has the stock market recovered from last week

has the stock market recovered from last week?

Short description: The question “has the stock market recovered from last week” asks whether major U.S. equity indexes (S&P 500, Dow Jones Industrial Average, Nasdaq Composite, Russell 2000) have retraced losses sustained during the prior week. Recovery can be measured by index levels and percent retracement, sector and breadth measures, volatility normalization, and cross‑asset confirmation (Treasury yields, U.S. dollar, cryptocurrencies). This article uses these metrics and cited reports to assess the degree and durability of any recovery.

Note for readers: This assessment is time‑sensitive. Where possible the article cites source dates (e.g., Jan 21–22, 2026) so you can compare with the latest closes and intraday ranges.

1. Overview

Has the stock market recovered from last week? Short answer: partial recovery in headline indexes, but mixed confirmation beneath the surface. As of the latest market sessions reported in the cited coverage, major indexes retraced a material portion of the prior week’s declines (in some cases more than half), yet breadth, volatility and some cross‑asset signals show the rebound is not uniformly broad or fully confirmed.

This is a rapidly changing question. A proper answer requires: index closing levels and intraday ranges, percent retracement from the prior week’s intraday lows, sector‑by‑sector performance, market‑breadth indicators (advancing/declining issues, new highs/lows), VIX/implied volatility trends, and cross‑asset moves in Treasury yields, the U.S. dollar, and crypto. The phrase "has the stock market recovered from last week" will be used throughout this article to tie these measures to the core question.

2. How analysts define "recovered"

Different market participants use different operational definitions when asked "has the stock market recovered from last week". Understanding these definitions helps interpret whether a move is meaningful or merely a technical bounce.

Full vs partial recovery

• Full recovery: Index price returns to the pre‑selloff level (close or intraday high before the drop). If the S&P 500 closes at or above the level it was at before the prior‑week decline, many will call the market fully recovered.
• Partial recovery (common): Measured as a percentage retracement of the drop. Traders often use 38.2%, 50% and 61.8% Fibonacci retracements as reference points, while simpler frameworks note a 50% retracement as a meaningful “halfway back” threshold. A recovery of less than ~50% is usually considered fragile; above ~50% begins to look technically more convincing.

When answering “has the stock market recovered from last week,” it’s important to specify whether you mean full or partial recovery.

Technical vs fundamental recovery

• Technical recovery: Price action alone — index levels, moving averages, reduced volatility, and increased breadth. A technical bounce can occur quickly after news changes or short covering.
• Fundamental recovery: Requires supportive macro data (inflation, jobs), clearer central bank messaging, and improving corporate fundamentals such as earnings revisions. A recovery driven by fundamentals is more durable.

To say whether the market recovered, analysts weigh both: has price bounced (technical) and are fundamentals or flows supporting the move?

3. Market performance: headline indices

This section summarizes index‑level evidence relevant to asking "has the stock market recovered from last week". Reports in the cited coverage show headline indexes regained substantial ground in follow‑up sessions after the selloff.

S&P 500

• Measure: week‑over‑week change in closing levels and percent retracement from the intraday low during the selloff.
• Reported behavior: As of Jan 21–22, 2026 reporting, the S&P 500 recovered a large portion of the losses sustained earlier in the week, with intraday rallies bringing the index back toward recent highs. For example, multiple outlets reported that the S&P regained around half or more of the prior day’s plunge during rebound sessions (see The Business Journal, Jan 21, 2026). That pattern implies a partial but notable recovery.

Dow Jones Industrial Average

• Measure: absolute point moves and percent change; note that single‑stock moves can sway the Dow disproportionately because it is price‑weighted.
• Reported behavior: CNBC (Jan 22, 2026) noted the Dow climbed roughly 300 points in a rebound tied to easing tariff headlines and positive corporate earnings beats — evidence of a headline‑driven technical recovery in the Dow.

Nasdaq Composite

• Measure: tech/mega‑cap concentration makes Nasdaq especially sensitive to the performance of a few large cap names.
• Reported behavior: When tech leaders rebound (e.g., strong semiconductor earnings), the Nasdaq can show a strong recovery even as small caps lag. Reports around Nov 21, 2025 and Jan 21–22, 2026 indicate technology and semiconductors led some of the bounce that helped the Nasdaq regain substantial ground.

Russell 2000 / small caps

• Measure: small‑cap behavior tests the breadth of any rebound.
• Reported behavior: Several recaps (weekly wrap pages from Edward Jones and T. Rowe Price) show Russell 2000 lagging during the rebound sessions, suggesting the recovery was more concentrated in large caps.

Collectively, the index data cited across news coverage supports the conclusion that headline indexes staged a partial recovery, with the degree varying by index and driven in part by sector leaders.

