Stock Market News for Jan 14, 2026

U.S. stocks ended lower on Tuesday, with the S&P 500 and the Dow retreating from their earlier highs, as financial stocks struggled to maintain momentum, following a spate of proposals made by President Donald Trump over the past week. All three major indexes ended in negative territory.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) tumbled 0.8% or 398.21 points, to close at 49,191.99 points, after hitting an all-time high in the previous session.  

The S&P 500 declined 0.2%, or 13.53 points, to end at 6,963.74 points. Financials and communication services stocks were the worst performers.

The Financials Select Sector SPDR (XLF) declined 1.9%. The Communication Services Select Sector SPDR (XLC) fell 0.6%. The Consumer Staples Select Sector SPDR (XLP) gained 1.2%. Six of the 11 sectors of the benchmark index ended in positive territory.

The tech-heavy Nasdaq slid 0.1%, or 24.03 points, to finish at 23,709.87 points.

The fear gauge, CBOE Volatility Index (VIX), was up 5.69% to 15.98. Advancers outnumbered decliners on the NYSE by a 1.15-to-1 ratio. On the Nasdaq, a 1.31-1 ratio favored declining issues. A total of 18.68 billion shares were traded on Tuesday, higher than the last 20-session average of 16.4 billion.

On the Nasdaq, there were 2,068 new 52-week highs and 2,701 new lows. On the NYSE, there were 577 new 52-week highs and 77 new lows.

Concerns Grow Over Trump’s Recent Proposals

The fourth-quarter earnings season has begun, with a slew of major banks set to report their quarterly results this week. On Tuesday, JPMorgan Chase & Co. (JPM) reported its fourth-quarter results.

The company reported fourth-quarter 2025 earnings of $5.23 per share, beating the Zacks Consensus Estimate of $5.01 per share. However, JPMorgan’s shares ended the day 4.2% lower on growing concerns over Trump’s recent proposals.

The President last week called for a 10% cap for one year on credit card interest rates, which could impact the profits of financial companies. JPMorgan’s CEO Jamie Dimon and other top officials also warned that Trump’s plan could hurt consumers. JPMorgan has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Trump’s proposal has seen financial stocks taking a hit this week. Tuesday’s declines were led by Visa Inc. (V), which fell 4.5%, while Mastercard Incorporated (MA) slid 3.8%.

Besides the call for a limit on credit card interest rates, Trump has come up with several other proposals, including calls to bar defense contractors from paying dividends or issuing stock buybacks. He has also called for a ban on large institutional investors from purchasing additional single-family homes.

Investors Digest Fresh Inflation Report

Stocks rallied at the beginning of Tuesday’s trading session after fresh data showed that inflation rose at a slower pace in December than expected. The Consumer Price Index (CPI) rose 0.3% sequentially in December and 2.7% from the year-ago levels, which were both in line with analysts’ expectations.

Core CPI, which excludes the volatile energy and food prices, rose 0.2% month over month and 2.6% on a year-over-year basis, lower than the consensus estimate of a rise of 0.3% and 2.8%, respectively.

The CPI data comes days after the release of the December jobs report, which suggests a slowing but still steady labor market. Investors are still hopeful about two interest rate cuts by the Federal Reserve this year, given the steady decline in inflation.

Economic Data

In other economic data released on Tuesday, the Commerce Department reported that new home sales declined 0.1% to a seasonally adjusted annualized rate of 737,000 units in October. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research