Weekly Market Bullets

for the week ending 1/16/2026

• US Small Caps take center stage as US Equity Markets broaden amid profit-taking in mega-cap stocks. The S&P 500 fell 0.4% for the week and is now up 1.4% for the year. The Nasdaq dropped 0.7% for the week to bring its gains for the year to 1.2%, while the Russell 2000 (small cap stocks) continued its march higher, up 2.0% for the week and now up 7.9% for the year.

• Global Equity Markets rose last week following a US-Taiwan trade deal and some easing of geopolitical tensions. Developed Markets were up 1.3% for the week and are now up 3.3% for the year. Emerging Markets increased 2.3% for the week to bring their gains for the year to 5.7%.

• US Inflation Data remain sticky, still above the Fed's targets, pushing rates up. The Consumer Price Index (CPI) for December was up 2.7% from a year ago, in line with forecasts and flat with November's increase. Core CPI, which excludes food and energy prices, rose 2.6% from a year ago, slightly better than forecasts and flat from November's increase. As a result, the yield on the US 10-Year Treasury rose to 4.23% from 4.17% the prior week.

• The US Budget Deficit for 2025 fell to below 6% of GDP for the first time in three years. Rising tax revenue and tariffs were the primary reason for the improvement, as government spending as a percentage of GDP remains above historical averages. With fiscal stimulus poised to increase in 2026 due to the One Big Beautiful Bill Act, the budget deficit will likely increase as a percentage of GDP, though rising tax revenues from capital gains should partially offset that.

Market Data

for the week ending 1/16/2026