Weekly Market Commentary -  Jan 12, 2026

Week In Review

A mixed U.S. employment report, news of an AI memory chip shortage and signs of broadening

earnings growth beyond the technology sector fostered positive market sentiment and drove major U.S. equity market indices to record high levels in the first full trading week of the new year. Nonfarm payrolls rose by a modest 50,000 jobs in December, below the median forecast of 73,000. Additionally, job growth was scaled back for the prior two months by 76,000, providing evidence of a slump in hiring. However, average hourly earnings grew by a robust 3.8% annual pace and the unemployment rate decreased to 4.4%, reinforcing the notion of a soft but resilient labor market that could lead to rate cuts later this year. 3

Samsung Electronics and Nvidia made news at the Consumer Electronics Show, warning of a global

memory chip shortage and industry-wide price hikes that fueled a rally for tech stocks within the broader AI ecosystem. Perhaps the most consequential factor for market momentum was the revision to 2026 S&P 500 earnings estimates, with a number of sectors projected to contribute more to profit growth than information technology. The S&P 500 index closed at a record high level of 6,966, surging +1.6%.

This Week

Economic highlights include the Consumer Price Index, the Producer Price Index, U.S. retail sales, and

updated Federal Reserve Beige Book. The earnings season begins with results for 14 S&P 500 companies, including JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup. 4

Portfolio Themes

Emerging market and international developed stocks were two of the top performing asset classes in 2025. Despite the outperformance, the ACWI ex-U.S. is still valued at a -33.92% P/E discount to the S&P 500.5 Simplicity offers model portfolios with international stock exposure that may deliver strong performance if the Fed cuts rates and the U.S. dollar depreciates.

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Data: Unless otherwise noted, data for charts, graphs, and tables is sourced from YCharts. Portfolio Themes idea sourced from Capital Group.

1Style box returns use various Russell indices tied to specific areas of the market cap (vertical) and style (horizontal) spectrums. Indices are not typically available for direct investment, are unmanaged, and do not incur fees or expenses.

2 Index Statistics: P/E Ratio – Displays the forecasted P/E ratio of the representative index ETF. Yield - Dividend-per-share divided by current share price. Table statistics are updated weekly. MSCI indices represent broad global and international equity markets. Indices are represented by iShares ETF proxies (IVW, IVV, IVE, ACWI, and ACWX).

3 Bureau of Labor Statistics. 4FactSet. 5First Trust. Past performance does not guarantee future results.

Weekly commentary and investment advisory services are provided by Simplicity Wealth, LLC a SEC Registered Investment Adviser. Registration does not imply a certain level of skill or training. The information provided is for informational purposes only and does not constitute any form of advice or recommendation. The information contained within has been obtained from various sources and is believed to be accurate at the time of publication.