Nasdaq Slightly Up, S&P 500 Flat as Fed Offers Few Surprises

Jan 29, 2026, 2:33 AM

Hover over text to view sources

US stocks experienced mixed outcomes on Tuesday, as investors processed new job data and statements from Federal Reserve officials regarding interest rates. The Nasdaq Composite climbed by 0.4%, while the S&P 500 edged up by 0.1%, both hitting new records during the session. The Dow Jones Industrial Average, however, closed down nearly 0.2%, recovering from session lows but still unable to secure a positive finish.

The Bureau of Labor Statistics reported that job openings rose by 372,000 in October, reaching 7.74 million, surpassing expectations of 7.52 million. This data is part of a series of economic indicators that will culminate in Friday's crucial monthly payrolls report. The Job Openings and Labor Turnover Survey (JOLTS) also revealed a decrease in hiring, while the quits rate, which indicates worker confidence, increased to 2.1% from 1.9% in September.

In tandem with the job data, comments from Fed officials indicated a willingness to move toward a more neutral interest rate policy. Policymakers such as Mary Daly, Austan Goolsbee, and Adriana Kugler suggested that the Fed may continue to lower rates, prompting a rise in Treasury yields. The yield on the 10-year note inched up about 3 basis points, reaching approximately 4.22%. Traders are now estimating a 72% chance of a quarter percentage point rate cut at the Fed's December 18 meeting, an increase from 62% just a day prior.

The mixed performance in stocks reflects underlying market dynamics. While the S&P 500 and Nasdaq have recently set new records, some analysts believe the market may be experiencing a natural pause following a significant upward trajectory. David Wagner, head of equities at Aptus Capital Advisors, noted that the market appears to be undergoing a rotation, which could lead to intraday volatility.

Despite the overall positive outlook, the specter of a government shutdown loomed over the market. The Senate had failed multiple times to pass funding proposals, raising concerns about potential economic impacts. Some experts are closely watching how this situation might affect consumer sentiment and market stability in the near term.

As the market continues to digest these developments, the broader economic landscape remains stable. Earnings growth has been robust, and many companies have reported positive earnings surprises, contributing to the market's strength this year. The S&P 500's price-to-earnings ratio remains relatively unchanged since the beginning of the year, indicating that the gains are driven more by earnings than by investor exuberance.

In conclusion, the mixed results in the stock market reflect both investor caution and optimism. With the Federal Reserve hinting at potential rate cuts and job openings showing resilience, the economic outlook remains constructive, although vigilance is necessary as the year draws to a close.

Mortgage and Refinance Rates Stabilize on February 1, 2026

As of February 1, 2026, mortgage rates have entered a favorable range for buyers and refinancers. The average 30-year fixed mortgage rate is 5.91%, providing an opportune moment for those looking to secure financing.

What Kevin Warsh's Fed Chair Nomination Means for Mortgage Rates

Kevin Warsh's nomination as Federal Reserve chair could significantly impact mortgage rates. His past hawkish stance on interest rates may lead to concerns among homebuyers, while his focus on monetary policy adjustments could offer new pathways for affordability.

Housing Market Surges as Economy Struggles: A Reverse Recession?

Despite a struggling economy, the US housing market continues to see price increases, creating a paradoxical situation described as a 'reverse recession.' Analysts attribute this phenomenon to high home prices and mortgage rates, which are limiting buyer activity while current homeowners remain reluctant to sell.

Fed Meeting Recap: Powell Confirms Economy on Firm Footing

In a recent Federal Reserve meeting, Chairman Jerome Powell affirmed that the US economy is on 'firm footing' and noted that current interest rates are not restrictive. Powell emphasized the importance of monitoring inflation and labor market conditions while navigating ongoing uncertainties.

Fed Holds Interest Rates Steady Amid Economic Uncertainty

The Federal Reserve announced it will maintain interest rates, pausing cuts amid rising economic uncertainties linked to inflation and trade policies. While the Fed anticipates potential rate cuts later this year, it is closely monitoring labor market trends and inflationary pressures.