Risk Managed Strategy Funds

John Hanccok: Weekly Market Recap Week Ended January 30

February 3, 2026

January gain

The U.S. stock market maintained modestly positive momentum in January, with each of the three major indexes posting monthly gains of monthly gains of around 1% to 2%. For the S&P 500, it was the eighth positive monthly result out of the past nine; for the Dow, it was the ninth positive month in a row.

 

Fed chair nomination

President Trump on Friday nominated former U.S. Federal Reserve Governor Kevin Warsh to replace Jerome Powell when the current Fed chair’s term ends in mid-May. Warsh now faces Senate confirmation. The nomination came two days after the Fed fulfilled market expectations by keeping its benchmark rate unchanged, initiating a policy pause after approving rate cuts at its three previous meetings.

 

Earnings uptick

Earnings season expectations continued to rise approaching the mid-point of quarterly reporting. As of Friday, analysts projected that earnings for S&P 500 companies rose 11.9% in the fourth quarter, up from an 8.2% forecast the previous week, according to FactSet. The figures are based on the roughly one-third of companies that had reported results as of Friday, plus projections for those that haven’t yet released their numbers.

 

Jobs ahead

A monthly jobs report due out on Friday will show whether recent labor market weakness extended into January. In December, the economy generated a below-forecast 50,000 new jobs, capping a year in which payroll gains averaged 49,000 per month—less than one-third of 2024’s 168,000 average.

 

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