Weekly Market Recap: Friday, January 16, 2026 — Market Analysis

Key Themes This Week

• •The Russell 2000 stole the spotlight this week, posting its 11th consecutive day of outperformance versus the S&P 500—the longest streak since the 1980s—as investors rotated into small-cap stocks.
• •December inflation data came in cooler than expected with core CPI rising just 0.2% monthly, reinforcing market expectations that the Federal Reserve will hold rates steady at its January meeting.
• •Major banks kicked off earnings season with mixed results, as JPMorgan and Goldman Sachs delivered solid trading revenues while political tensions around Federal Reserve independence created market uncertainty.