January 2026 Market Check-In: January Moved Fast

Market Overview

January set a brisk pace for 2026. The S&P 500 extended its winning streak from 2025, driven by strong earnings reports from technology leaders and continued enthusiasm around artificial intelligence investments.

Bond markets held relatively steady, with the 10-year Treasury yield hovering around 4.2%. The Federal Reserve signaled patience on further rate adjustments, keeping markets in a holding pattern on monetary policy.

Portfolio Impact

Client portfolios benefited from the continued strength in U.S. large-cap equities. International diversification provided modest headwinds, as the strong dollar weighed on foreign-denominated returns.

We used the month's strength to selectively rebalance portfolios that had drifted above their equity allocation targets — a disciplined approach to managing risk while markets are accommodating.

Looking Ahead

Earnings season continues into February, and we will be watching for signs that corporate profitability is broadening beyond the technology sector. We remain constructive on the outlook but vigilant about concentration risk.

As always, your plan is built for all market environments. January's strength is welcome, but it does not change our long-term approach.

This commentary is for informational purposes only and does not constitute investment advice.