 2026, according to Bloomberg.

The consumer discretionary sector (-2.8%) finished with a similar loss, with Tesla (TSLA 419.25, -18.25, -4.17%) and Amazon (AMZN 231.00, -8.12, -3.40%) also providing weak mega-cap leadership. The Vanguard Mega Cap Growth ETF closed 2.6% lower on the day. 

Elsewhere in the sector, lululemon athletica (LULU 188.76, -13.11, -6.49%) was a considerable laggard after the U.S. Supreme Court did not issue a ruling on the legality of President Trump's IEEPA tariffs today. 

On the earnings front, 3M (MMM 156.09, -11.71, -6.98%) weighed on the industrials sector (-2.0%) after the company beat earnings estimates but issued cautious guidance, while earnings beats from Fifth Third (FITB 50.12, +0.96, +1.95%) and U.S. Bancorp (USB 54.38, -0.02, -0.05%) did little to offset broader losses in the financials sector (-2.2%). 

Only the defensive consumer staples sector (+0.1%) escaped with a gain today.  A majority of the sector's components traded higher, though a loss in Walmart (WMT 118.71, -0.99, -0.83%) limited gains. 

Outside of the S&P 500, the Russell 2000 (-1.2%) and S&P Mid Cap 400 (-1.4%) outperformed the major averages yet again, though they too faced considerable losses. 

Meanwhile, gold futures settled $170.40 higher (+3.7%) at $4,765.80/oz, as investors piled into safe havens.  The CBOE Volatility Index surged 28.8% to 20.42, highlighting the unease across the market today. 

Today's sharp selloff leaves the market on fragile footing heading into the next session, with elevated volatility and technical damage likely to keep risk appetite restrained in the near term. Tomorrow is shaping up to be another potentially consequential day, as investors will hear from President Trump at the World Economic Forum in Davos and digest the November PCE Index (Briefing.com consensus 0.2%), both of which could influence trade-related sentiment and expectations for the policy outlook.

U.S. Treasuries had a mostly lower showing to begin the week, as longer tenors retreated considerably. The 2-year note yield finished unchanged at 3.60%, and the 10-year note yield settled up six basis points to 4.30%. 

There was no economic data of note today.

Wednesday:

The stock market faced some choppy action today, though the S&P 500 (+1.2%), Nasdaq Composite (+1.2%), and DJIA (+1.2%) finished with solid gains that saw them reclaim about half of yesterday's losses. 

Today's action was defined by three distinct market-level moves. The first of these events occurred shortly before the open as investors digested commentary from President Trump at the World Economic Forum. While President Trump reiterated his stance that the U.S. needs to acquire Greenland for national security, he said that the U.S. would not use force as a means of acquisition. Equity futures spiked in response, and the major averages set off on a course of broad-based gains after the open. 

Even after the EU announced a suspension of the Turnberry Deal, which would have suspended tariffs on all US industrial goods and established a tariff-rate quota system for a large number of US agri-food products entering the EU, the major averages continued to chart session highs until just before midday. 

Stocks then faced a sharp intraday retreat without a clear catalyst that narrowed the gains of nearly every corner of the market. Mega-cap names were among the first to show signs of weakness, and the Nasdaq Composite, which had traded over 1.0% higher, briefly entered negative territory. The top-weighted information technology sector (+0.9%) also entered negative territory after trading over 1.0% higher. 

The major averages then drifted through the early afternoon with a portion of their earlier strength before the broader market saw one final sharp intraday move. 

President Trump announced that the framework of a future deal with respect to Greenland and the entire Arctic region has been formed with Mark Rutte, Secretary General of NATO. Additionally, he said he will not impose the tariffs that were set to go into effect February 1.

Stocks rallied in response, with the major averages climbing back to earlier session high levels. 

All eleven S&P 500 sectors finished higher, and seven finished with gains of 1.0% or wider. 

The information technology sector (+1.0%) had the choppiest day but finished with a solid gain. Semiconductor names once again provided strong leadership, with the PHLX Semiconductor Index finishing 3.2% higher.  Intel (INTC 54.25, +5.69, +11.72%) was one of the top-performing S&P 500 names today, posting another monster gain that seats the stock with a 47.0% gain this year. 