4. Sector and stock‑level breadth

Asking "has the stock market recovered from last week" requires checking whether gains were broad or concentrated.

Sector performance

• Tech and semiconductors: Frequently led the rebound in the sessions after the drop, as semiconductor earnings and revisions (e.g., Taiwan Semiconductor and chipmakers) lifted related stocks. MarketWatch and Barron’s noted sector rotation into tech in late‑week rallies.
• Financials: Recovered partially, aided by solid bank earnings from major firms that beat expectations in bank earnings cadence reported in weeklies.
• Energy and materials: Mixed performance — oil price moves and commodity dynamics determine these sectors’ contribution to breadth.

Market breadth indicators

• Advancing/declining issues and new highs/new lows are key confirmatory metrics. Coverage in weekly recaps indicated that while advancing issues outnumbered decliners on several rebound days, the number of new 52‑week highs remained limited — a sign that the rally was not yet broadly renewing highs across many names.
• A recovery driven by a narrow set of megacaps — even if headline indexes close higher — points to a fragile or narrow recovery, not a broad market recovery.

Summary: Sector gains, especially in tech and financials, helped headline indexes recover materially, but breadth measures showed a more muted improvement.

5. Key drivers of last week’s selloff and the subsequent rebound

To answer “has the stock market recovered from last week,” you must link the decline’s catalysts with the triggers that reversed it.

Geopolitical headlines

• Tariff threats and trade headlines have been cited as drivers of the prior selloff, including a spike in volatility tied to reports of new tariff proposals. For example, CNBC reported the Dow rebound followed de‑escalation on some tariff headlines (Jan 22, 2026). Similarly, an excerpted account of trade‑related threats and the “Sell America” reaction was linked to prior declines in markets.

Monetary policy and Fed signals

• Shifts in Fed commentary and market expectations for rate changes affect risk appetite. During the reported week, Fed officials’ remarks and upcoming policy meetings contributed to intraday swings. The Fed’s standing policy expectations (e.g., pauses in rate cuts) remain an important backdrop.

Corporate earnings and company news

• Positive earnings beats from key firms (semiconductor companies, major banks, and other bellwethers) were specifically cited as catalysts for rebound sessions. MarketWatch and NBC noted that strong results from large firms helped push indexes higher on rebound days.

Macro data and economic reports

• Jobs, inflation, and GDP data are essential fundamentals. The longer excerpted coverage noted mixed macro signals — slower job growth in 2025 compared with prior years, but still‑solid GDP gains — a mixed backdrop that can prompt volatile market reactions when combined with headlines.

Net effect: The selloff was driven by headline risk and positioning; strong corporate prints and softer headline risk helped push markets higher in the immediate aftermath, producing a partial technical recovery.

6. Cross‑asset confirmation

When judging "has the stock market recovered from last week," cross‑asset moves help determine if the equity bounce is consistent with a broader de‑risking or re‑risking of global investors.

Treasury yields and the curve

• If yields fall while equities rally, the move often represents risk‑on with easier financial conditions; if yields rise with equities, the move may reflect stronger growth expectations or reduced fear.
• Reported moves: During the rebound sessions, 10‑year Treasury yields rose modestly in some reports (e.g., a move to ~4.19% referenced in the provided excerpt), suggesting the rally had components of growth optimism rather than purely risk‑on driven by falling yields.

U.S. dollar moves

• Dollar weakness often accompanies risk‑on. Coverage across weekly updates showed mixed dollar behavior; in many of the rebound sessions the dollar did not tumble dramatically, indicating the equity gains were not accompanied by a broad shift in FX sentiment.

Cryptocurrencies

• Crypto can act as a risk‑sentiment barometer. According to the provided excerpt, Bitcoin was relatively little changed during a rebound session (notably near $95,400 in that snapshot). For readers using crypto as a confirmation signal, Bitget Wallet and Bitget market tools can help track whether crypto is re‑participating in the rally.

Overall: Cross‑asset confirmation was mixed — bond yields and crypto did not uniformly point to a decisive, durable de‑risking reversal that would confirm a full recovery.

7. Volatility and technical indicators

Volatility and technical evidence provide help answering "has the stock market recovered from last week." Recovery with low volatility and sustained above‑average volumes is stronger than a high‑volatility snapback.

VIX and implied volatility

• A decline in the VIX (CBOE Volatility Index) following the selloff supports the view that fear is receding. In the sessions described by market recaps, implied volatility fell from the spike during the drop but remained elevated versus long‑term averages — consistent with a partial normalization.

