Market Recap - Friday, January 23, 2026
Markets Mixed to End Volatile Week
US stocks closed out the week on a mixed note, with the Dow falling 0.58%, the S&P 500 edging up 0.03%, and the Nasdaq rising 0.28%. The Russell 2000 small-cap index lost 1.82%, snapping its impressive 14-day streak of outperforming the S&P 500 — the longest since 1996.
It was a choppy session, capping off a noisy, holiday-shortened week. Tech outperformed, led by Microsoft, as investors looked ahead to next week’s Big Tech earnings. Energy, gold miners, and railroads also saw gains, while financials, industrials, airlines, and homebuilders lagged. Treasuries were firmer, the dollar slumped to its worst weekly loss since May, and gold and silver both surged to fresh record highs — gold now just shy of $5,000/oz and silver above $100/oz. Oil prices bounced back sharply, gaining nearly 3%.
Much of the week’s earlier enthusiasm for small caps faded, with no clear catalyst other than stretched positioning and hype around Washington’s “run-it-hot” economic stance. Meanwhile, sentiment toward Big Tech improved as investors refocused on AI and cloud monetization heading into earnings. Intel dragged on semis after a weak forecast, though Nvidia got a boost after reports China may allow orders for its H200 chips. In earnings, results were mostly underwhelming but mixed, with stock moves reflecting both company-specific execution and macro sentiment.
On the data front, January consumer sentiment came in stronger than expected, and inflation expectations cooled slightly. The latest S&P Global PMIs showed continued economic expansion, though at a slightly slower pace. Eyes now turn to next week’s Fed meeting — where no rate move is expected — and the possible announcement of Trump’s pick for the next Fed Chair, with BlackRock’s Rick Rieder now leading prediction markets.
Here’s Our Take
This week was all about digestion: of earnings, policy updates, and the recent rally. Small caps finally took a breather after an extraordinary run, while Big Tech quietly reclaimed leadership as investors pre-position for earnings and a possible AI resurgence narrative. The rally in commodities, especially gold and silver, reflects a mix of inflation hedging, geopolitical jitters, and bullish sentiment.
Markets remain caught between two forces: solid economic data supporting equities and rates, and growing discomfort over valuations, geopolitical risks, and lingering Fed uncertainty. The recent shift in Fed chair betting odds toward a more market-friendly figure like Rick Rieder could provide a near-term tailwind if confirmed. But with sentiment stretched and earnings needing to impress, we expect more chop ahead before the next leg higher.
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