Markets finished the week mixed as earnings took center stage. The S&P 500 edged up about three-tenths of a percent, while the Nasdaq and Dow slipped modestly. Across the style boxes, Small- and mid-cap stocks lagged. Value outperformed growth as the mid-cap 400 growth index closed nearly 2 percentage points lower.

Earnings season ramped up with the releases of four of the Magnificent Seven companies last week. As a result, Mega-cap earnings drove much of the volatility. Microsoft’s post-earnings pullback pressured technology and software stocks, while Meta’s strong results lifted communication services to the top-performing sector. Apple’s solid earnings drew a muted reaction, and Tesla rebounded late in the week after a SpaceX-related headline.

Outside of tech, energy stocks benefited from rising oil prices. Utilities gained amid severe winter weather that blanketed much of the US. Precious Metals dropped significantly last week after Gold and Silver both experienced a massive runup in 2025.

Finally, the Federal Reserve held interest rates steady at its January meeting, as expected. Relatedly, Kevin Warsh was nominated as the next Fed Chair. Participants took this news in stride and Treasury yields were little changed on the week.