Monthly Market Summary
The U.S. stock market delivered a strong performance to kick off 2026. Market indexes reached record-setting levels. Overall, Wall Street showed resilience despite mixed corporate results and ongoing fiscal policy uncertainty. The S&P 500 rose steadily throughout the month, even surpassing the 7,000 threshold for the first time in its history. The Dow's gains reflected broad market strength, while the tech-heavy NASDAQ showed consistent upward momentum. Entering February, investor sentiment remained cautiously optimistic.
January was a pivotal month for the U.S. economy, revealing both the strengths and vulnerabilities. The combination of fiscal stimulus, resilient corporate earnings, and technological innovation provided avenues for growth, but the headwinds from tariffs, a cooling labor market, and persistent inflation signaled a more challenging road ahead. The economy appears to be transitioning from stimulus-fueled expansion to a period of more modest, uneven growth. Gross domestic product ended the third quarter of 2025 with an annualized return of 4.4%. Forecasts suggest fourth-quarter GDP may tick down a bit.
International Markets
European equities opened 2026 with record highs, extending the strong rally from late 2025. Tech and defense stocks were the main drivers of gains in January. European investors mostly shrugged off geopolitical tensions, particularly U.S. military involvement in Venezuela and tariff threats related to Greenland. Asian markets saw a heavy influx of capital and record-setting indexes but mixed performance across major countries. For January, the STOXX Europe 600 Index rose 2.6%; the United Kingdom’s FTSE advanced 2.5%; Japan’s Nikkei 225 Index gained 5.9%; and China’s Shanghai Composite Index increased 3.8%.
On A Personal Note
Jeff had the opportunity to shovel snow for a few hours last month. He said it was almost like a two-hour trip to the gym. Drew and his wife visited the University of Utah with their youngest daughter. There is not a very high chance she will end up a Ute, but it was a great excuse to ski for a few days in Park City! Chris’s daughter is cheering for the Lebanon JV basketball team. They are all enjoying the games and the excitement of basketball. Lisa spent most of January indoors waiting for spring to show up, and as of yet, it hasn’t! That groundhog says we still have six more weeks of winter. Sam travelled to our home office in Philly this month for Janney’s Elite conference. Hearing all about the ways we can better serve our clients made it a great experience. January was a rough month for Taylor’s family – sickness and viruses galore! Hoping for good health and rest for February.
