Market watchers are staring at their screens today, Sunday, January 18, 2026, trying to make sense of a landscape that feels fundamentally different from the tech-obsessed frenzy of the last few years. If you’re checking your portfolio and asking how did S&P 500 do today, the short answer is that the index is currently resting after a week of intense "under the hood" reshuffling.
The markets are closed for the weekend, but the ripples from Friday’s closing bell are still being felt across every trading desk in the country. We ended the week with the S&P 500 sitting at 6,944.47. It was a fractional drop of about 0.06% on Friday, but don't let that tiny number fool you. There is a massive civil war happening inside the index right now.
The big story isn't the price. It's the movement.
The Great Tech Divorce
For years, the S&P 500 was basically just five or seven tech companies in a trench coat. If Apple and Nvidia were happy, the index was happy. Honestly, that's not the case anymore.
We are seeing a brutal "rotation" out of the Magnificent Seven. While the S&P 500 is actually up about 1.4% so far in 2026, the tech heavyweights are dragging their feet. Apple and Meta have both seen 6% haircuts just in the first few weeks of January. Microsoft is down nearly 5%.
Why? Because traders are finally looking for deals elsewhere.
The money is moving into "boring" sectors. We’re talking about consumer staples—the companies that make your toothpaste and cereal—which jumped 3.7% last week alone. Real estate and industrials are suddenly the prom queens of the NYSE. It’s a weird shift, but a healthy one. When more stocks participate in a rally, the whole house is less likely to fall down if one tech giant misses an earnings report.
The Trump Effect and Fed Independence
You can’t talk about the market today without mentioning the political circus. President Trump’s recent attacks on Federal Reserve independence have kept everyone on edge. There’s a lot of "angst," as the analysts like to call it.
The Justice Department recently launched a criminal probe into the Fed Chair, which sounds like something out of a techno-thriller but is actually our current reality. Usually, this kind of drama would send stocks into a tailspin. Instead, the market is climbing.
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Investors seem to be betting on the "Trump 2.0" annualized returns, which have historically been quite high. However, the shadow of tariffs and trade wars is starting to show up in the data. The Nasdaq, for instance, took a hit when the new tariff announcements started rolling in, proving that the market’s "bull" status is still a bit fragile.
Key Numbers from the Most Recent Session:
- Final S&P 500 Level: 6,944.47
- The Equal-Weight Win: The Invesco Equal Weight S&P 500 ETF (RSP) is up 3.9% this year, crushing the standard cap-weighted index.
- The Volatility Check: The VIX is sitting around 15.71, which is relatively calm despite the headlines.
Are We in a Bubble?
People love to scream "bubble" the moment things get good. It's almost a hobby for some economists.
Looking at the history of the S&P 500, we’ve seen three-year runs like this before—specifically in 1999 and 2021. Both of those ended in a face-plant. From 2023 through the end of 2025, the index rose 78%. That is, frankly, insane.
But there’s a nuance here. Unlike the dot-com era, these companies are actually making boatloads of cash. The 16% gain in 2025 was driven by real earnings, not just hype. Analysts are still expecting double-digit profit growth for the rest of 2026. If the earnings show up, the prices can stay high. If they don't? Well, you've seen that movie before.
What You Should Actually Do Now
Don't panic about the red numbers in Big Tech. If you're a long-term investor, this is just the market "broadening out." It's actually what you want to see for a sustainable bull market.
Check your exposure to the "Magnificent Seven." If 40% of your money is in three stocks, you’re not diversified; you’re gambling on a few CEOs. Look into equal-weight index funds. They give you a piece of all 500 companies without letting Nvidia or Apple dictate your entire net worth.
Also, keep an eye on the PCE inflation data coming out this week. That’s the Fed’s favorite metric, and it’ll decide if we get another interest rate cut or if the "higher for longer" nightmare continues.
Basically, the S&P 500 is healthy, but it's changing its diet. It's moving away from the high-sugar tech gains and toward the protein of industrials and staples. Stay patient.
Actionable Steps:
- Review your sector weightings: See if you are over-concentrated in Info Tech.
- Watch the $6,900 support level: If the S&P 500 dips below this, we might see more tactical selling.
- Monitor the Fed probe: Any escalation in the Justice Department's investigation into the Fed could trigger a sudden spike in volatility (VIX).