U.S. markets closed down the final trading day of the month after news of impending tariffs sparked renewed market jitters. It was a rollercoaster January, characterized by another all-time closing high for the S&P 500®, followed by a sharp selloff after a new AI model from China sent shockwaves through the world. Nevertheless, thanks to relatively strong earnings results and robust consumer spending, the S&P 500 remained resilient, concluding the month with a 3% gain.
Mid and small caps outperformed their large-cap peers, with the S&P MidCap 400® and S&P SmallCap 600® up 4% and 3% respectively. Concerns surrounding Fed rate cut uncertainty and inflation continued to weigh on investors.
Most sectors posted gains in January, led by Communication Services, Health Care and Financials. Information Technology was the only laggard, down 3% upon AI related headwinds.dashboard-us-2025-01
