Market Roundup: What Happened Yesterday and What We Can Expect Today (January 19)

US stocks decline, and yields jump to their highest level in months… Will the market recover today?

U.S. stocks ended last Friday slightly lower as uncertainty grew over the Federal Reserve’s next policy steps, pushing U.S. Treasury yields to their highest levels in four months.

The Nasdaq Composite and the S&P 500 each slipped by less than 0.1%, while the Dow Jones Industrial Average declined around 0.2%. For the week, all three major indices recorded modest losses of under 1%.

The pullback followed a rebound in the previous session, when markets snapped a two-day losing streak on the back of strong earnings from Taiwan Semiconductor Manufacturing Company and the announcement of a trade agreement between the United States and Taiwan.

In the technology sector, Micron shares surged nearly 8% after regulatory filings revealed that a board member had purchased nearly $8 million in stock during the week, boosting investor confidence in the semiconductor space.

By contrast, shares of Constellation Energy and Vistra fell sharply, by 10% and 8%, respectively, after reports indicated that the Trump administration is considering fundamental changes to the United States' largest electricity grid.

Treasury yields climbed following comments from President Donald Trump suggesting he may not appoint his close economic adviser, Kevin Hassett, as the next Federal Reserve chair when Jerome Powell’s term ends in May. Economists believe Hassett would likely support aggressive interest-rate cuts, aligning more closely with the president’s policy preferences.

The yield on the 10-year U.S. Treasury rose to 4.23%, its highest level since early September. Bond markets remained volatile throughout the week amid concerns over the Fed’s independence and mixed inflation data.

Regional banks wrapped up the bulk of their fourth-quarter earnings reports. Shares of PNC Financial rose 4% after the bank posted results that beat expectations, supported by a rebound in deal-making and advisory activity. In contrast, Regions Financial slipped 3% after issuing results and forward guidance that fell short of market forecasts.

In commodities markets, oil prices edged higher, with West Texas Intermediate crude rising 0.4% to $59.40 a barrel. Gold retreated to $4,595 an ounce after touching a record high earlier in the week, while silver fell more than 3% following its recent rally.

In digital assets, Bitcoin traded near $95,400 in afternoon dealings, down from levels above $97,500 earlier in the week. The U.S. dollar index was little changed at 99.35.

Within equities, the Philadelphia Semiconductor Index gained more than 1%, supported by advances in Micron, Broadcom, and Advanced Micro Devices. Meanwhile, software stocks such as AppFolio, Palantir, and Workday remained under selling pressure.

Market Outlook

Analysts expect the Nasdaq to face mild downside pressure at the start of the session if concerns surrounding Federal Reserve policy persist, particularly ahead of upcoming inflation data. Semiconductors are likely to continue outperforming software stocks in the near term, while regional banks could see selective gains if earnings trends point to improving net interest income.

In commodities, oil and gold are expected to track broader risk sentiment, while cryptocurrencies may remain volatile as regulatory uncertainty continues to weigh on the sector.