If you took a quick glance at your portfolio today, Tuesday, January 13, 2026, you probably noticed a bit of a sea of red. Honestly, it wasn't the best day for the blue chips. While the tech world stayed somewhat afloat, the Dow Jones Industrial Average basically fell off a cliff this afternoon, shedding nearly 400 points.
By the time the closing bell rang on Wall Street, the Dow was down roughly 0.8%, landing at 49,191.99. It’s a bit of a reality check. Just yesterday, we were celebrating fresh record highs, but today the market decided to pump the brakes. Hard.
So, what is the Dow doing right now besides making investors sweat? It’s navigating a weird collision of "good" inflation news and "bad" corporate earnings. We saw the December Consumer Price Index (CPI) report hit the tape this morning, and it actually looked decent. Inflation rose 2.7% year-over-year, which matched what everyone expected. Core prices, which skip the volatile stuff like your grocery bill and gas tank, were even better at 2.6%.
Usually, that’s the kind of thing that sends stocks higher because it means the Fed might finally chill out. But today, Wall Street had other plans.
Why the Dow is underperforming the Nasdaq today
You’ve probably noticed that while the Dow dropped 0.8%, the Nasdaq only dipped about 0.1%. This divergence is kind of the big story. The Dow is heavy on banks and "old school" companies, and those are the exact sectors getting hammered today.
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JPMorgan Chase (JPM) really started the fire. They kicked off earnings season, and the results were, well, messy. The stock slid over 4% after missing revenue targets. Part of the blame went to their new deal as the Apple Card issuer, which apparently ate into their profits more than analysts liked. When the biggest bank in the country stumbles, it drags the whole index down with it.
Then you have Salesforce (CRM). It was the single worst performer in the Dow today, tanking about 7%. Why? They pushed an update to their Slackbot AI assistant that left investors feeling a little skeptical about their competitive edge. In a market that is obsessed with AI "winners," any sign of a stumble gets punished immediately.
Compare that to the chipmakers. Intel (INTC) and AMD surged over 7% and 6% respectively. Because the Nasdaq is packed with these guys, it didn't feel the pain nearly as much as the Dow.
The Trump effect and the 10% cap
We also have to talk about the political volatility. President Trump has been floating the idea of a 10% cap on credit card interest rates. Jamie Dimon, the CEO of JPMorgan, didn't hold back today, warning that such a move would "damage the industry" and ironically hurt consumer spending by limiting credit.
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This isn't just theoretical talk anymore. Investors are pricing in the reality that bank margins might get squeezed if this policy actually takes flight. It’s why you’re seeing Bank of America and Wells Fargo sliding right alongside JPMorgan.
What is the Dow doing right now in terms of the bigger picture?
Despite today’s 400-point haircut, the Dow is still up about 2.3% for the year 2026. It’s important to keep that perspective. We are only thirteen days into the new year.
However, there’s a growing debate among the pros about where we go from here. John Rogers, the chairman of Ariel Investments, made some waves today at an event in Chicago. He’s predicting a "small recession" by the end of the year and thinks the Dow could actually retrace 15% to 20%. His logic? The "wealthy consumer" is still spending on Vegas trips and cruises, but the "average consumer" is starting to buckle under high living costs.
On the flip side, Diane Swonk at KPMG thinks we’ll dodge a recession entirely. She’s more focused on the three rate cuts she expects from the Fed this year. It’s a classic Wall Street standoff.
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A few things that actually went right today
It wasn't all doom and gloom if you knew where to look. While the big Dow components were struggling, a few other spots in the market were actually on fire:
- Moderna skyrocketed 17% after raising its financial forecast.
- Netflix gained about 1% following an upgrade from HSBC; people are still betting on them acquiring Warner Bros. Discovery.
- Gold and Silver continue to hover near record highs, acting as a safety net for people worried about the banking drama.
Actionable steps for your portfolio
If you're wondering how to handle this volatility, you've got to look past the daily point swings. The Dow's 400-point drop is a reminder that the "earnings bar" is set very high right now. Companies can't just be profitable; they have to be perfect.
- Check your banking exposure. If your portfolio is heavily weighted in the big banks, the next few weeks of earnings calls from Citigroup and others will be critical. Watch for comments on that 10% interest rate cap.
- Rebalance into value. The Dow is currently trading at a price-to-earnings (P/E) ratio of about 23.9. That’s significantly cheaper than the Nasdaq’s 33.5. If tech starts to cool off, the Dow’s "value" stocks might actually become the safer haven.
- Watch the 10-year Treasury. It’s sitting around 4.18% right now. If that yield starts to drop further because of the soft inflation data, it could provide a floor for the Dow’s industrial and utility stocks.
- Don't panic on the AI hype. Yes, Intel and AMD are winning today, but the Salesforce drop shows that AI is a double-edged sword. Make sure you aren't overpaying for "AI promise" without "AI profits."
The market is clearly in a "prove it" phase. Today's action suggests that while the macro numbers (inflation) are improving, the micro numbers (company profits) are where the real risk lives. Keep an eye on the 49,000 level for the Dow. If it breaks below that, we might be looking at a much deeper correction before the month is out.