Weekly Stock Market Update & SPY Technical Analysis
The Dow Jones Industrial Average topped 50,000 for the very first time last week as the market posted a massive recovery and its biggest day of 2026 (so far). Sweethearts like Nvidia, TSMC, Broadcom led the way, signaling that confidence is restored in the AI trade.
The story of the market over the past quarter has been skewed outside of tech and into other industries. Big names like Microsoft, Meta, Palantir, and more…have corrected deeply from their highs. As these names corrected from astronomical valuations (along with other high growth AI / quantum / nuclear names), capital was flowing to industrials, consumer defensive, energy, and other parts of the market that lagged far behind tech in 2025. We capitalized on this move by taking on names like Exxon ($XOM), Boeing ($BA), Devon ($DVN), Energy Transfer ($ET), and more…now we’ve adjusted our watchlist to other industries that stand out for the weeks and months ahead.
Economic update:
U.S. unemployment data was delayed last week due to a partial government shutdown, which left investors blind on Friday to how the labor market is doing. The U.S. unemployment rate will continue to be a big focus for investors this year as the job market continues to show signs of struggle. The report will now be released on Wednesday before market open.
Also on the agenda this week is the Consumer Price Index (CPI). This will provide us with the latest inflation data, which is also a key theme to watch this year. Inflation has been stick, closer to 3% than the 2% goal, but it has moved in the right direction. Year over year inflation is expected to drop from 2.7% to 2.5% per this week’s report, which could be something to celebrate for markets. We’ll update the data as we receive it and adjust our positions accordingly.
Political backdrop:
Iran and the U.S. sat down on Friday and held nuclear talks, which were supposedly productive, but still too early to tell. Tensions between the two countries have been high, weighing on the market and pushing oil prices higher. However these recent talks are a good signal that things are cooling. The U.S. still has an “armada” of ships stationed near Iran, but it seems to be a bluff.
The U.S. quietly announced last week that they’re pushing for a peace plan between Russia and Ukraine by March. This is a very early development, but it’s something to watch. We formulated some of the stocks on our watchlist specifically around this.
SPY Technical Analysis:
See the orange zone on the chart above? That’s the range SPY has been trapped in since late November. While SPY is often our go-to due to its heavy tech exposure, the real story over the past few months has been happening elsewhere, specifically in the Dow Jones ($DJX) and the Russell 2000 ($IWM).
We initiated coverage on $IWM in late November around 245, and since then it’s climbed roughly 8% as capital rotated into small caps. At the same time, the Dow Jones caught a bid, fueled by strength in industrial leaders like Caterpillar and Boeing.
As big tech cooled, SPY moved into consolidation mode, grinding just below its highs near 700, a key breakout level we’re watching closely. A decisive move above that zone would signal the next leg higher. A push from tech could fuel this move.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of capital. Always conduct your own research or consult with a licensed financial advisor before making investment decisions.
Hyper Stocks and its contributors may hold positions in some of the securities or assets mentioned above. These positions are subject to change without notice. Any opinions expressed reflect current views at the time of writing and are not guarantees of future performance. Past performance does not guarantee future results.