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Week In Perspective | Powell Keeps Cool in the Hot Seat [19-January-26] Thumbnail

Week In Perspective | Powell Keeps Cool in the Hot Seat [19-January-26]

Market Insights

Updated: 19-January-2026

The Week on Wall Street

Stocks ended last week with modest losses after a volatile five days of market-moving economic data, geopolitics, and Fed drama.

The Standard & Poor’s 500 Index slid 0.38 percent, while the Nasdaq Composite Index skidded 0.66 percent. The Dow Jones Industrial Average edged down 0.29 percent. By contrast, the MSCI EAFE Index, which tracks developed overseas stock markets, rose 1.41 percent.1,2

Choppy Trading

Stocks started the week lower after pre-opening bell news that the Justice Department had launched a criminal investigation into Federal Reserve Chair Jerome Powell. A statement issued Tuesday morning by central bankers worldwide helped tamp down market volatility.3,4

The White House called for a 10 percent cap on credit card interest rates for 1 year, putting pressure on financial stocks. Meanwhile, news that headline inflation matched forecasts while core inflation came in cooler than expected was well received by investors.5,6

Despite solid retail sales and wholesale inflation reports for November, stocks were under pressure on Wednesday due to geopolitical tensions and disappointing Q4 results from a handful of financial stocks.7

Then chip manufacturers and banks led a rebound, recouping most of the week’s losses. Markets opened higher on Friday but then slid after the president backtracked on his preferred candidate to be the next Fed Chair. His comments led investors to believe that his new choice would be more market-friendly but perhaps less likely to adjust interest rates.8

Fed Drama

Tensions between the White House and the Federal Reserve escalated last week after the Justice Department issued a criminal indictment against Fed Chair Powell.

Powell, typically calm and collected in the face of criticism, posted an assertive video Sunday night. By the close of the week, however, investors seemed to have moved past the Fed drama as there was plenty of other news to follow.

This Week: Key Economic Data

Wednesday: Construction Spending* (Nov). Pending Home Sales.

Thursday: Weekly Jobless Claims. Gross Domestic Product, Q3 (first revision). Personal Consumption & Expenditures (PCE) Index* (Nov).

Friday: Consumer Sentiment. Purchasing Managers’ Index (PMI)—Services & Manufacturing.

* indicates publication of a report delayed by the government shutdown in October and November
Source: Investors Business Daily - Econoday economic calendar; January 16, 2026.
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.

This Week: Companies Reporting Earnings

Tuesday: Netflix, Inc. (FLIX), Interactive Brokers Group, Inc. (IBKR), 3M Company (MMM), U.S. Bancorp (USB)

Wednesday: Johnson & Johnson (JNJ), The Charles Schwab Corporation (SCHW), Prologis, Inc. (PLD)

Thursday: Procter & Gamble Company (PG), GE Aerospace (GE), Intel Corporation (INTC), Abbott Laboratories (ABT), Intuitive Surgical (ISRG), Capital One Financial Corporation (COF)

Source: Zacks, January 16, 2026.
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.

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  1. https://www.wsj.com/market-data
  2. https://www.investing.com/indices/msci-eafe
  3. https://www.cnbc.com/2026/01/11/stock-market-today-live-updates.html
  4. https://www.wsj.com/finance/latest-threat-to-fed-chair-powell-rattles-markets-65f12af0?st=4P2Z4B&reflink=article_email_share
  5. https://www.wsj.com/economy/central-banking/heads-of-leading-central-banks-back-feds-powell-dd95726f?mod=article_inline
  6. https://www.wsj.com/economy/central-banking/jamie-dimon-warns-political-interference-with-fed-would-push-up-rates-60ccfed6?mod=hp_lead_pos1
  7. https://www.cnbc.com/2026/01/13/stock-market-today-live-updates.html
  8. https://www.cnbc.com/2026/01/15/stock-market-today-live-updates.html





This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.