U.S. stocks end mixed as earnings split investors; VIX rises and banks weigh on Dow

U.S. stocks closed a mixed session as investors parsed a fresh wave of fourth-quarter earnings and assessed whether profits are strong enough to justify elevated valuations. A Zacks Market Edge recap carried by Nasdaq said the Dow Jones Industrial Average fell 0.6% to 49,098.71, while the Nasdaq Composite added 0.3% to 23,501.24. The S&P 500 ended nearly flat, up 0.03% to 6,915.61, with seven of 11 sectors finishing higher even as financials lagged.

The report noted that volatility ticked up: the CBOE Volatility Index (VIX) increased 2.9% to 16.09. Trading activity remained heavy, with 17.34 billion shares exchanged, above the 20-session average. Despite the day’s split finish, the major indexes posted weekly declines, reflecting a market still trying to find footing after a run of strong performance.

Earnings reactions underscored the market’s sensitivity to even small misses. Capital One Financial reported adjusted Q4 2025 earnings of $3.86 per share versus a consensus estimate of $4.12, though revenue of $15.58 billion exceeded expectations. Shares fell sharply after the release, illustrating how investors are punishing results that do not clear a high bar.

By contrast, Alaska Air Group posted adjusted earnings of $0.43 per share, beating expectations, while revenue of $3.63 billion was slightly below forecasts. Bank First Corporation also beat expectations on both earnings and revenue. The report said these moves contributed to a session in which some pockets of the market found support even as other areas retrenched.

Macro signals offered a modest offset to earnings uncertainty. The same recap cited a January rise in the University of Michigan consumer sentiment index to 56.4 from 52.9 in December, suggesting households felt somewhat less pessimistic. For investors, the next test is whether incoming earnings and economic data can stabilize confidence, or whether volatility rises further as markets recalibrate expectations.