Market Dashboard
New every Monday with last week’s recap and notes on the week ahead.
Last update: 1/20/2026
Large US equity indexes ended the week slightly lower, but small-caps and emerging market stocks surged as investors looked for gains beyond big tech. The dollar gained and Treasury yields rose slightly amid uncertainty about Fed policy and concerns about sticky inflation. December CPI was relatively stable. Retail sales showed consumer resilience.
Large US equities end week lower
- S&P 500 Index slides: Fell 0.4% to 6,940 for the week, underperforming the equal-weighted version, which gained 0.7%.
- Nasdaq Composite Index retreats: Dropped 0.7% due to weakness in big tech stocks.
- Small-cap stocks rally: Equity gains broadened beyond big tech, with the small-cap Russell 2000 Index advancing 2.0%, continuing its upward trend.
- Emerging markets gain: The MSCI Emerging Markets Index also rose 2.3%, reaching a new all-time high on Friday.
- US Dollar Index strengthens, staying above its 200-day moving average over the week.
Consumer inflation relatively stable
- CPI rises slightly: The headline Consumer Price Index increased 0.3% month-over-month and 2.7% year-over-year in December. Food prices rose sharply, but energy costs eased, stabilizing the overall figure.
- Core CPI alignment: “Core” CPI, which excludes volatile food and energy prices, matched consensus estimates, rising an annual 2.6%, a four-year low.
Energy drives November PPI rise
- PPI jumps: The Producer Price Index grew 3.0% month-over-month in December, exceeding consensus estimates. It was up from November’s 2.7% reading.
- Goods prices drive PPI growth: More than 80% of goods inflation was reportedly related to rising energy costs.
- Excluding food and energy: “Core” PPI was flat, below the expected 0.2% month-over-month rise.
Treasury yields tick up
- Muted rate cut expectations: Market-based forecasts for a 25-basis-point Fed rate cut in January remained at a very low 5%.
- Two-year Treasury yields increase: Rose 6 basis points to 3.59% last week, amid uncertainty about future Federal Reserve leadership and the path of near-term monetary policy.
- Ten-year Treasury yields tick up: Increased 5 basis points to 4.22%, due to concerns about “sticky” long-term inflation.
- MOVE index subdued: Still, the index of implied Treasury bond volatility reached lows last seen in 2021, marking 58.
Retail sales show consumer resilience
- Retail sales higher: Increased 0.6% month-over-month in November, exceeding analysts’ expectations.
- Gains in autos and materials led the advance, reversing October’s declines.
- Retail control group growth: Excluding more-volatile categories such as autos, food services, and gas, retail sales grew 0.4% month-over-month, driven by discretionary spending.
- Restaurant sales increase: Rose 0.6% month-over-month after previous low growth.
Small business optimism improves
- NFIB index rises: Increased 0.5 points to a forecast-topping 99.5 in December, according to the National Federation of Independent Business.
- Outlook improves: The share of small business owners expecting conditions to improve in the next six months jumped 9 percentage points to 24%.
- Inflation concerns ease: Fewer reports of price increases, but mixed labor market indicators.
- Job creation plans: The share of businesses planning new jobs fell 2 percentage points to 17%.
Mixed results in Financials sector
- Earnings season insights: Mixed results for the Financials sector, highlighting leaders and laggards.
- Positive trends: Strength among small businesses and consumers helped support credit demand and spending trends.
- Analysts focused on capital market activity and deal pipelines, as signs of “animal spirits” continued to pervade.
- Bank shares falter: The KBW Bank Index declined 1.7% over the week.
CRC# 5111454 (01/2026)
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Cross-Asset Performance Table
Returns and prices of the most popular indices and assets as of 01/16/26.
1) Annualized 3-year % return. 2) Option Adjusted Spread (OAS): OAS is a measurement of the spread of a fixed income security rate and the risk-free rate of return, which is adjusted to take into account an embedded option. Equity risk premium is the excess return that an individual stock or the overall stock market provides over a risk-free rate. The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. Past performance is not indicative of future results.
S&P 500 Sector Performance
Real Estate and Consumer Staples were the strongest-performing S&P 500 sectors last week, while Consumer Discretionary and Financials lagged.
Past performance is not indicative of future results.
Russell US Equity Style Performance
Small-cap stocks outperformed large-cap equities.
Past performance is not indicative of future results.
US Equity Valuation
S&P 500 Equity Risk Premium
Bonds continue to appear attractive relative to equities.
Past performance is not indicative of future results.
P/E Relative to Rest of World
The S&P 500 remains expensive relative to the rest of the world.
Past performance is not indicative of future results.
