⚡ Markets Tread Water as Energy Shines and Financials Drag Stocks Lower
Global equity markets ended the trading week of January 23, 2026, largely flat, as gains in energy and basic materials were offset by notable weakness in financial services and real estate. Investors remained cautious ahead of a busy earnings calendar and key macroeconomic data, keeping broad market indices in a holding pattern.
Market performance at a glance
The Morningstar US Market Index slipped slightly, declining 0.41%, reflecting a market struggling to find clear direction. Major benchmarks echoed this muted tone, with the S&P 500 down 0.35% and the Nasdaq edging lower by just 0.06%.
Across market capitalisation, declines were fairly uniform. Large-cap and mid-cap stocks each fell 0.43%, while small-cap stocks proved slightly more resilient, dropping 0.21%. Style-wise, growth stocks bore the brunt of selling pressure, underperforming blend and value stocks as investors leaned toward relatively defensive positioning.
Out of more than 830 US-listed stocks tracked by Morningstar, just under half advanced, highlighting a market that lacked strong breadth or conviction.
️ Sector winners and losers
Sector performance showed a clear divergence:
Energy stocks led the market, rising nearly 3%, supported by higher oil prices and renewed optimism around global demand. Basic materials also performed strongly, benefiting from firm commodity prices and inflation-hedging flows.
On the flip side, financial services emerged as the weakest sector, falling over 2.5%, as concerns lingered around interest rate expectations and margin pressures. Real estate also struggled, reflecting sensitivity to higher yields and financing costs.
This split underscores a cautious rotation, with investors favouring inflation-resistant and commodity-linked sectors while trimming exposure to rate-sensitive industries.
Bonds and commodities tell a mixed story
In the fixed-income market, yields were largely stable. The 10-year US Treasury yield held steady at 4.24%, while the 2-year yield edged slightly higher, suggesting continued uncertainty around the near-term path of monetary policy.
Commodities, however, told a stronger story:
• Crude oil prices climbed more than 3%, supporting energy stocks.
• Gold surged sharply, reinforcing its role as a hedge amid macroeconomic uncertainty and cautious risk sentiment.
Top-performing stocks: biotech and materials shine
The week’s standout performers were driven by strong moves in biotechnology, healthcare, and materials:
• Intellia Therapeutics led the market with a double-digit weekly gain, despite still trading well below its estimated fair value, reflecting renewed speculative interest in biotech names.
• Qiagen and Moderna also posted strong gains, benefiting from sector momentum and improving sentiment around healthcare innovation.
• Albemarle, a key player in lithium and battery materials, continued its impressive rally, supported by long-term demand expectations tied to energy transition themes.
• Telefonica Brasil rounded out the gainers, reflecting renewed interest in emerging-market telecom exposure.
Worst performers: valuation pressures resurface
On the downside, several stocks faced sharp pullbacks:
• Array Digital Infrastructure was the week’s worst performer, declining sharply as valuation concerns resurfaced following a strong prior run.
• Roblox and Nebius Group also fell significantly, reflecting investor caution toward high-growth and richly valued tech names.
• Abbott Laboratories declined amid weaker sentiment in defensive healthcare, while Shopify slipped despite its strong long-term performance, as investors reassessed growth expectations.
Overall, many of the laggards were stocks trading above estimated fair value, reinforcing the market’s current sensitivity to valuation.
️ What investors are watching next
The coming week is packed with potential market-moving events:
• Key economic data, including durable goods orders, consumer confidence, jobless claims, and producer prices
• A closely watched Federal Open Market Committee (FOMC) decision on interest rates
• Major earnings releases from heavyweight companies across technology, finance, healthcare, energy, and consumer sectors
These developments are likely to determine whether markets remain range-bound or regain momentum.
