Market Update – January 28, 2026 | Nova Wealth Management

Markets have shown a notable shift in leadership so far this year, with several areas that lagged in 2025 beginning to outperform, while some of last year’s leaders have taken a pause.

Among large-cap technology names, performance has been mixed. Apple is down approximately 5% year-to-date, and Microsoft was also down about 5% at the close before declining further following its earnings report. Netflix is up roughly 3% year-to-date. Broadcom is down about 3%, Palantir is down approximately 11%, and Tesla is down around 1% so far this year.

Several software companies have struggled amid investor concerns that rapid advancements in artificial intelligence could disrupt traditional business models. Adobe is down about 15% year-to-date, Salesforce is down roughly 15%, and Intuit is down approximately 18%. These remain high-quality companies, but the market is clearly reassessing valuations as the competitive landscape evolves. As always, future outcomes remain uncertain.

From a broader market perspective, the S&P 500 is up approximately 2% year-to-date. Interestingly, the equal-weight S&P 500 is up closer to 3%, indicating broader participation and less reliance on a small group of mega-cap stocks. Small-cap stocks have performed well, with small-cap growth up around 6% year-to-date, while mid-cap growth is up approximately 5% to 6%.

Sector performance has also been encouraging in several areas. Energy has had a strong start to the year, up roughly 11% to 12%. Consumer staples, often viewed as defensive, are up about 6%. Industrials are up approximately 6% to 7%, and aerospace and defense have performed particularly well, rising around 9% to 10% year-to-date.

Technology as a whole is holding up, with the Nasdaq-100 (QQQ) up about 3% year-to-date, though leadership within the sector has narrowed. This rotation has benefited companies that struggled last year. For example, Costco is up approximately 11%, Home Depot is up about 9%, and Old Dominion Freight Line is up roughly 10% so far this year.

Financials continue to lag, with the sector down approximately 2% to 4% year-to-date. International markets, however, are once again outperforming the S&P 500, up roughly 3% to 5%. Healthcare is essentially flat for the year.

In alternative assets, gold has been a standout performer, up approximately 25% year-to-date and about 72% since the end of the first quarter of last year. Utilities are modestly higher, up around 2%. Bonds are largely flat, with yields holding relatively steady. As expected, the Federal Reserve did not lower interest rates at its most recent meeting.

Overall, the early part of 2026 has been characterized by rotation rather than broad market weakness, highlighting the importance of diversification and discipline during changing market environments.