Markets In Focus: The Week That Was and What’s On Tap Week-Ending 1/23/2026
The Week That Was
U.S. equities posted a mixed showing during the holiday-shortened week ending January 23, 2026, as investors weighed supportive macro fundamentals against a resurgence of trade and geopolitical headline risk. The S&P 500 declined approximately 0.3%, while the equal-weighted RSP also fell by about 0.2%, reflecting modest, broad- based consolidation following recent highs rather than a meaningful unwind of mega-cap leadership. The Nasdaq Composite finished essentially flat, with continued strength in select growth and AI-linked leaders offsetting pockets of volatility across the broader technology complex. In contrast, the Russell 2000 advanced roughly 1.5%, supported by easing concerns around financing conditions in 2026, a solid economic growth outlook and renewed catch-up interest in domestically oriented cyclicals and value-tilted shares.
Macro data continued to reflect inflation is under control within a solid economic backdrop. The midweek PCE inflation report came in largely as expected, keeping core inflation in the 2.7% range and supporting the view that the Federal Reserve will likely remain on hold at their January meeting next week. Meanwhile, the final estimate of third-quarter 2025 real GDP, near 3.5%, highlighted continued economic resilience, driven primarily by robust consumer spending and steady services activity.
Earnings results were mixed but broadly constructive, with investor focus shifting increasingly toward 2026 guidance, capital-expenditure plans, and the durability of AI-related demand rather than backward-looking beats. Sentiment was intermittently pressured by renewed tariff rhetoric from the Trump administration directed at Europe, tied to the latest push around Greenland, raising the prospect of another trans-Atlantic trade dispute. Markets, however, largely treated these developments as a tail risk rather than a base-case shift, limiting broader risk-off behavior.
The Week Ahead
The final week of January brings a packed U.S. economic calendar, headlined by the first FOMC meeting of 2026 and Wednesday’s rate decision, where policymakers are widely expected to hold rates steady but update guidance on the pace and timing of future cuts. Markets will parse Chair Powell’s press conference for any shift in tone around inflation progress and growth resilience. Ahead of that, Monday’s delayed November durable goods orders will offer a read on capital spending and manufacturing momentum after prior volatility in aircraft and core capital goods. To close the week, Friday’s December PPI will give another important look at pipeline inflation pressures, The week’s earnings slate is dominated by a broad cross-section of cyclicals, mega-cap tech, payments, healthcare, industrials, and energy, creating a dense macro read-through across the tape. Monday is lighter with Nucor and a handful of income/financial names setting the tone on steel pricing and credit. Tuesday ramps quickly with UnitedHealth, UPS, RTX, GM, Union Pacific, Nucor, HCA, and airlines like American and JetBlue, offering signals on labor costs, medical utilization, parcel volumes, industrial demand, and travel.
Wednesday becomes the high-impact day, with ASML, AT&T, Starbucks, GE Vernova, MSCI, ADP, and a heavyweight after-close lineup of Tesla, Microsoft, Meta, IBM, ServiceNow, Lam Research, and several others, giving a concentrated look at AI/cloud, digital ads, autos/EVs, and enterprise IT budgets. Thursday and Friday then shift focus to payments, industrials, and energy: Mastercard, Caterpillar, Lockheed, Honeywell, SAP, Blackstone, Thermo Fisher, Nasdaq, Comcast, Apple, Visa, Western Digital, SoFi, Chevron, Exxon, Regeneron, and Colgate report, rounding out the week with key insights into global consumer spending, capital goods, defense, credit conditions, and commodity/energy trends.
DISCLOSURES
The information presented is the opinion of Legacy Bridge, LLC., and does not reflect the view of any other person or entity. The information provided is believed to be from reliable sources, but no liability is accepted for any inaccuracies. This is for information purposes and should not be construed as an investment recommendation. The opinions expressed are subject to change without notice. Reliance upon information in this material is at the sole discretion of the reader. This information is not intended to be complete or exhaustive and no representations or warranties, either express or implied, are made regarding the accuracy or completeness of the information contained herein. This material may contain estimates and forward-looking statements, which may include forecasts and do not represent a guarantee of future performance. Past performance is no guarantee of future performance. Investing involves risks. Legacy Bridge LLC., is an investment adviser registered with the U.S. Securities and Exchange Commission.
The S&P 500 generally represents performance of 500 large companies listed on exchanges in the U. S. It is one of the most commonly followed equity indices. The Nasdaq Composite Index is a market-weighted index that measures the performance of more than 3,000 common equities listed on the Nasdaq Composite Market. The Russell 2,000 Index is a market-cap weighted index that measures the performance of approximately 2,000 of the smallest companies in the Russell 3,000 Index. The MSCI ACWI captures Large and Mid-Cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries. With 2,921 constituents, the index covers approximately 85% of the global investable equity opportunity set. FactSet Research System is a financial data and software company that provides research for Wall Street professionals and individual investors.
