The Day the Records Paused
Honestly, it feels like the stock market just needed to catch its breath. After the S&P 500 and the Dow Jones Industrial Average spent Monday hitting fresh all-time highs, Tuesday, January 13, 2026, brought a bit of a reality check. The Dow ended up shedding about 400 points—roughly a 0.8% slide—closing at 49,191.99.
It wasn’t a total bloodbath, though. The tech-heavy Nasdaq only dipped 0.1%, basically a rounding error, finishing at 23,709.87. Meanwhile, the S&P 500 slipped about 0.2% to land at 6,964. You’ve probably seen the headlines about inflation and banks, but there is a lot more moving under the surface today, especially with some wild drama involving the Federal Reserve and some massive moves in the chip sector.
Inflation Isn't Gone, but It's Not Screaming Either
Everyone was waiting for the December Consumer Price Index (CPI) report this morning. It basically came in right where people expected, which is a relief but also kind of a snooze for anyone hoping for a massive rally. Headline inflation rose 2.7% year-over-year.
The "core" prices—the stuff that leaves out the crazy swings in gas and food—actually looked a little better, coming in at 2.6%. That is the lowest we've seen since 2021. Even so, the market didn't exactly throw a party. Why? Because "sticky" is the word of the day. Rent, medical care, and eating out are still getting more expensive, even if used cars and gas are finally chilling out.
Why JPMorgan and the Banks Dragged Us Down
Today officially kicked off the Q4 earnings season, and the banks took the first hit. JPMorgan Chase (JPM) is the big dog here, and even though they technically "beat" what analysts expected for profit, their revenue was a bit light. Plus, they took a one-time hit because of that deal to buy the Apple Card credit card portfolio.
Shares of JPMorgan dropped over 4%, and when the biggest bank in the country stumbles, it usually drags the rest of the financial sector with it. Jamie Dimon, the CEO, sounded okay about the economy—he says people are still spending—but the "sticky inflation" he mentioned in the report clearly spooked some traders.
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The AI Trade is Saving the Nasdaq
If it weren't for the chipmakers, today’s stock market report would look a lot uglier. While the Dow was hurting, Intel (INTC) and AMD were absolutely on fire.
Intel jumped over 7% today. KeyBanc analysts basically said that Intel and AMD have already "sold out" their AI server capacity for pretty much all of 2026. Think about that. We are only thirteen days into the year, and they are already out of stock for the next 11 months.
- Intel (INTC): Up 7.3%, closing at $47.29.
- AMD: Surged 6.4%.
- Moderna (MRNA): Actually led the S&P 500 gainers, soaring 16% after their CEO, Stéphane Bancel, raised their sales forecast for the year.
Intel's "18A" production method is finally starting to look like a real competitor to Taiwan Semi. It's a massive turnaround story that most people had written off a year ago.
Politics, the Fed, and "Debasement"
There is some weird stuff happening in D.C. that you won't always see in a standard ticker. There are rumors flying about a Justice Department investigation into Fed Chair Jerome Powell. The White House says they didn't order it, but the uncertainty is making people nervous about whether the Fed can stay independent.
This has triggered what some pros call the "debasement trade." Basically, when people stop trusting the dollar or the government's handle on the economy, they buy stuff that isn't tied to paper money.
- Gold and silver hit new all-time highs yesterday and held most of those gains today.
- Bitcoin is hovering around $94,300, recovering from a quick dip down to $90,000 earlier this morning.
- Copper is at record highs because of supply shortages.
Airlines and Retail: A Mixed Bag
It wasn't just banks and chips moving. Delta Air Lines (DAL) had a rough day, falling 2.5% despite beating their profit targets. The problem was their outlook for the rest of 2026—investors thought it looked a little weak, even though corporate travel is supposedly bouncing back.
Salesforce (CRM) also got hammered, dropping roughly 7%. Apparently, people aren't thrilled with some updates they made to the Slackbot AI features. It just goes to show that just putting "AI" on something isn't a guaranteed win anymore; it actually has to work.
What This Means for Your Portfolio
So, where does this leave us? The market is at a "decision point." We’ve got the S&P 500 sitting just below that psychological 7,000 mark. Some analysts, like Barry Bannister at Stifel, think the "sugar high" of the last three years is finally wearing off and we're in for a "slow grind" for the rest of the year.
Others are looking at the technicals. The S&P, Dow, and the Russell 2000 (small caps) are all squeezed into tight patterns. Usually, when things get this tight, a big move is coming—one way or the other—by the end of January.
Actionable Steps for Investors
Don't panic about the Dow's 400-point drop. It's a pullback from a record high, not a crash. Here is what you should actually do:
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- Check your tech exposure: If you're heavy on chips like Intel or AMD, you're sitting pretty today, but don't forget to rebalance. High demand is great, but pricing in an entire year of sales in one week is risky.
- Watch the 10-year Treasury yield: It's sitting around 4.18% right now. If that starts climbing back toward 4.5%, expect more pressure on stocks.
- Keep an eye on the "debasement" assets: If the drama with the Fed and the White House continues, gold and Bitcoin might continue to act as the "chaos hedge."
- Review your bank stocks: The JPMorgan report suggests the "easy money" for banks might be over as interest rate margins tighten.
The stock market report for today shows a market that is deeply divided between the "old economy" (banks, airlines) and the "new economy" (AI, semiconductors). Staying diversified isn't just a cliché right now; it's the only way to survive the volatility of the coming weeks as more earnings reports roll in.
Keep an eye on the retail sales data coming later this week. That will tell us if the consumer is actually as resilient as Jamie Dimon thinks they are. If those numbers miss, the "slow grind" might turn into something a bit more slippery.