Daily Sector Wrap
| Updated: 16-Jan-26 16:36 ET |
| Closing Market Summary: Market drifts slightly lower to end the week |
The stock market ended the week on an underwhelming note, with the S&P 500 (-0.1%), Nasdaq Composite (-0.1%), and DJIA (-0.2%) unable to notch the gains necessary to finish the week in positive territory. The broader market was mixed today, and without any outsized moves at the sector level. The real estate sector (+1.2%), which captured the widest gain this week (+4.1%) was the only sector to close with a gain or loss of 1.0% or wider. Early in the session the top-weighted information technology sector (+0.1%) held a similar gain, though similar to yesterday's action it was unable to sustain the early growth. Chipmaker names had another strong session, sending the PHLX Semiconductor Index 1.3% higher, with Micron (MU 362.75, +26.12, +7.76%) among the outperformers after a company director purchased more than $7.8 billion in stock. The company also broke ground on a new production facility today. However, strength in chipmakers was largely offset by weakness in software names, with losses across the iShares GS Software ETF (-1.5%) sending it to its lowest levels since early May. The industrials sector (+0.7%) was able to maintain the bulk of its earlier gain, with particular strength in power names such as GE Vernova (GEV 681.55, +39.32, +6.12%) following President Trump's call for the development of more power plants. The financials sector (+0.1%) finished just modestly higher despite a solid earnings report from PNC (PNC 223.18, +8.14, +3.79%) and a rebound in credit card names such as Synchrony Financial (SYF 80.19, +2.49, +3.20%) and American Express (AXP 364.79, +7.42, +2.08%). Meanwhile, the health care sector (-0.8%) was the biggest laggard amid a relatively slow session for defensive sectors. Though not a component of the sector, Novo Nordisk A/S (NVO 62.34, +5.22, +9.14%) finished sharply higher amid solid demand for its recently launched weight loss pill. The communication services sector (-0.7%) was also near the bottom of the leaderboard, as Alphabet (GOOG 330.34, -2.82, -0.85%) was a mega-cap laggard for the second consecutive session. The Vanguard Mega Cap Growth ETF (-0.2%) finished modestly lower to end a tough week for the market's largest names that saw the ETF shed 1.5%. Outside of the S&P 500, the Russell 2000 (+0.1%) managed to scratch out a gain, while the S&P Mid Cap 400 (-0.3%) moved lower. Ultimately, a lack of fresh catalysts and mixed sector performance kept trading subdued, setting the stage for next week's data and earnings flow to determine whether momentum can reaccelerate. On the policy front, Fed Vice Chair for Supervision Bowman (FOMC voter) pushed back against recent pause-friendly rhetoric, saying the Fed should remain ready to adjust policy toward neutral and avoid signaling a pause absent changing conditions. Despite the contrast with other FOMC members, markets made no change to their expected easing timeline. What has shifted is the outlook for Fed leadership. CNBC reported that President Trump signaled he wants National Economic Council Director Mr. Hassett to remain in his current role, boosting prediction-market odds that former Fed Governor Mr. Warsh is now the leading contender to be the next Fed Chair. U.S. Treasuries finished the week on a lower note, sending yields on 5s and 10s to their highest levels since late August/early September. The 2-year note yield settled up four basis points to 3.60% (+6 basis points this week), and the 10-year note yield settled up seven basis points to 4.23% (+6 basis points this week). Bond and equity markets will be closed on Monday for Martin Luther King Jr. Day.
Reviewing today's data:
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