New York, Jan 17, 2026, 12:40 (EST) — Market closed
- The Dow dropped 83 points on Friday, closing the week roughly 0.3% lower.
- Markets in the U.S. will be closed Monday in observance of Martin Luther King Jr. Day, reopening for trading on Tuesday.
- Bond yields and a fresh batch of earnings reports are in focus as investors look for new cues.
The Dow Jones Industrial Average dropped 83.11 points, or 0.2%, ending Friday at 49,359.33. The S&P 500 and Nasdaq Composite each slipped 0.1%. Over the week, the Dow declined 0.3%. (AP News)
The calendar throws the first curveball. U.S. equities won’t trade Monday due to Martin Luther King Jr. Day, cutting the week short and likely thinning volume when markets reopen Tuesday. (New York Stock Exchange)
That return comes amid ongoing uncertainty around interest rates. Treasury yields climbed late Friday, while the dollar hovered near a six-week peak. Comments on the Federal Reserve’s outlook shook up expectations about the next move in policy, with markets pricing in about a 20% probability of a rate cut in March. (Reuters)
Friday’s trading was mixed. Healthcare dropped 0.8%, leading sector declines, while chip stocks pushed the Philadelphia SE Semiconductor Index up 1.2%. Financials came under pressure amid renewed scrutiny of President Donald Trump’s plan to cap credit card interest rates at 10% for one year. Anthony Saglimbene, chief market strategist at Ameriprise Financial, noted that earnings season kicking off was partly to blame for the market’s “flat-lining.” Traders also flagged the monthly options expiration — when many stock and index contracts expire — as adding to near-term volatility. (Reuters)
Small caps stayed in the spotlight. The Russell 2000 closed Friday up and notched a strong weekly advance, suggesting some investors are still hunting for more affordable plays outside the top tech giants.
Weekly jobless claims underscored the challenge of pinpointing a clear shift in the U.S. labor market. Initial claims dropped by 9,000 to a seasonally adjusted 198,000 for the week ending Jan. 10. Still, economists warned the decline probably stems from quirks in seasonal adjustments. Meanwhile, continuing claims edged down to 1.884 million. (Reuters)
The upcoming catalyst is earnings season, which kicks off early in the week. Netflix is set to release its fourth-quarter 2025 results and guidance on Tuesday, Jan. 20, around 1:01 p.m. Pacific time (4:01 p.m. ET). Johnson & Johnson will unveil its quarterly numbers Wednesday, Jan. 21, at 8:30 a.m. ET. Intel follows on Thursday, Jan. 22, reporting after the market close. (Netflix)
Housing and labor data are also in focus this week. The National Association of Realtors will publish its Pending Home Sales Index for December on Wednesday, Jan. 21, at 10 a.m. ET. Then on Thursday, Jan. 22, the weekly jobless-claims report is scheduled. (National Association of REALTORS®)
The bigger macro event is still looming. The Federal Open Market Committee will meet on Jan. 27-28. (Federal Reserve)
Still, the situation works both ways. If yields surge again, policy forecasts shift abruptly, or early earnings reports come in cautious, rate-sensitive sectors of the Dow could take a hit, challenging the market’s appetite to stay near record levels.
Traders will get their first substantial update Tuesday after the holiday when Netflix reports post-close. Johnson & Johnson follows Wednesday morning, then Intel on Thursday. All this unfolds with the Fed’s Jan. 27-28 meeting looming in the background.
