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Weekly NewsletterJanuary 21, 2026

This Week on Wall Street – Week of January 20th

Tariff pressures remain a hot topic following new announcements that a 10% import tax could be placed on up to eight European countries opposing US control of Greenland.

This Week on Wall Street – Week of January 20th

MARKET COMMENTARY

Tariff pressures remain a hot topic following new announcements that a 10% import tax could be placed on up to eight European countries opposing US control of Greenland. Fortunately, negotiations are still up in the air, and the chances of a trade war ensuing are less likely than they were a year ago. The World Economic Forum is taking place this week in Davos, where many world leaders, including Trump, will be gathered. As of now, Trump plans to discuss his approach towards navigating ongoing housing affordability issues in America, but we also expect to hear further insight into potential remedies regarding Greenland.

Looking at the week ahead, the Fed’s favored measure of inflation will be released on Thursday, though it remains backlogged as it reports Personal Consumption Expenditures for November. Still, it will serve as a data point for the Fed’s meeting next week, where the central bank is expected to hold interest rates steady. Analysts expect to see somewhat of a cooldown in PCE inflation, though there is still a ways to go to reach the 2% target. Major players, including Netflix, United Airlines, P&G, and more, are set to release earnings this week as well.

Markets have been on a more positive note, but are feeling volatility related to the many geopolitical events currently unfolding. That said, gold and silver continue to see upside in this climate. We’re beginning to see a rotation out of large-cap stocks, with small and mid-cap stocks showing greater participation and outperforming large-cap in both growth and value since the start of the year. Earnings growth has been a key driver of this shift, as the earnings gap between these sectors is narrowing, signaling greater breadth in the market. Additionally, lower interest rates and the big beautiful bill are further supporting positive momentum.


Economic Releases This Week

Monday: Happy MLK Day

Tuesday: None

Wednesday: None

Thursday: PCE Index, Initial Jobless Claims 

Friday: Consumer Sentiment

Stories to Start the Week

Trump’s tariff threats to takeover Greenland may cause the EU to deploy a tool known as the “big bazooka”

They quit their day jobs to bet on current events. A look inside the prediction market mania

Lisa Cook case before Supreme Court to be crucial test for Fed’s independence

Spending on data-center construction is expected to rise by 23% in 2026

To make homes affordable again, someone has to lose out

About This Series

Last Week on Wall Street

Last Week on Wall Street is Waterloo Capital's weekly market recap, published every Monday morning to keep advisors and clients informed on the most significant developments from the prior trading week. Each edition synthesizes equity market performance, fixed income moves, macroeconomic data releases, and notable corporate earnings into a concise, actionable read — cutting through the noise so our readers can focus on what actually matters for long-term wealth management.

Our research team tracks the S&P 500, Dow Jones Industrial Average, NASDAQ Composite, and 10-year Treasury yield as primary benchmarks, while also covering sector rotations, commodity swings, and policy shifts from the Federal Reserve and Washington. When major cross-asset moves occur — such as the historic gold selloff covered in this edition — we dig into the mechanics and the likely ripple effects on diversified portfolios, helping clients contextualize volatility without reacting impulsively.

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Waterloo Capital's investment research is grounded in fundamental analysis and long-term thinking. We believe that disciplined, evidence-based investing — anchored in each client's specific goals, risk tolerance, and time horizon — consistently outperforms reactive decision-making driven by short-term headlines. Our weekly commentary is designed to inform, not alarm: we put market moves in their proper historical context so that clients can hold conviction in their financial plans through periods of uncertainty.

As an SEC-registered investment advisor headquartered in Austin, Texas, with offices across the Southwest and Southeast, Waterloo Capital serves high-net-worth individuals, families, and institutions. Our advisors use proprietary research like this weekly recap as one input among many — alongside in-depth portfolio reviews, tax planning, and estate strategy — to deliver comprehensive wealth management tailored to each client relationship. To learn more about how our investment philosophy and ongoing market research can serve your financial future, contact our team directly.

Investment Disclosure: The information contained in this article is provided for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any security. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. Waterloo Capital, LP is an SEC-registered investment advisor. Registration does not imply a certain level of skill or training. Please consult with a qualified financial professional before making any investment decisions.

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