A Calm Finish to a Not-So-Calm Week
At first glance, last week looked uneventful. The S&P 500 finished close to where it started, which might suggest smooth sailing in U.S. equity markets. But appearances were deceiving. Beneath the surface, it was a busy week with several developments that moved markets along the way.
The Federal Reserve held interest rates steady, a decision that came as no surprise and generated little market reaction. Fed Chair Jerome Powell reiterated that the economy remains on solid footing, while also signaling that rate cuts could still be on the table later this year if conditions allow, according to reporting from the Associated Press.
Corporate earnings also played a major role. With earnings season underway, roughly one-third of S&P 500 companies have reported fourth-quarter results. So far, the numbers point to improving profitability. In fact, S&P 500 companies are collectively posting double-digit, year-over-year earnings growth for the fifth consecutive quarter, according to FactSet.
Still, not all sectors were met with enthusiasm. Software stocks came under pressure as investors reacted to cautious outlooks from several companies. Concerns are growing that advances in artificial intelligence could eventually reduce demand for traditional software offerings. As Bloomberg noted, many firms in the sector have been revising forward revenue and earnings expectations lower — a trend that weighed on markets late in the week.
Another notable headline came from Washington. President Trump nominated Kevin Warsh to lead the Federal Reserve. The market’s response was muted but generally positive, reflecting investor hopes that the Fed’s independence will be preserved. Warsh previously served as a Fed governor, and analysts expect him to support near-term rate easing while remaining willing to address inflation if it resurfaces, according to Barron’s.
By week’s end, major U.S. stock indexes were little changed overall, while Treasury yields finished mixed — a fitting conclusion to a week that was far more active than the final numbers suggest.
| Data as of 1/30/26 | 1-Week | Y-T-D | 1-Year | 3-Year | 5-Year | 10-Year |
| Standard & Poor’s 500 Index | 0.3% | 1.4% | 14.3% | 20.0% | 13.0% | 13.6% |
| Dow Jones Global ex-U.S. Index | 1.2 | 5.9 | 30.9 | 12.4 | 6.0 | 7.1 |
| 10-year Treasury Note (yield only) | 4.2 | N/A | 4.5 | 3.6 | 1.1 | 2.0 |
| Gold (per ounce) | -5.4 | 9.3 | 66.8 | 34.8 | 20.6 | 15.5 |
| Bloomberg Commodity Index | 0.9 | 10.0 | 17.5 | 2.9 | 8.1 | 4.7 |
S&P 500, Dow Jones Global ex-US, Gold, and Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods. Sources: Yahoo! Finance; MarketWatch; djindexes.com; U.S. Treasury; London Bullion Market Association. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested in directly. N/A means not applicable.
How Is College Financial Aid Changing — and What Does It Mean for Families?
More than half of parents surveyed in 2025 said they are saving, or plan to save, for college using tax-advantaged 529 College Savings Plans. That strategy may become even more important as recent legislation reshapes the federal student aid landscape.
The One Big Beautiful Bill Act (OBBBA) introduced sweeping changes to federal student lending and repayment programs, reducing borrowing limits and narrowing repayment options for both students and parents, according to CNBC.
Key changes to federal borrowing limits
Beginning July 1, 2026, new caps will apply to federal student loans, including lifetime borrowing limits:
Parent PLUS loans:$20,000 per year per child; $65,000 lifetime per child
Graduate student loans:$20,500 annually; $100,000 lifetime
Professional student loans:$50,000 annually; $200,000 lifetime
All federal student loans (excluding Grad PLUS and Parent PLUS):$257,500 lifetime
Source: National Association of Independent Colleges and Universities (NAICU)
In addition,Grad PLUS loans will be eliminated for new borrowersstarting July 1, 2026. These loans previously allowed graduate students to borrow up to the full cost of attendance.
What current borrowers need to know
Students and parents who borrowed through federal Direct Loan programs before July 1, 2026, will generally be able to continue borrowing under existing limits for up to three academic years or until they complete their program, whichever comes first, according to NASFAA.
Repayment options are being streamlined
For loans issued after July 1, 2026, borrowers will have just two repayment choices:
A new standard repayment plan
A new income-based option called theRepayment Assistance Plan (RAP)
Under RAP, borrowers pay between 1% and 10% of income, with a $10 minimum payment and a 30-year repayment period.
Current borrowers enrolled in Income-Contingent Repayment (ICR), Pay As You Earn (PAYE), or SAVE plans may remain in those programs until July 1, 2028. After that date, they must transition to another plan — or they will be automatically moved into RAP.
The existing Income-Based Repayment (IBR) plan has also been modified. Borrowers no longer need to demonstrate financial hardship, and remaining balances may be forgiven after 25 years for current borrowers or 20 years for new borrowers.
Parents with PLUS loans who want access to income-based repayment should note thatconsolidation loans must begin repayment before July 1, 2026, to remain eligible for IBR, according to the National Consumer Law Center.
Expanded flexibility for 529 plans
OBBBA also increased the annual withdrawal limit for qualified K–12 education expenses from $10,000 to $20,000, while expanding the list of eligible education-related costs.
Weekly Focus – Think About It
“In the long run, stock returns depend almost entirely on the earnings growth of our corporations.”
— John Bogle, Founder of Vanguard