Only Moderna (MRNA 49.81, +6.81, +15.84%) finished higher, rallying after the company, along with Merck (MRK 111.09, +1.64, +1.50%), reported encouraging five-year data regarding their melanoma vaccine.  The health care sector (+1.8%) was a top performer and was largely resilient to the broader market swings. 

Improvements across mega-cap names such as Tesla (TSLA 431.44, +12.19, +2.91%) and Alphabet (GOOG 328.38, +6.22, +1.93%) helped the consumer discretionary (+1.6%) and communication services (+1.4%) sectors finish higher as well. The Vanguard Mega Cap Growth ETF finished 0.9% higher after entering negative territory around midday. 

The energy sector (+2.3%) was the top gainer, trading in a stable range since the morning hours. Crude oil futures settled today's session just $0.24 higher (+0.4%) at $60.60 per barrel, but the sector was propped up by natural gas settling $0.98 higher (+25.1%) at $4.88/MMBtu. Additionally, President Trump, in his WEF address, made comments highlighting the future profitability of oil production in Venezuela.  Halliburton (HAL 33.36, +1.30, +4.05%), which has risen in conjunction with developments in Venezuela, posted a solid gain after topping earnings estimates this morning. 

United Airlines (UAL 110.96, +2.39, +2.20%) also traded higher after beating earnings estimates, while Netflix (NFLX 85.36, -1.90, -2.18%) traded lower after topping estimates but issuing soft near-term guidance. 

Outside of the S&P 500, the Russell 2000 (+2.0%) and S&P Mid Cap 400 (+1.8%) followed a similar path to that of the major averages and once again slightly outperformed them. 

While today's intraday volatility reflected lingering sensitivity to geopolitical headlines, stocks ultimately finished with broad gains that helped the S&P 500 reclaim its 50-day moving average (6,832). The market now cautiously proceeds to tomorrow's session that will feature another batch of earnings reports and key inflation data in the form of the PCE Price Index. 

U.S. Treasuries climbed on Wednesday with longer tenors reclaiming roughly half of their losses from Tuesday while the short end turned slightly positive for the week. The 2-year note yield finished unchanged at 3.60%, and the 10-year note yield settled down four basis points to 4.25%.

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 14.1%; Prior 28.5%
• September Construction Spending -0.6% (Briefing.com consensus 0.0%); Prior was revised to 0.4% from 0.2%
• December Pending Home Sales -9.3% (Briefing.com consensus 0.7%); Prior 3.3%
• October Construction Spending 0.5% (Briefing.com consensus 0.2%); Prior -0.6%
  • The key takeaway from the report is that the rebound in October was driven by residential spending and specifically private residential improvements.

Thursday:

The stock market traded in a stable range today, which stands as a sharp contrast to yesterday's geopolitical headline-fueled volatility. What was similar between the two sessions, however, was that major averages advanced with relatively broad support. 

The S&P 500 (+0.6%), Nasdaq Composite (+0.9%), and DJIA (+0.6%) advanced in an orderly fashion as stocks continued yesterday's relief rally. The market showed little reaction to the Personal Income/Outlays report for October and November, which showed that the Core PCE Price Index (the Fed's preferred inflation measure) was at 2.8% year-over-year in November, up slightly from October but unchanged from September. The data should not materially affect the Fed's policy outlook, which added to today's more even-keeled backdrop. 

Some late-session profit-taking saw the major averages cede a chunk of their earlier gains, but even with the late pressure, all three indices closed above their respective 50-day moving averages. 

Sector strength was somewhat eroded by the late pressure, but still tilted positive with seven S&P 500 sectors closing at or above their baselines. 

The communication services sector (+1.6%) led the advance, supported by strong mega-cap leadership from Meta Platforms (META 647.63, +34.67, +5.66%) that masked continued post-earnings weakness from Netflix (NFLX 83.53, -1.83, -2.14%). 

The consumer discretionary sector (+1.2%) finished with a similar gain, as Tesla (TSLA 449.36, +17.92, +4.15%) was another mega-cap standout. 