Moving averages and trendlines

• Key technical tests include whether the S&P 500 and Nasdaq reclaimed their 50‑day moving averages and whether the 200‑day remains intact. Reports indicated headline indexes were trading near recent highs (S&P and Dow had closed at all‑time highs as recently as Jan 12, 2026, per the provided reporting), implying that the recent pullback did not immediately break long‑term trendlines.

Volume and momentum indicators

• Volume confirmation: Many rebounds were accompanied by higher volume in leading stocks, suggesting genuine buying interest, but broad market volumes varied. Momentum indicators (RSI, MACD) showed partial retracement patterns typical after sharp declines.

Technical summary: The technical picture supported a partial recovery but not yet a unanimous technical validation across all indicators.

8. Timeline: day‑by‑day summary of last week and immediate aftermath

A concise chronological account helps answer the query "has the stock market recovered from last week." Below is a general timeline synthesized from the cited recaps.

Day −7 to Day −1: build‑up to the selloff

• Markets had been near records in early January (S&P and Dow had recent all‑time highs as of Jan 12, 2026). Positive sentiment and strong GDP prints earlier in the quarter supported elevated valuations.
• Positioning grew long in equities, and some macro headlines (tariff threats, geopolitical headlines) created vulnerability to a shock.

Drop day(s)

• A spike in headline risk (tariff threats and trade rhetoric in the provided reporting) combined with rapid position unwinds led to a sharp selloff that saw major indexes give up multiple percentage points intraday.
• The selloff extended to bonds and global markets in certain sessions, described as a “Sell America” trade in the excerpt.

Bounce / recovery days

• In subsequent sessions, easing of headline risk, better‑than‑expected earnings from semiconductors and banks, and technical short covering produced rebound days. The Business Journal and CNBC reported that U.S. stocks recovered portions of the prior day’s plunge on Jan 21–22, 2026.
• Over the following trading days, headline indexes retraced a material share of losses; however, small‑cap indexes and breadth indicators lagged, indicating a partial, uneven recovery.

This timeline supports the conclusion that by the immediate aftermath, headline indexes had recovered partially, though underlying confirmation remained mixed.

9. Market sentiment, positioning and flows

To judge whether the market truly recovered from last week, flows and positioning data are key.

Fund / ETF flows

• Several weekly wrap reports highlighted that equity inflows returned on rebound days, but the flows were concentrated into large‑cap and sector ETFs (tech and semiconductors) rather than broad small‑cap funds — consistent with a narrow rally.

Options and hedging activity

• Put/call ratios and protective put buying typically spiked during the selloff and eased during the bounce. Options‑market data reported in weekly recaps showed elevated hedging earlier in the week and some unwind during the rebound, but residual demand for protection remained above pre‑selloff levels.

Retail investor indicators

• Social sentiment and retail order flow suggested cautious re‑entry into equities, with retail attention focused on megacap names that were leading the rebound.

Implication: Flows and positioning rebounded but were not yet clearly indicative of a broad, durable rotation back into risk across the market cap spectrum.

10. Short‑term outlook and risks

When asked "has the stock market recovered from last week," it is helpful to describe probable near‑term scenarios and the main upside/downside risks shaping those outcomes.

Bullish catalysts

• Easing headline risk (tariff de‑escalation or clarity) can remove a primary market overhang.
• Continued positive earnings surprises from mega‑cap tech and semiconductor firms — a repeat of the earnings‑led bounce — could propel indexes higher.
• Lower inflation prints or a clearer dovish tilt from the Fed could support a broader market advance.

Bearish catalysts

• Renewed tariff or trade escalation tied to headline politics could quickly reverse sentiment and resume selling pressure.
• Hawkish or uncertain Fed messaging that pushes up yields unexpectedly could tighten financial conditions.
• Weak macro data (e.g., a surprising slowdown in jobs or consumer spending) could re‑ignite risk‑off flows.

Given these catalysts, the most likely near‑term outcomes are either a consolidation near recovered levels (if headlines and earnings remain stable) or renewed volatility if headlines or data shift unexpectedly.

11. How to answer the question for individual investors

This section translates the question "has the stock market recovered from last week" into practical guidance for different types of investors. This is informational and not investment advice.

Short‑term traders

• Look for intraday technical confirmation before declaring a recovery: sustained closes above key moving averages (e.g., 50‑DMA), falling VIX, and breadth improving (advancers > decliners) on above‑average volume.
• Use clear rules for trade management and avoid extrapolating a single bounce into a multi‑week trend without confirmation.

Long‑term investors

• Weekly or daily rebounds should be assessed relative to fundamentals such as earnings growth and macro trends. For many long‑term investors, transient weekly moves do not change long‑term asset allocations. Focus on diversification and rebalancing rules rather than short‑term noise.

