Executive Summary
U.S. markets closed mixed today in a volatile session marked by a sharp sector divide. The S&P 500 fell 0.48%, Nasdaq dropped 0.71%, and Dow declined 0.08%, while small-caps (Russell 2000) lost 0.62%. Software stocks suffered their worst day in 10 months following Microsoft's disappointing AI spending outlook, while commodities surged with gold continuing its extraordinary 95% year-over-year rally.
Major Index Performance
| Index | Close | Change | % Change |
|---|---|---|---|
| S&P 500 (SPY) | $693.04 | -$3.35 | -0.48% |
| Nasdaq (QQQ) | $628.13 | -$4.52 | -0.71% |
| Dow (DIA) | $489.68 | -$0.39 | -0.08% |
| Russell 2000 (IWM) | $262.44 | -$1.63 | -0.62% |
Sector Snapshot
Winners:
- Real Estate: +0.70% (benefiting from lower rates expectations)
- Communication Services: +0.44%
- Basic Materials: +0.21% (commodity strength)
Losers:
- Energy: -1.78% (despite oil price spikes)
- Consumer Cyclical: -1.46%
- Healthcare: -0.65%
Key Earnings Beats
Apple (AAPL) led after-hours action with strong results:
- EPS: $2.84 vs $2.67 est (+6% beat)
- Revenue: $143.76B vs $138.39B est (+4% beat)
Other notable beats:
- Mastercard (MA): EPS $4.76 vs $4.24 est
- Caterpillar (CAT): EPS $5.12 vs $4.67 est
- Visa (V): EPS $3.17 vs $3.14 est
- Comcast (CMCSA): EPS $0.84 vs $0.73 est
Market Themes
Tech Divergence: Semiconductors remained hot while software stocks sold off sharply on Microsoft's AI capex concerns. This created the worst day for software in 10 months.
Commodity Surge: Gold's 95% year-over-year rally continued, with copper and oil also spiking. The U.S. Dollar Index hit a 4-year low, driving safe-haven flows.
Fed Tensions: New analysis showed tariffs may have cost 19,000 jobs/month in 2025. Political pressure on Chair Powell intensified with Trump hinting at naming a new Fed chair.
Most Active Stocks
Top volume leaders included leveraged ETFs (ZSL, SOXS) and silver (SLV), reflecting heightened volatility and commodity interest. NVDA remained among the most traded despite the tech selloff.
Economic Data
- Initial Jobless Claims: 209,000 (week ending Jan 24) - labor market remains stable
- China-UK Trade: China halved tariffs on UK whisky to 5%, expected to boost UK economy by $345M over 5 years