US Stock Market Weekly commentary / stock picks- Week ending Jan 23, 2026

Market Rotation Beneath a Flat Surface

Despite major U.S. indices finishing the week nearly unchanged, significant sector rotation is unfolding beneath the surface as investors reposition ahead of key earnings and macro events. Market breadth weakened, with more stocks declining than advancing, signaling underlying caution even as technology and consumer discretionary rebounded after early-week geopolitical and tariff-related jitters. Cooler inflation data and stronger GDP revisions supported sentiment, but attention now shifts to the Fed decision and earnings from mega-cap leaders. Leadership has rotated toward materials, energy, and precious metals amid global uncertainty, while semiconductors remain resilient within tech even as software lags. Defensive positioning is quietly increasing, with consumer staples outperforming discretionary and financials pressured by regulatory concerns. With policy uncertainty, shifting global capital flows, and mixed sector performance, markets appear set for continued volatility and stock-specific opportunities rather than broad index-driven gains.