All of the "magnificent seven" names finished higher today, pushing the Vanguard Mega Cap Growth ETF to a 0.9% gain today. However, the ETF remains 0.8% lower for the week following a sharp pullback on Tuesday and is still down 1.8% year-to-date. Notably, next week will see Meta, Tesla, and Microsoft (MSFT 450.86, +6.76, +1.52%) all report earnings. 

Investors are also awaiting a key earnings report after the close from Intel (INTC 54.32, +0.07, +0.13%). The stock traded flattish today but is still up an impressive 15.7% this week and a monstrous 47.2% so far in 2026.

The chipmaker group as a whole posted subdued performances today, keeping the PHLX Semiconductor Index (+0.2%) to a modest gain. However, the broader information technology sector (+0.7%) still captured a solid gain as software names such as Arista Networks (ANET 138.41, +11.12, +8.74%) and Datadog (DDOG 131.25, +7.79, +6.31%) pushed the iShares GS Software ETF (IGV) 1.6% higher. 

Meanwhile, the real estate sector (-1.1%) was the worst-performing sector, adding to this week's pressure that leaves it with a 2.7% loss. 

The defensive utilities (-0.7%), consumer staples (-0.1%), and health care (flat) sectors also underperformed as the market saw an improvement in risk sentiment today. Abbott Labs (ABT 108.60, -12.13, -10.05%) was the worst-performing S&P 500 name today after posting in-line EPS while missing on revenues and issuing downside guidance.  McCormick (MKC 61.22, -5.34, -8.02%) was another notable laggard after missing earnings expectations. 

GE Aerospace (GE 295.00, -23.50, -7.38%) rounds out the three worst-performing S&P 500 names after succumbing to some sell-the-news pressure following its own earnings report, sending the industrials sector (-0.5%) lower. 

Even with several notable retreats and some late profit-taking, the major averages posted a solid continuation of yesterday's strength. Bloomberg reported that the EU is expected to unfreeze and ratify its trade agreement with the U.S., a move that could temporarily mark an end to the geopolitical tensions that triggered Tuesday's sell-off. 

The market now faces an important test in Intel's earnings report, as the stock, along with the broader semiconductor group, has been running hot so far this year.

However, today's broad gains, easing geopolitical tensions, and steady inflation data leave the market on firmer footing as it heads into next week's slate of high-profile mega-cap earnings.

U.S. Treasuries finished Thursday in mixed fashion, as the long bond overcame its modest starting loss while the 5-year note and shorter tenors settled in the red. The 2-year note yield settled up one basis point to 3.61%, and the 10-year note yield finished unchanged at 4.25%. 

Reviewing today's data:

• Weekly Initial Claims 200K (Briefing.com consensus 200K); Prior was revised to 199K from 198K, Weekly Continuing Claims 1.849 mln; Prior was revised to 1.875 mln from 1.884 mln
  • The key takeaway from the report is that the low level of initial jobless claims substantiates the view that the labor market is still operating in a low-firing environment, which is supportive for consumer spending activity and the growth outlook.
• Q3 GDP - Revised 4.4% (Briefing.com consensus 4.3%); Prior 4.3%, Q3 GDP Deflator - Revised 3.8% (Briefing.com consensus 3.7%); Prior 3.8%
  • The key takeaway from the report is that it is a dated and little-changed report, so its market-moving capacity is nil; however, it is a headline reminder that the economy was running on the hotter side of things in the third quarter.
• October Personal Income 0.1% (Briefing.com consensus 0.3%); Prior 0.4%
• October Personal Spending 0.5% (Briefing.com consensus 0.1%); Prior 0.4%
• October PCE Price Index 0.2% (Briefing.com consensus 0.2%); Prior 0.3%
• October Core PCE Price Index 0.2% (Briefing.com consensus 0.2%); Prior 0.2%
• November Personal Income 0.3% (Briefing.com consensus 0.4%); Prior 0.1%, November Personal Spending 0.5% (Briefing.com consensus 0.4%), November PCE Price Index 0.2% (Briefing.com consensus 0.2%); Prior 0.2%, November Core PCE Price Index 0.2% (Briefing.com consensus 0.2%); Prior 0.2%
  • The key takeaway from the report is that the core PCE Price Index, which is the Fed's preferred inflation gauge, was at 2.8% in November, essentially unchanged from September. As a result, this report should not alter the Fed's outlook since the inflation picture remains largely unchanged.

