Market Update

Highlights include:

• Stock performance continued to be strong in January.
• Top-performing S&P 500 sectors in January included Communication Services, Health Care and Financials.
• Information Technology fell nearly 3% on news that Chinese artificial-intelligence (AI) upstart, DeepSeek, said its AI model was more sophisticated and less expensive than other advanced models.
• Economic activity continues to be solid and fourth-quarter corporate earnings were strong.
• Many factors favor a continued bull market in 2025 including a resilient U.S. economy, potentially lower interest rates, a strong consumer, and potential changes under a new presidential administration.