Key Points:
- The S&P 500 and Dow Jones posted their ninth consecutive monthly gain.
- Small-cap stocks outperformed the broader market with a 5.3% jump.
- Microsoft stock plunged 10% amid worries over high AI spending.
- Gold and silver prices crashed historically to end the month.
US stock markets survived a chaotic final week to finish January with solid gains. The S&P 500 and Dow Jones Industrial Average secured their ninth straight month of growth, proving that the bull market still has legs. While the big indexes rose modest amounts, small companies were the real winners. The Russell 2000 index jumped more than 5.3%, signaling that investors are spreading their money beyond just the massive tech firms.
The month ended with major news from the White House. President Donald Trump nominated Kevin Warsh to replace Jerome Powell as the next Chair of the Federal Reserve. The move settled some fears about the central bank’s future, but it sent shockwaves through other markets. Specifically, precious metals crashed hard.
Silver plunged 30%, and gold fell 11% in a historic sell-off as traders adjusted their risks based on the new leadership pick. Earlier in the week, the Fed decided to keep interest rates steady, hitting pause on its recent cutting spree.
Big Tech earnings created plenty of drama. Microsoft suffered its worst day in six years, dropping 10% after investors panicked about its massive spending on artificial intelligence infrastructure.
However, Apple saved the mood by reporting a blowout quarter. The tech giant pulled in over $143 billion in revenue, driven by what they called “staggering” demand for the iPhone 17. Meta also posted strong results, helping to balance out the tech sector.
Energy and telecom stocks also had a good month. Verizon surged nearly 12% in a single day after giving a sunny profit forecast, while oil giants Chevron and Exxon Mobil beat expectations thanks to record production. Despite the volatility, the market showed incredible resilience to start 2026.
