Investment Week at a Glance
Stocks finished mixed for the week. The Dow Jones Industrial Average rose 2.5%, the S&P 500 was down 0.1%, and the NASDAQ fell 1.8%. Foreign stocks (MSCI EAFE) were down for the week, falling 0.5%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.21%. (Data source: Wall Street Journal)
Tech Stocks Trail to Start 2026
In 2025, technology and communication services led the way higher for the overall market. The opposite is true for 2026, as the two have been at the bottom of the market to start the year off. Energy, materials, consumer staples, & industrials are all up 10%+ in 2026, while technology and communication services are negative for the year. This rotation comes as some skepticism about AI investment and valuations of those companies has come into question. While many are still bullish on AI, some volatility is to be expected with any new technology, just as we have seen.
Economists Upgrade U.S. Growth Forecasts
U.S. GDP growth has continued to be strong in recent quarters, and now economists are raising their forecasts for projected GDP growth. Estimates have nearly doubled since “Liberation Day” nearly a year ago, as the impact of tariffs was unknown. Now, AI investment, a strong consumer, and a labor market that seems to be stabilizing could drive economic growth. Investors will continue to keep an eye on the economy, but many believe that overall, it is in a healthy position.
Amazon Stock Drops 12%
Amazon’s stock dropped last week after the company reported its quarterly results, slightly missing earnings but beating expectations on revenue. The stock took a tumble as investors questioned whether all the AI investment would pay off. They anticipate $200 billion in capital expenditure in 2026 as many of the large tech companies ramp up investment. While the announcement of these investments was treated positively by investors in 2025, the same cannot be said for 2026. Time will tell if these large investments pay off or come back to bite the giant companies. (CNBC)
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Quiz
What was the average cost of a 30-second Super Bowl commercial this year? (Scroll Down for Answer)
- $4 million
- $8 million
- $10 million
- $12 million
Answer:
2. $8 million. The cost continues to rise for Super Bowl commercials as some companies paid more than $10 million for their slot during the Super Bowl. In the first Super Bowl commercials went for $37,500.
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