U.S. equity markets reopen following the Presidents’ Day holiday with conditions defined by Friday’s session, which left major benchmarks mixed on the day but lower for the week. The tone reflects continued sector rotation, moderating inflation pressures, and declining Treasury yields.

Equities finished the final session before the holiday little changed, though weekly losses marked the largest of 2026 to date.

The S&P 500 closed at 6,836.17, essentially flat on the day and down 1.4% for the week.

The Dow Jones Industrial Average gained 49 points to 49,500.93, ending the week lower by 1.2%.

The Nasdaq Composite declined 50 points to 22,546.67, bringing its weekly loss to 2.1%, the steepest among the major benchmarks.

Market leadership broadened further. Technology shares faced sustained pressure amid scrutiny over artificial intelligence-related capital expenditure and valuation sensitivity. In contrast, value-oriented sectors, small-cap stocks, energy, materials, and industrials outperformed. This rotation, first evident in January, has now extended for six consecutive weeks.

Inflation data drove the week’s primary move in fixed income markets.
The January consumer price index rose 2.4% year-over-year, below prior readings and consensus expectations. Core inflation also moderated.
The 10-year U.S. Treasury yield declined to 4.05%, while the 2-year yield eased to 3.41%.

Lower yields supported rate-sensitive sectors such as utilities and real estate and helped limit broader downside in equities despite growth-sector weakness.

The U.S. dollar index (DXY) ended the week near 96.88, reflecting a recalibration of Federal Reserve policy expectations.

The dollar has declined approximately 2.5% month-to-date, supporting international equity performance and commodities priced in dollars.

Commodity markets remained relatively stable into the holiday.

West Texas Intermediate crude closed at $62.89 per barrel, while Brent crude settled at $67.75. Both benchmarks posted their first consecutive weekly declines of the year as supply concerns eased.

Gold traded in a narrow range, holding above $2,600 per ounce in recent sessions, supported by softer yields and a weaker dollar.

No major U.S. economic releases are scheduled for Tuesday.

The week ahead includes additional corporate earnings reports and housing data later in the period. Markets continue to evaluate inflation trends alongside labor market resilience and manufacturing expansion signals from earlier releases.

Overseas markets traded during the U.S. holiday.

European bourses posted modest gains, while Asian indexes were mixed. The relative strength of non-U.S. equities remains intact, aided by the softer dollar and broader diversification flows.

The S&P 500 begins the session at 6,836, holding above the psychologically important 6,800 level but below the 7,000 threshold reached earlier this month.

The Dow stands at 49,501, and the Nasdaq at 22,547, reflecting a market consolidating after a strong January advance.

The 10-year Treasury yield sits near 4.05%, and the dollar index remains just under 97.

Key reference points remain the 6,800-6,900 range on the S&P 500 and the 4.00-4.10% zone on the 10-year yield.

With moderating inflation, declining yields, and continued sector rotation beyond the largest technology names, markets enter the new week in consolidation rather than reversal.