New York, Jan 16, 2026, 10:02 ET — Regular session
- Dow Jones Industrial Average slipped roughly 0.1%, erasing its early gains
- With markets hovering near highs and volatility low, all eyes turn to options expiration
- Bank earnings and chip stocks continue to push traders back and forth between “value” and tech sectors
The Dow Jones Industrial Average dipped in early Friday trading, erasing a modest gain from the open as declines in healthcare and consumer sectors weighed on the index. Around 10 a.m. ET, the Dow was down 70.37 points, or 0.14%, at 49,372.07. The S&P 500 edged up 0.07%, while the Nasdaq Composite climbed 0.26%. Among the Dow’s biggest losers were Salesforce, Merck, and UnitedHealth, with Nvidia bucking the trend and moving higher.
The stop-start rhythm matters as the market juggles two factors: the first full week of fourth-quarter earnings and an upcoming calendar event that could disrupt flows briefly. Stocks hover near record highs, yet trading remains tight.
Friday marks the monthly options expiration, when a hefty chunk of index and single-stock options contracts drop off. Volatility has been unusually muted, making this expiration a focal point. Brent Kochuba, founder of options analytics firm SpotGamma, expects it will finally get the S&P 500 moving more. He highlighted how dealer hedging often keeps markets stuck in a range. Upcoming options-driven triggers include the Fed’s January meeting and possible legal or political developments that could quickly shift risk appetite, according to Reuters.
The Dow jumped 292.81 points, or 0.60%, to close at 49,442.44 on Thursday, snapping a two-day losing streak. Banks and chipmakers drove the rally. Goldman Sachs and Morgan Stanley rallied following their earnings reports. Taiwan Semiconductor Manufacturing Co’s positive outlook and plans to expand U.S. production buoyed chip stocks. “It’s been growth, tech or bust in this market,” said Jake Dollarhide, CEO of Longbow Asset Management. Reuters
Friday brought more bank earnings. PNC Financial reported a 25% jump in fourth-quarter profit to $2.03 billion, driven by higher net interest income and a boost in capital-markets activity. The stock climbed 3.9% in early trading.
Earlier this week, the Dow slipped as investors shifted away from tech sectors and mulled over the outlook for lenders following mixed results from major banks. “After a nice run, and so-so or mediocre earnings, you’re seeing profit-taking and consolidation,” noted Michael O’Rourke, chief market strategist at JonesTrading. Bank shares fell amid concerns over a proposed cap on credit-card interest rates. Reuters
Oil and rates caught some attention in the tape. Crude bounced back following Thursday’s steep fall. Treasury yields inched up, introducing another factor for traders tracking how long the rally can hold without cheaper borrowing costs.
The day can flip quickly. Options expiry tends to ramp up index swings both ways, and any unexpected change in rate forecasts — or a sudden hit from tariff news — would probably hit the Dow’s industrial and financial giants first.
Next on investors’ radar is the Federal Reserve’s two-day policy meeting scheduled for Jan. 27-28. This event lands in the latter part of the month’s trading calendar, as earnings reports start expanding beyond the banking sector.
