Friends

Given Friday’s exuberance, it would not have been a surprise to see stocks take a breather today, but for the most part the bulls were able to add to last Friday's gains. Beleaguered software stocks finally saw a bounce while other AI associated companies saw their shares move smartly higher.

By the close, the Dow Jones Industrial Average was up 20 points to finish the day at 50,135. The S&P 500 was up 32 points to close at 6,964. The Nasdaq Composite Index was up 207 points to close at 23,238. Gold was up $122 to trade at $5,102 per ounce, while oil was up $.70 to trade at $64.25 per barrel WTI.

We suspected that volatility might pick up some in the first quarter of 2026 and that has happened in all asset classes-stocks, bonds, metals, and crypto. My guess is that this increased volatility will continue into the foreseeable future. Will the beaten-up growth stocks come back to life and move the market averages higher, or will we see financials, industrials, transports, and materials continue to take the lead? The market averages have been able weather the storm in the magnificent seven so far. That actually is a very pleasant surprise. Let’s see how this week unfolds. Stay tuned.

Have a nice evening everyone.