Stocks ended last week with modest losses following a volatile stretch driven by economic data releases, geopolitical headlines, and shifting policy expectations. While U.S. markets struggled to find direction, constructive economic news later in the week helped stabilize sentiment.

Key Takeaways

U.S. stock indexes finished the week modestly lower after choppy trading
Policy headlines and tariff discussions contributed to early volatility
Economic data later in the week supported a partial market rebound
Small-cap stocks posted a notable period of strength that we have not seen in a while

YCharts.com, January 24, 2026. Weekly performance is measured from Friday, January 16, to Friday, January 23. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.

Market Performance Snapshot

For the week, the S&P 500 Index declined 0.35%, while the Nasdaq Composite finished nearly flat, down 0.06%. The Dow Jones Industrial Average fell 0.53%. International stocks outperformed U.S. markets, with the MSCI EAFE Index rising 0.91%.

Market activity reflected sharp daily swings as investors responded to headlines rather than a single dominant economic trend.

Tariff Headlines Are Back

Markets opened the shortened week under pressure after the White House threatened new tariffs on European Union nations amid international tensions related to Greenland. U.S. stock indexes sold off sharply, with the S&P 500 and Nasdaq declining more than 2% during the early part of the week.

Volatility eased midweek after U.S. officials signaled a more diplomatic approach and later walked back tariff threats, citing progress toward a framework agreement. That shift in tone helped markets rebound, supported by improving economic data.

On Thursday, stocks accelerated higher following a modest upward revision to third-quarter GDP and lower-than-expected weekly jobless claims, reinforcing the view that economic conditions remain resilient.

Small Caps Show Relative Strength

One of the more notable developments beneath the surface was the performance of small-cap stocks. Through Thursday, the Russell 2000 Index had outperformed the S&P 500 for 14 consecutive trading sessions, a streak not seen since 1996!
That run ended on Friday, but the stretch highlighted renewed investor interest in smaller companies.

Historically, small-cap stocks have tended to outperform during periods of declining interest rates. While long-term Treasury yields have moved higher in recent months, the recent performance suggests investors are actively reassessing leadership across market segments.

This Week: Key Economic Data

Monday
Durable Goods Orders* (November)

Tuesday
Consumer Confidence

Wednesday
Federal Reserve Interest Rate Decision
Fed Chair Press Conference

Thursday
Weekly Jobless Claims
Trade Deficit* (November)
Productivity (Q3)
Wholesale Inventories* (November)
Factory Orders* (November)

Friday
Producer Price Index (PPI)* (December)

* Report publication delayed by the government shutdown in October and November

Investors Business Daily - Econoday economic calendar; January 23, 2026.

This Week: Companies Reporting Earnings

Tuesday
UnitedHealth Group Incorporated (UNH)
RTX Corporation (RTX)
The Boeing Company (BA)
NextEra Energy, Inc. (NEE)
Texas Instruments Incorporated (TXN)
Union Pacific Corporation (UNP)
HCA Healthcare, Inc. (HCA)

Wednesday
Microsoft Corporation (MSFT)
Meta Platforms, Inc. (META)
Tesla, Inc. (TSLA)
Lam Research Corporation (LRCX)
International Business Machines Corporation (IBM)
Amphenol Corporation (APH)
GE Vernova Inc. (GEV)
AT&T Inc. (T)
Danaher Corporation (DHR)
ServiceNow, Inc. (NOW)
The Progressive Corporation (PGR)
Starbucks Corporation (SBUX)
Automatic Data Processing, Inc. (ADP)

Thursday
Apple Inc. (AAPL)
Visa Inc. (V)
Mastercard Incorporated (MA)
Caterpillar Inc. (CAT)
Thermo Fisher Scientific Inc. (TMO)
KLA Corporation (KLAC)
Stryker Corporation (SYK)
Honeywell International Inc. (HON)
Lockheed Martin Corporation (LMT)
Parker-Hannifin Corporation (PH)
Blackstone Inc. (BX)
Altria Group, Inc. (MO)
Comcast Corporation (CMCSA)

Friday
Exxon Mobil Corporation (XOM)
Chevron Corporation (CVX)
American Express Company (AXP)
Verizon Communications Inc. (VZ)

Zacks, January 23, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities.

The more of these you take, the more of these you will likely leave behind. What are they?

Last Week's Riddle: My three eyes blink, and I give you commands.
Although I can’t see, the changing colors in me prompt you to obey me with your wheels, feet and hands.
What am I?

Answer: A traffic light.

Footnotes And Sources

1. WSJ.com, January 23, 2026
2. Investing.com, January 23, 2026
3. CNBC.com, January 20, 2026
4. CNBC.com, January 21, 2026
5. WSJ.com, January 22, 2026
6. CNBC.com, January 23, 2026
7. WSJ.com, January 22, 2026
8. IRS.gov, July 18, 2025

Zacks, January 23, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities.

This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with Bethesda Wealth Planning Group.

Weekly: Volatility Returns