New York, January 31, 2026, 06:51 ET — Markets have officially closed.
- Rocket shares plunged Friday amid heavy turnover.
- Shares of mortgage lenders tumbled following a competitor’s earnings beat and new comments from the Fed.
- As the new week begins, investors are zeroing in on interest rates and upcoming U.S. economic data.
Rocket Companies (RKT) shares tumbled 13.67%, closing at $17.93 on Jan 30, the session before the weekend. Trading volume hit roughly 87 million shares—over three times the stock’s 50-day average. UWM Holdings also dropped 13.86%, as both the Nasdaq and Dow ended the day lower. (MarketWatch)
Rocket found itself back in the spotlight for rate-sensitive stocks, a group known for sudden, volatile moves. Much of Friday’s sell-off stemmed from sector jitters after PennyMac Financial Services reported quarterly profits that fell far short of estimates.
PennyMac shares plummeted 33% after the company posted earnings of $1.97 per share, falling short of analysts’ expectations, which were above $3. (Bloomberg)
Washington shook markets again as Donald Trump nominated former Federal Reserve governor Kevin Warsh to take the helm at the central bank once Jerome Powell’s term expires in May. This move throws the trajectory of borrowing costs into uncertainty. (Reuters)
PennyMac reported fourth-quarter net income of $106.8 million, or $1.97 per share, on total net revenues of $538.0 million. Chairman and CEO David Spector noted that “strong production results offset by increased runoff on our MSR asset as prepayment speeds increased.” Mortgage servicing rights, or MSRs, represent the right to collect fees on a pool of home loans; faster prepayments mean those fees can vanish sooner. (Business Wire)
Rocket, the Detroit-based homeownership platform centered on Rocket Mortgage, faces a familiar rate-driven push and pull. Falling rates might boost refinancing activity, yet they also ramp up competition and tighten margins as lenders vie for business. (Reuters)
Friday’s decline doesn’t tell the whole story. If inflation fears or political turmoil push Treasury yields higher, mortgage rates could spike, quickly dampening demand.
Markets reopen on Feb 2, and all eyes will be on whether the PennyMac shock sticks or ripples through the sector. Mortgage stocks often react to rate changes ahead of shifts in customer demand.
This week’s schedule is packed. The Institute for Supply Management will drop its manufacturing PMI, a survey tracking factory output, on Feb 2. Then, on Feb 6 at 8:30 a.m. ET, the U.S. Bureau of Labor Statistics will issue the January jobs report. (Institute for Supply Management)
