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Stock Market News for Jan 19, 2026

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U.S. stocks ended mostly flat on Friday as investors weighed comments on geopolitics and the Federal Reserve from President Donald Trump, as well as digested quarterly reports from some major companies, marking the start of the earnings season. All three major indexes ended in negative territory.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) declined 0.2% or 83.11 points, to end at 49,359.33 points.  

The S&P 500 slid 0.06%, or 4.46 points, to finish at 6,940.01 points. Communication services and healthcare stocks were the worst performers.

The Communication Services Select Sector SPDR (XLC) lost 0.7%. The Health Care Select Sector SPDR (XLV) fell 0.8%, while the Materials Select Sector SPDR (XLB) declined 0.4%. The Utilities Select Sector SPDR (XLU) fell 0.5%. Six of the 11 sectors of the benchmark index ended in positive territory.

The tech-heavy Nasdaq lost 0.06%, or 14.63 points, to close at 23,515.39 points.

The fear gauge, CBOE Volatility Index (VIX), was up 0.13% to 15.86. Decliners outnumbered advancers on the NYSE by a 1.19-to-1 ratio. On the Nasdaq, a 1.34-1 ratio favored declining issues. A total of 18.77 billion shares were traded on Friday, higher than the last 20-session average of 16.85 billion.

On the Nasdaq, there were 2,334 new 52-week highs and 2,719 new lows. On the NYSE, there were 423 new 52-week highs and 64 new lows.

Investors Digest Trump’s Remarks

Stocks fell on Friday following a winning session, as investors assessed Trump’s comments. The President said on Friday that he would prefer National Economic Council Director Kevin Hassett to continue in his present role instead of having him as the new Federal Reserve Chairman.

Investors have been betting on Hassett to succeed Fed Chairman Jerome Powell after his term ends in May, as they see him as more market-friendly and who could keep interest rates low. However, former Fed Governor Kevin Warsh has moved ahead of Hassett in the race lately.

Chip Stocks Gain

Chip stocks gained on Friday for the second straight day. Taiwan Semiconductor Manufacturing Company Limited ((TSM - Free Report) ), which reported blowout fourth-quarter earnings a day earlier, rose 0.2% on Friday. The gains came after Taiwan and Washington reached a trade deal wherein Taiwanese tech and semiconductor companies invest $250 billion in production capacity in the United States.

Other chipmakers like Broadcom Inc. ((AVGO - Free Report) ) gained 2.5%, while Micron Technology, Inc. ((MU - Free Report) ) jumped 7.8%. Broadcom has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Meanwhile, financial stocks suffered for most of the week despite some major banks reporting robust earnings. Bank stocks came under pressure after Trump called for a 10% cap for one year on credit card interest rates, which could impact the profits of financial companies.

Shares of The Goldman Sachs Group, Inc. ((GS - Free Report) ) fell 1.4%, while Wells Fargo & Company ((WFC - Free Report) ) ended 0.7% lower.
The earnings season is steadily gathering pace, with a slew of big tech companies scheduled to report quarterly results this week.

Economic Data

In economic data released on Friday, industrial production increased 0.4% in December, surpassing estimates of a rise of 0.2%. Capacity utilization increased 76.3% in December from 76.0% in the previous month.

Weekly Roundup

For the week, the Dow lost 0.3%. The S&P 500 and the Nasdaq lost 0.4% and 0.7%, respectively. 

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