US Fixed Income Valuation
The two-year Treasury yield increased 6 bps to 3.59% last week, while the 10-year Treasury yield increased 5 bps to 4.22%.
†Interest Rate Volatility as measured by ICE BofAML Option Volatility Estimate Index (MOVE); *Mortgage-backed securities (MBS) are debt obligations that represent claims to the cash flows from pools of mortgage loans, most commonly on residential property. Mortgage loans are purchased from banks, mortgage companies, and other originators and then assembled into pools by a governmental, quasi-governmental, or private entity; **Options Adjusted Spread (OAS): A measurement of the spread of a fixed income security rate and the risk-free rate of return, which is adjusted to take into account an embedded option. Past performance is not indicative of future results.
Latest Economic Data
The National Federation of Independent Business (NFIB) small business optimism index increased 0.5 points to 99.5 in December, surpassing expectations. The share of small business owners expecting conditions to improve in the next six months jumped 9 percentage points to 24%.
The Week Ahead
The holiday-shortened week brings readings for the US personal consumption expenditures (PCE) price index; the Conference Board Leading Economic Index; and a bevy of housing data, including mortgage applications, construction spending, and pending home sales. Additionally, the fourth-quarter earnings season continues, with smaller Financials firms in focus.
- ADP Weekly Employment Change at 8:15 AM ET
- Philadelphia Fed Non-Manufacturing Survey at 8:30 AM ET
- Netflix, Inc. Reports Earnings
- MBA Mortgage Applications at 7:00 AM ET
- Conf. Board US Leading Economic Index at 10:00 AM ET
- US pending home sales at 10:00 AM ET
- Johnson & Johnson Reports Earnings
- The Charles Schwab Corporation Reports Earnings
- US GDP at 8:30 AM ET
- US personal income at 8:30 AM ET
- US initial jobless claims at 8:30 AM ET
- US PCE at 8:30 AM ET
- Kansas City Fed Manufacturing Survey at 11:00 AM ET
- Procter & Gamble Company Reports Earnings
- S&P Global US Composite PMI at 9:45 AM ET
Index benchmarks
Cross-Asset Performance
S&P 500: A market capitalization-weighted index of 500 widely held stocks often used as a proxy for the stock market. It measures the movement of the largest issues. Standard and Poor's chooses the member companies for the 500 based on market size, liquidity and industry group representation. Included are the stocks of industrial, financial, utility, and transportation companies. Since mid-1989, this composition has been more flexible and the number of issues in each sector has varied. The returns presented for the S&P 500 are total returns, including the reinvestment of dividends each month.
Dow Jones Industrial Average: Computed by summing the prices of the stocks of 30 companies and then dividing that total by an adjusted value—one which has been adjusted over the years to account for the effects of stock splits on the prices of the 30 companies. Dividends are reinvested to reflect the actual performance of the underlying securities.
NASDAQ Composite: Measures the performance of all issues listed in the NASDAQ Stock Market, except for rights, warrants, units, and convertible debentures. Morningstar reports the NASDAQ Composite as a price return.
MSCI Europe IMI: This index captures large, mid and small cap representation across 16 Developed Markets countries in Europe. With 1,372 constituents, the index covers approximately 99% of the free float-adjusted market capitalization across the Developed Markets countries of Europe.
MSCI Japan IMI: This index is designed to measure the performance of the large, mid and small cap segments of the Japan market. With 1,134 constituents, the index covers approximately 99% of the free float-adjusted market capitalization in Japan.
MSCI EM (Emerging Markets) Index: A free float-adjusted market-capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 23 emerging market country indexes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. For more information, visit the MSCI web site.
MSCI EAFE (Europe, Australasia, Far East) Index: A free float-adjusted market-capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index consists of the following 21 developed market country indexes: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. For more information, visit the MSCI website.
S&P 400 Index: This index provides investors with a benchmark for mid-sized companies. The index measures the performance of mid-sized companies, reflecting the distinctive risk and return characteristics of this market segment.
S&P 600 Index: This index measures the small-cap segment of the U.S. equity market. The index is designed to track companies that meet specific inclusion criteria to ensure that they are liquid and financially viable.
S&P 500 Growth: This index is a style-concentrated index designed to track the performance of stocks that exhibit the strongest growth characteristics by using a style-attractiveness-weighting scheme.
S&P 500 Value: This index is a style-concentrated index designed to track the performance of stocks that exhibit the strongest value characteristics by using a style-attractiveness-weighting scheme.
Bloomberg Commodity Index: Made up of 22 exchange-traded futures on physical commodities. The index currently represents 20 commodities, which are weighted to account for economic significance and market liquidity.
US Trade-Weighted Dollar Index: A weighted average of the foreign exchange value of the US dollar against a subset of the broad index currencies that circulate widely outside the US.
