The vibe on Wall Street right now is basically a mix of "everything is great" and "wait, are we flying too close to the sun?" If you’ve been staring at the how did the stock market do today graph, you probably noticed a bit of a green bounce this Friday morning, January 16, 2026. After a couple of days where the banks were dragging everyone down, things are finally looking up again.
Honestly, the big story isn't just that the numbers are green. It’s that the S&P 500 is currently flirting with the 7,000 mark. That’s a massive psychological level. When you look at the 1-day chart, you’ll see the Dow Jones Industrial Average (US30) sitting around 49,558, up about 0.60%. The S&P 500 is trailing slightly behind but still up roughly 0.40% to reach 6,972.
It’s a weird time. On one hand, you’ve got AI companies like Taiwan Semiconductor (TSMC) reporting absolutely massive earnings—up 35%—and on the other, there’s this constant background noise about geopolitical drama and the new administration’s trade policies.
Why the Graph Looks This Way Today
If you're wondering why the line is moving up today, you can thank the "chip dip." Yesterday, everyone was worried about tech, but today, semiconductors are carrying the team. TSMC basically told the world that their capacity is "very tight" because demand for AI chips is just through the roof. That sent Nvidia, AMD, and Broadcom into a mini-rally this morning.
But it's not just tech. The "rotation" is real.
Investors are starting to dump some of their overpriced growth stocks and moving into "boring" stuff like materials, industrials, and financials. You’ve probably noticed that while the big tech names get the headlines, the Russell 2000 (the small-cap index) has actually been outperforming the Nasdaq recently.
✨ Don't miss: The Big Buydown Bet: Why Homebuyers Are Gambling on Temporary Rates
The Bank Earnings Hangover
Earlier this week, the major banks like JPMorgan Chase, Wells Fargo, and Citigroup reported earnings, and... well, it wasn't pretty. Shares of JPMorgan fell about 5% over two days. Why? Because there's a lot of talk about a potential 10% cap on credit card interest rates. If that happens, the banks lose a ton of money.
So, when you see those red dips in the weekly graph, that’s usually what’s happening. Today’s recovery shows that investors are trying to look past the bank drama and focus on the fact that the broader economy—specifically manufacturing—actually looks pretty decent.
Geopolitics and Your Portfolio
Let's talk about the elephant in the room: President Trump’s recent moves.
Yesterday, there was a major deal reached with Taiwan. Essentially, Taiwanese tech firms agreed to dump $250 billion into U.S. soil for chip factories. In exchange, their tariffs get capped at 15%. This is a huge deal for the supply chain and it’s a big reason why the tech sector didn't stay down for long.
Also, crude oil prices are sliding. WTI Crude is down under $59 a barrel because the administration signaled it might hold off on any imminent strikes against Iran. For you and me, that usually means cheaper gas and less "inflation anxiety," which the stock market loves.
🔗 Read more: Business Model Canvas Explained: Why Your Strategic Plan is Probably Too Long
What the Experts are Saying
- Cathie Wood (ARK Invest): She's calling this a "Golden Era" reminiscent of Reaganomics—think deregulation and tax cuts.
- David Sekera (Morningstar): He's a bit more cautious, noting that while things look good, 2026 is going to be a "stock picker’s market" rather than a "just buy everything" market.
- Man Group Researchers: They're warning about "tail risks." Basically, things like geopolitical power vacuums in Latin America (like the recent situation in Venezuela) could cause sudden spikes in volatility that don't show up on the graph until it's too late.
Decoding the Numbers
If you’re looking at the how did the stock market do today graph, here’s the quick breakdown of what the tickers are telling you:
The Winners Today:
- Goldman Sachs: Up over 4.5% after a solid earnings beat.
- Nvidia: Recovering from yesterday's dip, up about 2%.
- Rare Earth Stocks: Companies like MP Materials are surging because of new executive orders regarding import restrictions on rare minerals.
The Losers Today:
- IBM & Salesforce: Taking a bit of a hit, down 2-3%.
- Oil-Linked Stocks: Since oil prices are falling, companies like ONGC and Occidental are feeling the squeeze.
- Rivian: Down big (around 7%) after a UBS downgrade and some news about air bag inflator recalls.
Actionable Insights for Your Friday
So, what do you actually do with this information? Staring at the graph is fun, but it doesn't pay the bills.
First off, check your sector exposure. If you’re 100% in tech, you’re riding a rollercoaster right now. The market is clearly rotating into cyclicals and industrials. You might want to see if your portfolio has any "old school" weight to balance out the AI madness.
💡 You might also like: Why Toys R Us is Actually Making a Massive Comeback Right Now
Secondly, keep an eye on the 10-year Treasury yield. It's hovering around 4.17%. If that number starts creeping up toward 4.5%, it usually puts a lid on how high stocks can go. Higher yields mean higher borrowing costs for companies, which eventually eats into those record-breaking profits.
Lastly, don't FOMO into the S&P 7,000. It’s just a number. The Relative Strength Index (RSI) for the S&P is around 64. That’s high, but not "overbought" yet (which is usually 70). There’s still room to run, but the easy money has probably already been made this month.
If you're looking to make a move, watch the close today. Friday afternoons often see "profit-taking" where traders sell off their winners to lock in cash for the weekend. If the market holds its gains through 4:00 PM ET, it’s a very bullish sign for next week.
Next Steps for You:
- Review your small-cap holdings: The Russell 2000 is showing more "room to run" than the tech-heavy Nasdaq right now.
- Monitor the 7,000 level: If the S&P 500 hits 7,000 and bounces off it, we might see a short-term correction.
- Check your energy stocks: With oil dropping, it might be time to trim some gains there if you haven't already.
The market is closed this coming Monday, January 19, for Martin Luther King Jr. Day, so keep in mind that liquidity might get a bit thin as we head into the weekend. Don't get caught in a "flash" move just because nobody is at their desks.