Friday:

The stock market ended a rollercoaster week on a somewhat subdued note, with the S&P 500 (flat), Nasdaq Composite (+0.3%), and DJIA (-0.6%) finishing mixed as the market balanced solid mega-cap performances against relatively weak breadth. 

Seven S&P 500 sectors finished higher, though the gains were largely modest in nature. 

The materials sector (+0.9%) captured the widest gain, supported by strength in its container and packaging names such as Smurfit Westrock plc (SW 43.80, +2.02, +4.83%) and Amcor (AMCR 44.28, +1.51, +3.53%). 

Meanwhile, the consumer discretionary (+0.7%) and information technology (+0.5%) sectors performed similarly, with each sector benefitting from solid mega-cap leadership.

Microsoft (MSFT 465.95, +14.81, +3.28%) was a standout among the magnificent seven names amid a session that saw the Vanguard Mega Cap Growth ETF gain 0.6%.

NVIDIA (NVDA 187.68, +2.84, +1.54%) also traded higher despite a tough day for chipmakers that sent the PHLX Semiconductor Index 1.2% lower. Disappointing Q1 guidance from Intel (INTC 45.07, -9.25, -17.03%) saw the stock sell-off sharply, but it was arguably due for a pullback given it was up nearly 50% in 2026. 

Importantly, Microsoft, Meta Platforms (META 658.76, +11.13, +1.72%), Apple (AAPL 248.04, -0.31, -0.12%), and Tesla (TSLA 449.06, -0.30, -0.07%) all report earnings next week. 

Reaction to earnings saw Capital One (COF 217.22, -17.84, -7.59%) finish as one of the worst-performing S&P 500 names today. The stock moved sharply lower after the company missed EPS expectations and announced it has acquired Brex Inc.  The financials sector (-1.4%) ended up as the worst-performing S&P 500 sector today, facing a loss in a majority of its components. 

The industrials sector (-0.8%) also faced broad weakness, with United Airlines (UAL 107.73, -2.67, -2.42%) giving up a chunk of its previous post-earnings strength. 

Elsewhere, the defensive health care (-0.6%) and utilities (-0.4%) sectors also finished lower amid a modest rotation back into mega-cap names. 

Despite only four S&P 500 sectors closing lower, soft breadth figures highlight some weakness beneath the surface. Decliners outpaced advancers by a roughly 3-to-2 clip on both the NYSE and Nasdaq. The S&P 500 Equal Weighted Index (-0.5%) lagged its market-weighted counterpart as a result.

Outside of the S&P 500, the Russell 2000 (-1.8%) and S&P Mid Cap 400 (-1.0%) faced considerable pullbacks today. Weakness across these smaller cap indices that have substantially outperformed so far this year highlights the variance of today's session when compared to typical action so far this year. 

Still, solid performances across some of the market's heaviest components helped prevent further losses and keep the major averages mixed. The price action of these mega-cap stocks will continue to garner attention as the market heads into a week that will see four of the "magnificent seven" names report earnings. With the market still in close proximity to record high levels, impressive upside guidance will be as important as beating earnings expectations to maintain upward momentum. 

U.S. Treasuries finished a volatile abbreviated week on a slightly higher note, continuing their resilient showing after a Tuesday plunge alongside JGBs. The 2-year note yield settled down one basis point to 3.60% (unchanged this week), while the 10-year note yield settled down one basis point to 4.24% (+1 basis point this week). 

Reviewing today's data:

• January S&P Global U.S. Manufacturing PMI - Prelim 51.9; Prior 51.8
• January S&P Global U.S. Services PMI - Prelim 52.5; Prior 52.5
• January Univ. of Michigan Consumer Sentiment - Final 56.4 (Briefing.com consensus 54); Prior 54
  • The key takeaway from the report is that consumer sentiment, while improved a bit, is still guarded due to lingering concerns about high prices and softening labor markets.
• Leading Economic Index -0.3%; Prior -0.1%