Equity markets rallied in January starting the new year off with a substantial broadening in performance featuring particular strength in smaller cap issues. The market gains were noteworthy in the context of an unsettled macro environment including rising geopolitical concerns in the Middle East, Venezuela, and Greenland. We continue to be encouraged by the potential for earnings growth across S&P sectors to be more balanced in 2026, which could support sustained improvements in market breadth and provide a more favorable environment for investors seeking to avoid sector concentration.