Weekly Markets Wrap: Stocks Slipped as 2025 Turned to 2026

Stock Market Update for the Trading Week Ended Jan. 2

• The Morningstar US Market Index fell 0.99%.
• The best-performing sectors were energy, up 3.34%, and utilities, up 0.91%.
• The worst-performing sectors were consumer cyclical, down 2.91%, and technology, down 1.38%.
• Large-cap stocks fell 1.15%, mid-cap stocks fell 0.51%, and small-cap stocks fell 0.76%.
• Growth stocks fell 1.21%, blend stocks fell 1.01%, and value stocks fell 0.22%.
• The S&P 500 fell 1.03% and the Nasdaq fell 1.52%.
• Of the 837 US-listed companies covered by Morningstar, 337, or 40%, were up, three were unchanged, and 497, or 59%, were down.

Bonds and Commodities

• Yields on 10-year US Treasury notes rose to 4.19% from 4.14%.
• Yields on 2-year US Treasury notes rose to 3.47% from 3.46%.
• West Texas Intermediate crude prices rose 0.63% to $57.29 per barrel.
• Comex Gold prices fell 4.90% to $4,317.80.

Top Stock Gainers

Baidu BIDU, Under Armour UA, Micron Technology MU and SanDisk SNDK were the top performers among US-listed stocks covered by Morningstar analysts.

• Baidu topped the list, rising 20.43%, but it’s down 0.84% over the past three months. This wide-moat company with a 3-star rating has increased 54.98% over the past 12 months. The stock closed the week at $150.3, trading at an 11% discount to its fair value estimate of $146 per share.
• Under Armour was the second-best performer, with a weekly return of 14.45%. The 5-star stock has lost 0.62% over the last three months. Shares in this no-moat company are down 35.66% over the past 12 months. Under Armour stock wrapped up the week at $5.07, trading at a 65% discount to its fair value estimate of $13.60 per share.
• The third-best-performing stock was no-moat Micron Technology, which gained 10.71%. The 2-star stock has gained 70.71% over the last three months and is up 239.67% over the past 12 months. Micron Technology finished the week at $315.29, trading at a 27% premium to its fair value estimate of $225 per share.
• SanDisk stock climbed 10.07% in the latest week. This no-moat company has seen an increase of 111.57% over the last three months. The 1-star stock ended the week at $275.24 per share, trading at a 76% premium to its fair value estimate of $135.

Top Stock Losers

AppLovin APP, Palantir PLTR, Pegasystems PEGA, Vipshop VIPS and Guidewire Software GWRE did the worst among US-listed stocks covered by Morningstar analysts.

• AppLovin was the worst-performing stock of the week, falling 13.43%. This 2-star, narrow-moat company has fallen 6.22% over the past three months but rose 108.08% over the past 12 months. The stock ended the week at $618.32, trading at a 35% premium to its fair value estimate of $500 per share.
• Palantir took the second spot, with a 11.05% price decline this week. The narrow-moat company, rated 2 stars, has fallen 2.56% over the past three months but rose 135.03% over the past 12 months. Closing at $167.86, the stock trades at a 32% premium to its fair value estimate of $135 per share.
• Pegasystems came in third, experiencing a 10.2% drop this week. This 3-star, no-moat company has risen 3.91% over the past three months and rose 28.41% over the past 12 months. The stock finished the week at $56.06, trading near its fair value estimate of $58 per share.
• Next up is Vipshop, which saw its stock price fall by 8.99% this week. The no-moat company with a 4-star rating has fallen 9.93% over the past three months but rose 34.89% over the past 12 months. At $17.71, the stock trades at a 28% discount to its fair value estimate of $24.60 per share.
• Guidewire Software rounds out the list with a 8.82% decline this week. This 3-star, wide-moat company has fallen 12.55% over the past three months but rose 19.24% over the past 12 months. The stock closed the week at $187.63, trading near to its fair value estimate of $210 per share.

Highlights of This Week’s Market and Investing Events

• Monday, Jan. 5: ISM Manufacturing report
• Tuesday, Jan. 6: ADP Employment Survey, ISM Services PMI report, Job Openings and Labor Turnover Survey
• Thursday, Jan. 8: Initial Unemployment Insurance Claims report, earnings from Tilray Brands TLRY
• Friday, Jan. 9: Employment Situation report, New Residential Construction report, University of Michigan Index of Consumer Sentiment report.