2026 | February 2

The Markets

Stocks Mixed

U.S. stocks started the week on a positive note, sending the S&P 500 to a record high on Wednesday, but the market turned negative on Friday and finished mixed overall for the week. The S&P 500 climbed slightly while the NASDAQ and the Dow both finished fractionally lower for the third week in a row.

The U.S. stock market maintained modestly positive momentum in January, with each of the three major indexes posting monthly gains of monthly gains of around 1% to 2%. For the S&P 500, it was the eighth positive monthly result out of the past nine; for the Dow, it was the ninth positive month in a row. 

Gold and silver prices rallied to record highs on Thursday, only to tumble on Friday and finish negative for the week following the nomination of a new Fed chair. Gold futures were trading for less than $4,900 per ounce late Friday afternoon, just a day after climbing as high as $5,586. Silver took an even steeper dive, sinking to around $82 per ounce on Friday after peaking at $121 the day before.

The price of the most widely traded cryptocurrency was down around 4% for the week as of Friday afternoon, extending a decline that began last fall. Bitcoin was trading around $84,000, down from a record $125,000 reached less than four months earlier. As recently as January 13, Bitcoin was trading around $97,000. 

The price of U.S. crude oil was up nearly 7% for the week as of Friday afternoon at roughly $66 per barrel, the highest level in more than four months. While oil was up around 13% on a year-to-date basis, it remained well below prices recorded in early 2025. 

President Trump on Friday nominated former U.S. Federal Reserve Governor Kevin Warsh to replace Jerome Powell when the current Fed chair’s term ends in mid-May. Warsh now faces Senate confirmation. The nomination came two days after the Fed fulfilled market expectations by keeping its benchmark rate unchanged, initiating a policy pause after approving rate cuts at its three previous meetings.

Earnings season expectations continued to rise approaching the mid-point of quarterly reporting. As of Friday, analysts projected that earnings for S&P 500 companies rose 11.9% in the fourth quarter, up from an 8.2% forecast the previous week, according to FactSet. The figures are based on the roughly one-third of companies that had reported results as of Friday, plus projections for those that haven’t yet released their numbers.

A monthly jobs report due out on Friday will show whether recent labor market weakness extended into January. In December, the economy generated a below-forecast 50,000 new jobs, capping a year in which payroll gains averaged 49,000 per month—less than one-third of 2024’s 168,000 average.

Source: John Hancock Investment Management

AJA Office is Open

We want to let our clients know that our office is open and back to normal operating hours (8:30 A.M. to 5 P.M. Mon-Fri). Our parking lots should be fully thawed after today from the ice that accumulated last week. Please know that we are flexible and understand changes or cancellations to any upcoming meetings. We know many in Nashville are still very much dealing with the impacts of last week’s storm, including many of our own family members. If there is anything we can assist with, please call or email! 

College Financial Aid is Changing

More than half of parents in a 2025 survey said they currently save – or plan to save – for their children’s college in tax-advantaged 529 College Savings Plans. That’s a sound plan because the One Big Beautiful Bill Act (OBBBA) made some significant changes that reduce the amount of federal financial aid available to undergraduate and graduate students. It also revised repayment options for parents and students, reported Kamaron McNair of CNBC.

Here are the basics of the revised student lending programs:

• New borrowing limits. In general, the amounts undergraduate and graduate students can borrow for college were lowered, and so was the amount parents can borrow. In addition, a lifetime borrowing limit was set.

*Effective July 1, 2026. Source: National Association of Independent Colleges and Universities (NAICU)

• Elimination of Grad PLUS loans. Starting July 1, 2026, Grad PLUS loans, which allowed graduate students to borrow up to the full cost of attendance, will no longer be available to new borrowers.

• Legacy provisions. If an undergraduate or graduate student or a parent borrowed through a Federal Direct Loan program before July 1, 2026, they can continue to borrow from the program under current loan limits for three academic years or until they receive a credential, whichever is less, according to the National Association of Student Federal Aid and Administration (NASFAA).

Here are the basics of the revised repayment options:

• Repayment plans for new borrowers. For federal student loans made after July 1, 2026, the only repayment options available will be: 1) a new standard repayment plan, or 2) a new income-based repayment (IBR) plan called the Repayment Assistance Plan (RAP). The new program, RAP, requires borrowers to make loan payments of one to 10 percent of their income, with a minimum payment of $10. The repayment period is 30 years.

• Repayment plans for current borrowers. Anyone who is enrolled in one of the following repayment plans – the Income-Contingent Repayment (ICR), Pay as You Earn (PAYE) or Saving on a Valuable Education (SAVE) plans – can remain in that plan until July 1, 2028. However, they must transition into a different plan – either the current IBR, the current standard plan, or RAP – by that date. If they do not, they will automatically be moved to RAP.

The current IBR plan was changed so borrowers do not need to demonstrate partial financial hardship. In addition, balances of loans repaid may be cancelled after 25 years for current borrowers or 20 years for new borrowers.

Consolidation loans used to pay off Parent PLUS loans must begin repayment before July 1, 2026, to qualify for IBR. As a result, parent borrowers who prefer to have an income-based option for loan repayment should consider consolidating their loans before that date, according to Student Loan Borrower Assistance at the National Consumer Law Center.

• All loans must be repaid from the same repayment plan.

• Higher K-12 withdrawal limits for 529 plans. In addition to expanding the “qualifying” education expenses, OBBBA increased the amount that may be withdrawn for qualified primary and secondary school expenses from $10,000 to $20,000.

If you have questions or would like to discuss your college funding plans, please get in touch.

Phone: (615) 709-8709

Fax: (615) 709-8709

eMoney

Charles Schwab

Advyzon

Emily Triano

Operations Manager

emily@ajadvice.com

Maya Laws

Operations Associate

maya@ajadvice.com

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