New York, January 13, 2026, 13:39 EST — Regular session underway.
- The Dow dipped off Monday’s record high, with bank earnings and rate policy still steering the market.
- Shares of credit-card lenders and networks fell amid renewed chatter about imposing a rate cap.
- Traders are eyeing retail sales and producer prices later this week for fresh clues on demand and inflation.
The Dow Jones Industrial Average dropped 0.67% to 49,256.12 on Tuesday, dragged down by financial stocks as investors digested an inflation report that kept the rate-cut discussion open. U.S. crude climbed 2.67% to $61.09 a barrel, with Iran unrest sending oil prices to their highest in weeks. 1
The benchmark entered the session close to record levels, having just hit an all-time high Monday. Investors shrugged off renewed doubts about the Federal Reserve’s independence. Peter Cardillo, chief market economist at Spartan Capital Securities, noted that “the market is taking it in stride” as earnings season kicks off. 2
The Labor Department reported consumer prices climbed 0.3% in December, pushing the annual increase to 2.7%, driven mainly by rising shelter and food expenses. Core CPI, which excludes volatile food and energy sectors, rose 0.2% for the month and 2.6% over the past year. Sung Won Sohn of Loyola Marymount University noted that shoppers quickly feel the pinch from higher grocery and restaurant bills. 3
Visa dropped 4.7%, and Mastercard tumbled 5.3% after JPMorgan Chase CFO Jeremy Barnum’s comments reignited concerns about a potential cap on credit-card interest rates. JPMorgan itself slid 2.5%. Delta Air Lines slipped 2.4% following a weak profit outlook for 2026. Meanwhile, Intel and AMD climbed roughly 5.5% each after KeyBanc upgraded both to “overweight,” signaling optimism for their performance. Ryan Detrick, chief market strategist at Carson Group, pointed out that “the lifeblood of a bull market is rotation,” as futures continued to price in at least two quarter-point rate cuts later this year, according to LSEG data. 4
The Washington angle is making a comeback in daily trading. A crackdown on card rates threatens a business built on hefty interest income. Traders are scrambling to figure out who will tighten lending first—and how quickly consumers will feel the pinch.
The Dow’s price-weighted setup often amplifies its swings. Large moves in just a few high-priced stocks can overshadow calmer trends in the rest of the index.
Some cash is just hunting for shelter. Energy gets a lift when oil spikes, while staples quietly hold their ground as traders brace for potentially tricky headlines.
But the downside scenario is straightforward. Data remain erratic following shutdown disruptions, tariffs continue to cloud pricing decisions, and earnings guidance can turn negative fast when CEOs shift focus from past quarters to the upcoming one.
Attention now shifts beyond today’s data to upcoming key reports. Investors are set to eye the Census Bureau’s monthly retail trade figures, dropping Wednesday at 8:30 a.m. ET, followed by the Labor Department’s producer price index on Thursday. All eyes will also be on the Fed’s Jan. 27-28 policy meeting for any sign of a change in stance. 5
