January 2026 Monthly Markets Update
Executive Summary The S&P 500 Index gained +1.5% in January, setting a new high as it traded above 7,000 for the first time. The month was also marked by sharp sector rotation; value outpaced growth across market caps. Large Cap Growth declined -1.5% as tech stocks traded lower, while Large Cap Value rose +4.6%. The […]
Stuart Katz on the Market Impact of Warsh Nomination on Schwab Network
Our CIO Stuart Katz joined Schwab Network to break down how the nomination of Kevin Warsh is impacting the dollar, gold, and investor sentiment. Stuart highlights how the nomination ofnew Fed leadership may refocus markets on economic fundamentals and corporate earnings, while also cautioning that a weaker dollar could fuel imported inflation. Watch the full segment here: https://schwabnetwork.com/video/warsh-to-head-fed-dollar-rises-gold-plummets
Fumbles or Fortunes? The S&P After the Super Bowl
Seattle Seahawks Super Bowl Date Location Opponent Score Opponent Score Result S&P 500 CY Performance* XL Feb. 5, 2006 Ford Field (Detroit) Pittsburgh 10 21 Loss 15.8% XLVIII Feb. 2, 2014 MetLife Stadium (East Rutherford, N.J.) Denver 43 8 Won 13.7% XLIX Feb. 1, 2015 University of Phoenix Stadium (Glendale, Ariz.) New England 24 28 […]
Markets Reprice Risk as Fed Signals Caution and Breadth Broadens
Executive Summary The S&P 500 returned +0.3% for the week, recovering from a mid-week wobble. The Fed held interest rates steady and signaled no rush to lower rates amid a strong economy, while tech stocks fell with a weak outlook from Microsoft with investors questioning the timeframe for returns on its AI-related spending. However, markets looked favorably […]
Tariff Turbulence Fades, Underlying Trends Hold Firm
Executive Summary Markets were choppy last week as policy headlines drove shifts in risk sentiment. Tariff-related developments sparked early-week volatility, though conditions stabilized as concerns eased. The S&P 500 finished the week in negative territory for the second consecutive week, where leadership continued to rotate beneath the surface. Small-cap, value, and equal-weight indexes outperformed, while technology […]
Markets Hold Steady as Value and Small Caps Lead
Executive Summary Equity indexes were mixed last week, with small-cap and value stocks adding to their year-to-date leads over large-cap and growth-oriented shares. The Russell 2000 and S&P MidCap 400 Indexes advanced, reaching all-time highs during the week, while large-cap indexes pulled back from the prior week’s record levels. Value stocks outpaced their growth counterparts for the third straight […]
2026 Opens with Momentum and Cautious Optimism
Markets started 2026 on a positive note, with major equity indices extending their 2025 gains as leadership shifted to smaller companies and cyclical sectors. The bond market was quiet and produced modest gains as Treasury yields inched lower, and corporate bonds outperformed as credit spreads remained tight. The tone across financial markets was risk-on but […]
Equity Market Recap – Stock Market Ends the Year Near All-Time Highs
Monthly Market Summary 2025 began with the stock market hitting new highs in February, only to reverse sharply as trade policy uncertainty triggered a nearly -20% sell-off. However, the sell-off set the stage for one of the strongest recoveries in decades. Fueled by AI enthusiasm, rate cut expectations, strong corporate earnings, and resilient economic growth, […]
2025 Market Recap: Strong Returns Across Assets, Elevated Valuations, and Falling Rates Set the Stage for 2026
Equities The S&P 500 returned 17.9% in 2025 and ended the year just off an all-time high, capping a 37% recovery from the April lows as the economy and corporate profits proved far more resilient than markets feared from tariffs and geopolitical events. Exuberance of the prospects for Artificial Intelligence was a key aspect of […]
Risk-On Rally as the Fed Fine-Tunes Policy and Market Leadership Broadens
Executive Summary Last week, markets leaned risk-on as the Fed delivered its third consecutive rate cut and investors doubled down on the soft-landing narrative. Stocks wavered early but rallied after Wednesday’s Fed decision, with the S&P 500 and Dow moving back toward all-time highs. The Russell 2000 set record highs on consecutive days, and the […]
Markets Rally Through Data Fog as Fed Expectations Drive Sentiment
Executive Summary Markets extended their rally in October, rising for a seventh straight month despite intra-month volatility and uncertainty around a December rate cut. The government shutdown has ended, but it has left a gap in economic data, making it difficult to analyze the economy. Despite this data vacuum, optimism around a third consecutive rate […]
Markets Digest the Path of Interest Rates & the Next Phase of the AI Cycle
Monthly Market Summary The Market’s Tug-of-War with the Federal Reserve The stock market was volatile in November as the Federal Reserve managed investor expectations for a December rate cut. The volatility started after the Fed’s late-October meeting, when Chair Powell said a December rate cut was “not a foregone conclusion”. Market-implied odds for a third […]