Practical reminder: If you track crypto sentiment as part of risk appetite, Bitget Wallet and Bitget market tools provide convenient access to crypto price action and on‑chain indicators to supplement equity market views.

12. Data sources and references

As of the dates indicated below, the following reports and weekly wrap pages were used to inform this assessment of whether the stock market recovered from last week:

• As of Jan 21, 2026, The Business Journal reported: "US stocks recover half of the prior day's plunge..." (reported Jan 21, 2026).
• As of Jan 22, 2026, CNBC reported: "Dow climbs 300 points, rebounds from Greenland tariff ..." (reported Jan 22, 2026).
• As of Nov 28, 2025, The New York Times reported: "Late Rally Pushes Stocks Back Near Record High" (reported Nov 28, 2025).
• As of Nov 21, 2025, NBC News reported: "U.S. stocks bounce back, capping a wild week for markets" (reported Nov 21, 2025).
• As of Nov 24, 2025, AP News provided an index update: "How major US stock indexes fared Monday, 11/24/2025." (reported Nov 24, 2025).
• As of Nov 21, 2025, Barron’s reported: "The Stock Market Rally Is Back On" (reported Nov 21, 2025).
• As of Nov 21, 2025, MarketWatch summarized daily moves: "Stock Market on Nov. 21, 2025: Dow, S&P 500, Nasdaq end higher..." (reported Nov 21, 2025).
• As of Jan 16, 2026, Edward Jones published a "Weekly market wrap" with context on flows and sector rotation.
• As of Jan 16, 2026, T. Rowe Price released a "Global markets weekly update" summarizing macro drivers.
• Manulife John Hancock Investments provided a "Weekly Market Recap" used for breadth and flow context (date as published on their weekly page).
• As of Jan 21–22, 2026, an aggregated news excerpt (provided to this article) recounted market events around the U.S. political and economic backdrop, including references to job growth, GDP prints, and market reactions; the excerpt cited market highs (S&P and Dow closing at all‑time highs as recently as Jan 12) and subsequent routs tied to trade/tariff headlines (dates referenced in the excerpt range across Jan 2026 reporting). Where the excerpt referenced market levels (e.g., Bitcoin ~ $95,400, 10‑yr yield ~4.19%), those figures reflect the session‑level snapshots cited in the provided material.

All date references above are included to provide temporal context for the assessment. For a live, precise determination of recovery, compare the latest market close and intraday ranges with the pre‑selloff levels described in these sources.

13. Appendix: Metrics and charts to include

For a full, data‑driven answer to "has the stock market recovered from last week," include the following charts and tables in a published version of this article:

• Index price charts (S&P 500, Dow, Nasdaq, Russell 2000) with a 2‑week to 1‑month window showing pre‑selloff high, intraday lows, and subsequent closes.
• Percent retracement table: For each index, list intraday low, pre‑selloff high, current close, and percent retracement recovered.
• Sector heatmap for the week: sector returns and sector weight contributions to S&P 500 change.
• VIX and 10‑year Treasury yield chart overlayed with S&P 500 to show correlation during the selloff and rebound.
• Breadth indicators: advancing/declining issues, new highs/new lows, and percentage of S&P 500 stocks above their 50‑day moving average.
• Volume and options activity: daily total exchange volume plus put/call ratio trends during the week.
• Timeline of headlines: a time‑stamped list of key news items (tariff headlines, earnings beats/misses, Fed speeches) mapped to market moves.

These visuals help readers directly evaluate whether the stock market recovered from last week by inspecting raw evidence rather than opinion.

14. Revision history and update guidance

• Update frequency: This assessment should be updated after each market close when the question is asked anew. Use official exchange closing prices and end‑of‑day breadth data.
• Recommended data feeds / time stamps: Use the official NYSE/NASDAQ/Euronext close times, final consolidated tape close prices, and end‑of‑day VIX and Treasury yield values. Timestamp each update as: "As of [YYYY‑MM‑DD market close], based on [source]."
• Revision log: record date, author/editor, sources updated, and whether the conclusion (no recovery / partial recovery / full recovery) changed.

Practical next steps: If you want to track whether the market continues to recover in real time, monitor the percent retracement table, breadth indicators and VIX; for crypto sentiment, use Bitget Wallet and Bitget market tools to watch whether on‑chain flows and major crypto prices join or diverge from equity moves.

Further reading and tools: Explore Bitget educational resources and Bitget Wallet for continuous tracking of cross‑asset signals. To keep the assessment timely, check the cited weekly recaps after each trading week and record the close‑to‑close changes.

Article prepared using the cited market coverage and weekly recaps. This article is informational and does not provide investment advice.