Market Recap - Wednesday, January 14, 2026
Market Pauses as Big Tech Drags and Bank Earnings Disappoint
Stocks ended mostly lower today, as big tech weakness and underwhelming bank earnings weighed on sentiment. The S&P 500 dropped 0.53%, the Nasdaq fell 1%, and the Dow edged down 0.09%. However, the Russell 2000 jumped 0.70% and the equal-weighted S&P 500 outperformed the cap-weighted index by nearly a full percentage point, signaling strong breadth beneath the surface.
Heavyweights like Apple, Nvidia, and other momentum names led the decline, with several falling more than 2%. Retail favorites, software stocks, and semiconductors also sold off. Banks saw a second day of losses after mixed earnings from Wells Fargo, Bank of America, and Citi. Other weak groups included airlines, homebuilders, cruise lines, and department stores. Meanwhile, energy, managed care, regional banks, life insurers, chemicals, and dollar stores outperformed, along with a broader bid into defensive sectors like telecom and staples. Gold and silver surged to fresh record highs, while Bitcoin gained 3.2%. Treasury yields fell slightly and the dollar was little changed.
Economic data painted a mixed picture. November retail sales rose 0.6% month-over-month — beating expectations — while core retail sales increased 0.4%. Producer prices (PPI) came in largely in line, with core PPI flat for the month, helping ease inflation concerns slightly. December existing home sales also came in ahead of forecasts. Despite this, a full slate of Fed commentary kept rate cut hopes in check. Minneapolis Fed President Kashkari said there’s no urgency to cut rates in January, while other officials gave mixed signals, with some calling for further cuts later this year and others emphasizing that policy remains appropriately restrictive.
Markets also faced political noise. The Supreme Court again delayed its ruling on the legality of Trump-era tariffs, while former President Trump announced a new 25% tariff on imported chips not used in U.S. AI applications. Geopolitical tensions lingered, with reports of reduced executions in Iran providing some temporary calm to oil markets, though WTI crude gave up earlier gains to close below $60/barrel.
Notable movers included Nutrien (+7.9%) on a Morgan Stanley upgrade, TG Therapeutics (+6%) after a strong revenue guide, and Schlumberger (+2.4%) on reports of expansion talks in Venezuela. On the downside, Trip.com (-17%) plunged after a Chinese monopoly probe, while Rivian (-7.2%), Wells Fargo (-4.6%), and Citigroup (-3.3%)declined on company-specific disappointments.
Here’s Our Take:
Today’s action reflected a classic risk-recalibration day. While headline indexes fell, the rally in small caps and equal-weighted stocks, along with strong breadth, suggests investors are rotating rather than retreating. The fade in big tech and momentum names likely reflects both stretched sentiment and the high bar for earnings, while investors continue to favor cyclical and defensive plays like energy, regional banks, chemicals, and staples heading into what’s expected to be a bumpy earnings season.
Bank results show capital markets strength but also flag higher costs and caution on net interest income — adding pressure to a sector that had already seen a sharp run-up. Meanwhile, the economic picture remains resilient with solid retail sales and stable inflation, but the Fed remains in no rush to ease. With rate cut expectations moderating and geopolitics adding new variables — from tariffs to Iran — the market may stay choppy in the near term. Still, the fact that equities are digesting all this while staying near highs shows underlying investor confidence in the growth backdrop — even if leadership is starting to rotate.
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