January 10, 2026 Market Update

Market Recap: Maduro, Manufacturing, and the Fed: Markets Hold Steady Amid Uncertainty.

U.S. stocks started last week on a positive note after the U.S. military captured Venezuela's President Nicolás Maduro, which boosted energy and financial stocks.  Momentum softened midweek, but major indices like the Dow and S&P 500 finished the week at record highs as investors appraised December jobs report.

In the bond market, prices declined modestly and yields moved marginally lower, reflecting investor uncertainty.  Market participants digested minutes from the December Federal Reserve meeting that indicated committee members remained divided on future policy actions, and S&P Global data showing that U.S. manufacturing activity expanded at its slowest pace in five months in December, adding to investor caution.

Despite a good deal of economic, policy, and global uncertainty, Mr. Market has remained surprisingly calm as the new year begins.  Equity and bond market participants appear to share the view that economic growth is slowing but not on the verge of stalling, and that many of last year’s most disconcerting risks may prove less severe than once feared.  Only time will tell if that proves to be the case.

Market Performance.

Market Commentary: The King Has Retired; Long Live the King.

Warren Buffett’s announcement that he plans to step back from day-to-day leadership at Berkshire Hathaway marks the end of one of the most remarkable chapters in modern financial history.  For more than six decades, Mr. Buffett was not just a successful investor but a steady presence through bull markets, crashes, bubbles, and panics. 

Buffett’s influence extended far beyond Berkshire’s balance sheet.  He and his long-time partner Charlie Munger helped shape how generations of investors think about risk, patience, and discipline.  While markets have grown faster, more complex, and more data-driven, Buffett remained committed to a simple idea: buy high-quality businesses at reasonable prices and hold them for the long term.

For investors, Buffett’s success is strong evidence that although markets will evolve, leadership will change, and new narratives will emerge, the fundamentals of investing success remain: discipline, patience, and a long-term perspective.  Those principles served as Buffett’s guideposts during his career, and they remain just as applicable today. 

In Case You Missed It:  Talk About a Comeback.

When trading stopped on April 8, the S&P 500 was down by more than 16% for the year, its fifth-worst start in history.  It finished the year up more than 16%, staging the kind of comeback most football teams only dream of.