New York, Jan 16, 2026, 14:24 EST — Regular session
- Dow last dipped roughly 21 points, lingering just under 49,400 amid thin, choppy action
- Chip stocks held steady, but banks stumbled amid concerns over policy shifts and rate volatility
- With Monday’s holiday behind us, all eyes turn to next week’s earnings and the Fed meeting set for Jan. 27-28
The Dow Jones Industrial Average slipped roughly 21 points, or 0.04%, to 49,421.43, retreating from earlier gains as traders prepared for a long weekend with little clear direction. 1
Moves stayed modest, though nerves showed. A chip-driven bounce helped the broader market dodge a slide, even as some financials and rate-sensitive stocks floundered.
The backdrop is complicated: a fresh earnings season kicks off, Washington is laying out policy hurdles for whole sectors, and investors wrestle with pricing in a potentially new Federal Reserve chair. This jumble has sparked swift rotations instead of clear trends.
Semiconductor shares held firm, extending gains driven by AI demand, while Treasury yields nudged higher. (Bond prices and yields move in opposite directions.) President Donald Trump’s comments on keeping economic adviser Kevin Hassett sparked fresh speculation about Jerome Powell’s successor, with betting markets now favoring ex-Fed governor Kevin Warsh. “Any attempts to undermine Jerome Powell may seem to be backfiring,” noted John Belton, portfolio manager at Gabelli Funds. 2
Liquidity is set to dwindle even more once the market closes. U.S. stock exchanges will be closed Monday in observance of Martin Luther King Jr. Day and will resume trading on Tuesday. 3
Thursday’s session ended with the Dow gaining 292.81 points, or 0.60%, settling at 49,442.44. The boost came thanks to strong signals from Taiwan Semiconductor and initial bank earnings that helped firm up risk appetite. 4
The day before, the index dropped 42.36 points, or 0.09%, settling at 49,149.63. A tech-driven retreat, combined with softness in some banking stocks, dampened the week’s earlier gains. 5
The bigger question remains rates and the politics tied to them. Fed Vice Chair for Supervision Michelle Bowman said the central bank should be ready to cut rates again if the job market weakens. She also cautioned that stock prices “may appear stretched,” warning that weak AI investment returns could spark a sharp equity sell-off. 6
Next week’s earnings calendar thickens with Netflix, Johnson & Johnson, and Intel set to report, as investors seek signals that support current high valuations. “With all the noise around geopolitics and policy, earnings have to drive the headlines,” said Art Hogan, chief market strategist at B Riley Wealth. 7
After earnings reports wrap up, all eyes turn to the Fed’s policy meeting on Jan. 27-28. 8
