PUT IN WORK (2/2/2026)

We’re back with another issue! Last week was certainly an interesting one, with investors seemingly a bit all over the place by Friday's close. The Nasdaq (QQQ) ended down 0.1%, while the S&P 500 (SPY) finished up 0.4% thanks to a strong start that got gradually worn down by earnings reactions and Fed-related uncertainty.

Monday started the week on a solid note as investors got ready for mega-cap tech earnings and Wednesday’s Fed decision. The S&P 500 rose 0.5% and the Nasdaq added 0.4%, with plenty of attention on risk (tariffs and a possible government shutdown) while traders prepared for the week ahead.

Tuesday kept the momentum going, with the Nasdaq up 0.9% and the S&P 500 up 0.4%. The S&P 500 even managed to reach new all-time highs, though it didn’t manage to close above. The big mover wasn’t tech, though—it was health insurance. UnitedHealth (UNH) cratered after a report about a tiny proposed Medicare Advantage payment increase, and several other insurers got dragged down with it. Meanwhile, chip stocks helped keep the broader tone positive.

Wednesday saw investors holding their breath. Markets stayed relatively calm after the Federal Reserve kept interest rates steady, and the S&P 500 briefly tagged 7,000 for the first time, hitting yet another all-time high. Of course, the real focus shifted immediately to big tech earnings after the bell.

Thursday and Friday were where the week’s early gains started to leak out. Thursday saw the Nasdaq down 0.7% and the S&P 500 down 0.1%, pulled lower by Microsoft sliding about 10% and broader weakness in software.

Then Friday brought more negativity. The Nasdaq fell 0.9% and the S&P 500 dropped 0.4% as traders digested renewed uncertainty around the Fed—this time sparked by news that Trump nominated Kevin Warsh to succeed Jerome Powell as Fed chair. All in all, a slightly positive week for the broad market, though many portfolios are likely closer to flat after last week’s performance.

(Nasdaq ETF (QQQ) price from January 2025 - 2026 — each candle is 1 week. Chart provided by tradingview.com.)

PORTFOLIO UPDATE

While the stock market saw relatively flat performance, our portfolio was more on the negative side, with some of our long-term heavy hitters taking equally as heavy hits to the downside. Naturally, our portfolio follows the Russel 2000 (RUT) closer than it follows the Nasdaq and S&P 500. As such, our portfolio ended the week slightly worse than the broader market. That being said, we still plan to hold all stocks for the foreseeable future. As always, thank you for reading, and happy investing.