Enki Insight

Markets closed the week in a mixed and rotational pattern, with headline-sensitive technology shares softening while broader indexes held near recent highs. The overall tone was constructive but cautious: volatility stayed elevated relative to late‑January levels, and cross‑asset positioning showed continued demand for diversification and hedging.

January’s economic data show the U.S. economy still expanding but evolving as growth shifts to services and a recovering manufacturing sector. Unemployment held near 4.3 % with modest job gains, while factories returned to expansion for the first time in a year and the yield curve steepened slightly.

U.S. markets ended the week with a rotation rather than a broad break: the Dow outperformed while large-cap tech lagged, and volatility stayed elevated versus January’s calmer regime.  Policy signaling remained a primary driver—Fed officials reinforced a data-dependent posture with divergent emphasis on risks, keeping rates-sensitive assets headline-reactive.