MSCI Emerging Markets Currency Index: sets the weights of each currency equal to the relevant country weight in the MSCI Emerging Markets Index.
Bloomberg US Aggregate Index: The US Aggregate Index covers the dollar-denominated investment-grade fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS pass-through securities, asset-backed securities, and commercial mortgage-based securities. These major sectors are subdivided into more specific sub-indices that are calculated and published on an ongoing basis. Total return comprises price appreciation/depreciation and income as a percentage of the original investment. This index is rebalanced monthly by market capitalization.
Bloomberg US Corporate High Yield Bond Index: This index is composed of fixed-rate, publicly issued, non-investment grade debt.
S&P Sector Performance
The S&P 500 Consumer Discretionary sector comprises those companies included in the S&P 500 that are classified as members of the consumer discretionary sector.
The S&P 500 Consumer Staples sector comprises those companies included in the S&P 500 that are classified as members of the consumer staples sector.
The S&P 500 Energy sector comprises those companies included in the S&P 500 that are classified as members of the energy sector.
The S&P 500 Financials sector comprises those companies included in the S&P 500 that are classified as members of the financial sector.
The S&P 500 Health Care sector comprises those companies included in the S&P 500 that are classified as members of the health care sector.
The S&P 500 Industrials Sector comprises those companies included in the S&P 500 that are classified as members of the industrials sector.
The S&P 500 Information Technology Sector comprises those companies included in the S&P 500 that are classified as members of the information technology sector.
The S&P 500 Materials Sector comprises those companies included in the S&P 500 that are classified as members of the materials sector.
The S&P 500 Communications Services Sector comprises those companies included in the S&P 500 that are classified as members of the telecommunications services sector.
The S&P 500 Utilities Sector comprises those companies included in the S&P 500 that are classified as members of the utilities sector.
The S&P 500 Real Estate Sector comprises those companies included in the S&P 500 that are classified as members of the real estate sector.
US Equity Style Performance
Weekly and monthly style performance charts use Russell 1000, Russell Mid Cap, and Russell 2000 style indexes to represent large cap, mid cap, and small cap respectively.
Russell 1000: Consists of the 1000 largest companies within the Russell 3000 index. Also known as the Market-Oriented Index, because it represents the group of stocks from which most active money managers choose. The returns we publish for the index are total returns, which include reinvestment of dividends. Frank Russell Company reports its indexes as one-month total returns.
Russell 1000 Growth: Market-capitalization weighted index of those firms in the Russell 1000 with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 includes the largest 1000 firms in the Russell 3000, which represents approximately 98% of the investable US equity market.
Russell 1000 Value: Market-capitalization weighted index of those firms in the Russell 1000 with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 includes the largest 1000 firms in the Russell 3000, which represents approximately 98% of the investable US equity market.
Russell 2000: Consists of the smallest 2000 companies in the Russell 3000 Index, representing approximately 7% of the Russell 3000 total market capitalization. The returns we publish for the index are total returns, which include reinvestment of dividends.
Russell 2000 Growth: Market-weighted total return index that measures the performance of companies within the Russell 2000 Index having higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the of the investable US equity market.
Russell 2000 Value: Market-weighted total return index that measures the performance of companies within the Russell 2000 Index having lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the of the investable US equity market.
Russell Midcap: Measures the performance of the 800 smallest companies in the Russell 1000 Index, which represent approximately 25% of the total market capitalization of the Russell 1000 Index. As of the latest reconstitution, the average market capitalization was approximately $4.0 billion; the median market capitalization was approximately $2.9 billion. The largest company in the index had an approximate market capitalization of $12 billion.
Russell Midcap Growth: Market-weighted total return index that measures the performance of companies within the Russell Midcap Index having higher price-to-book ratios and higher forecasted growth values. The Russell Midcap Index includes firms 201 through 1000, based on market capitalization, from the Russell 3000 Index. The Russell 3000 Index represents 98% of the of the investable U.S. equity market.
Russell Midcap Value: Market-weighted total return index that measures the performance of companies within the Russell Midcap Index having lower price-to-book ratios and lower forecasted growth values. The Russell Midcap Index includes firms 201 through 1000, based on market capitalization, from the Russell 3000 Index. The Russell 3000 Index represents 98% of the of the investable U.S. equity market.
P/E Relative to Rest of World
TOPIX: This free-floated-adjusted index tracks all domestic companies of the exchange’s First Section.
US Fixed Income Valuation
ICE BofAML Option Volatility Estimate Index (MOVE): A yield curve-weighted index of the normalized implied volatility on one-month treasury option.
An investment cannot be made directly in a market index.