Big picture takeaway
The week’s trading pattern reflects a market in wait-and-see mode. While energy and commodities provided pockets of strength, weakness in financials and growth stocks kept overall performance subdued. With macro risks, earnings uncertainty, and central bank decisions in focus, investors appear selective rather than broadly bullish
Global equity markets ended the trading week of January 23, 2026, largely flat, as gains in energy and basic materials were offset by notable weakness in financial services and real estate. Investors remained cautious ahead of a busy earnings calendar and key macroeconomic data, keeping broad market indices in a holding pattern.
Market performance at a glance
The Morningstar US Market Index slipped slightly, declining 0.41%, reflecting a market struggling to find clear direction. Major benchmarks echoed this muted tone, with the S&P 500 down 0.35% and the Nasdaq edging lower by just 0.06%.
Across market capitalisation, declines were fairly uniform. Large-cap and mid-cap stocks each fell 0.43%, while small-cap stocks proved slightly more resilient, dropping 0.21%. Style-wise, growth stocks bore the brunt of selling pressure, underperforming blend and value stocks as investors leaned toward relatively defensive positioning.
Out of more than 830 US-listed stocks tracked by Morningstar, just under half advanced, highlighting a market that lacked strong breadth or conviction.
️ Sector winners and losers
Sector performance showed a clear divergence:
Energy stocks led the market, rising nearly 3%, supported by higher oil prices and renewed optimism around global demand. Basic materials also performed strongly, benefiting from firm commodity prices and inflation-hedging flows.
On the flip side, financial services emerged as the weakest sector, falling over 2.5%, as concerns lingered around interest rate expectations and margin pressures. Real estate also struggled, reflecting sensitivity to higher yields and financing costs.
This split underscores a cautious rotation, with investors favouring inflation-resistant and commodity-linked sectors while trimming exposure to rate-sensitive industries.
Bonds and commodities tell a mixed story
In the fixed-income market, yields were largely stable. The 10-year US Treasury yield held steady at 4.24%, while the 2-year yield edged slightly higher, suggesting continued uncertainty around the near-term path of monetary policy.
Commodities, however, told a stronger story:
• Crude oil prices climbed more than 3%, supporting energy stocks.
• Gold surged sharply, reinforcing its role as a hedge amid macroeconomic uncertainty and cautious risk sentiment.
Top-performing stocks: biotech and materials shine
The week’s standout performers were driven by strong moves in biotechnology, healthcare, and materials:
• Intellia Therapeutics led the market with a double-digit weekly gain, despite still trading well below its estimated fair value, reflecting renewed speculative interest in biotech names.
• Qiagen and Moderna also posted strong gains, benefiting from sector momentum and improving sentiment around healthcare innovation.
• Albemarle, a key player in lithium and battery materials, continued its impressive rally, supported by long-term demand expectations tied to energy transition themes.
• Telefonica Brasil rounded out the gainers, reflecting renewed interest in emerging-market telecom exposure.
Worst performers: valuation pressures resurface
On the downside, several stocks faced sharp pullbacks:
• Array Digital Infrastructure was the week’s worst performer, declining sharply as valuation concerns resurfaced following a strong prior run.
• Roblox and Nebius Group also fell significantly, reflecting investor caution toward high-growth and richly valued tech names.
• Abbott Laboratories declined amid weaker sentiment in defensive healthcare, while Shopify slipped despite its strong long-term performance, as investors reassessed growth expectations.
Overall, many of the laggards were stocks trading above estimated fair value, reinforcing the market’s current sensitivity to valuation.
️ What investors are watching next
The coming week is packed with potential market-moving events:
• Key economic data, including durable goods orders, consumer confidence, jobless claims, and producer prices
• A closely watched Federal Open Market Committee (FOMC) decision on interest rates
• Major earnings releases from heavyweight companies across technology, finance, healthcare, energy, and consumer sectors
These developments are likely to determine whether markets remain range-bound or regain momentum.
Big picture takeaway
The week’s trading pattern reflects a market in wait-and-see mode. While energy and commodities provided pockets of strength, weakness in financials and growth stocks kept overall performance subdued. With macro risks, earnings uncertainty, and central bank decisions in focus, investors appear selective rather than broadly bullish