New York, Jan 25, 2026, 12:06 PM EST — Market closed.
- After slipping over the past week and a fresh spasm of late-week volatility, the Dow enters Monday’s session on shaky footing.
- Risk appetite will probably hinge on the Fed’s January move and a packed earnings calendar.
- Traders are keeping an eye on new tariff threats and budget clashes brewing in Washington.
The Dow Jones Industrial Average (DJIA) fell 0.6% on Friday, finishing at 49,098.71, marking a 0.5% drop for the week as U.S. markets gear up to reopen Monday. The S&P 500 inched up 0.1%, while the Nasdaq added 0.3%.
The index enters the new week barely tolerating surprises. Rates, profits, and policy headlines have clustered tightly, with even minor moves jolting the tape.
The Federal Reserve is widely expected to keep interest rates unchanged after wrapping up its two-day meeting on Wednesday. Around 20% of the S&P 500 will report earnings, with heavyweights like Apple, Microsoft, Meta Platforms, and Tesla on deck. “It’s been a little bit of a short but steep roller-coaster ride,” said Yung-Yu Ma, chief investment strategist at PNC Financial Services Group. Chris Galipeau, senior market strategist at Franklin Templeton, cautioned that current valuations leave little margin for error — “the earnings bar had better be met.” Reuters
Goldman Sachs and Caterpillar led Friday’s slide in the Dow, dragging the index down by roughly 343 points combined, according to MarketWatch. Because the Dow is price-weighted, stocks with higher prices have a bigger impact. MarketWatch pointed out that a $1 move in any Dow stock shifts the index by about 6.16 points.
Tech gains lent some support to the market, though caution lingered. Intel took a steep hit after warning of weaker revenue and earnings ahead. Investors remained watchful for fresh tariff-driven swings amid ongoing trade tensions in Washington, according to a Reuters report.
The Fed plans to release its policy statement at 2:00 p.m. ET on Jan. 28, with Chair Jerome Powell set to hold a press conference at 2:30 p.m. ET. The meeting spans Jan. 27-28.
Earnings could keep the Dow on its toes even when macro headlines are scarce. This week, reports roll in from key players like Microsoft, Meta, Tesla, and Apple. Industrial giants Caterpillar, Boeing, and General Motors are also set to release results. On top of that, Visa, Mastercard, Exxon, and Chevron will report, according to Investopedia.
Trade tensions flared again over the weekend. President Donald Trump warned he could impose a 100% tariff on Canadian goods if Canada moves forward with a trade deal involving China, Reuters reported.
Washington’s funding showdown heats up. Senate Democrats are threatening to block a government funding bill that covers the Department of Homeland Security, potentially pushing the risk of a partial shutdown beyond Jan. 31, according to the Wall Street Journal.
The market’s core weakness hasn’t changed: lofty expectations. Should the Fed push back on early rate-cut speculation, or if earnings forecasts reveal tightening margins, the Dow’s top-weighted stocks could quickly turn the slide steep.
Midweek brings key events: the Fed’s statement and Powell’s press conference on Wednesday. After that, a busy stretch of earnings reports will test if Friday’s sell-off was just a breather—or the beginning of a tougher stretch.
