Market Update: January 14, 2026

U.S. equities opened 2026 on a strong note, with major indices rising across the board despite mixed economic signals. The S&P 500 and Nasdaq each advanced more than 1.5%, while value and equal-weight strategies continued to outperform. Small caps led the charge—the Russell 2000 surged 4.6% on hopes of rate cuts and strength in financials. Sector leadership came from consumer discretionary and materials, both up roughly 5%, supported by robust retail gains and a renewed rally in precious metals. Gold jumped 4% and silver more than 10% in a volatile week for commodities.

Treasury yields eased after December’s payrolls disappointed at just 50,000 jobs, while unemployment edged down to 4.4%. The data reinforced expectations for a June start to Federal Reserve rate cuts, even as the economy remains broadly resilient. Meanwhile, ISM figures highlighted ongoing divergence between a contracting manufacturing sector (47.9) and a still-expanding services economy (54.4). Inflation expectations were steady, while a sharp 39% drop in the U.S. trade deficit suggests potential support for Q4 GDP.

Globally, optimism was tempered but steady. Eurozone inflation cooled to 2%, reviving speculation of ECB easing, and Asia posted mixed results as Chinese CPI accelerated while producer prices stayed deflationary.

Looking ahead, investors turn to this week’s U.S. CPI release, the kickoff to bank earnings season, and key policy decisions in Washington. While early-year momentum is encouraging, the intersection of softening data, shifting policy, and political developments may define the market narrative in the weeks ahead.

The information above has been obtained from sources considered reliable, but no representation is made as to its completeness, accuracy or timeliness.  All information and opinions expressed are subject to change without notice.  Information provided in this report is not intended to be, and should not be construed as, investment, legal or tax advice; and does not constitute an offer, or a solicitation of any offer, to buy or sell any security, investment or other product.