04:42 PM EST, 01/16/2026 (MT Newswires) -- US equity indexes closed lower this week amid divergent bank earnings, hot-and-cold inflation data, and the threat to the Federal Reserve's independence from a Department of Justice probe.

* The S&P 500 closed at 6,940.01 on Friday versus 6,966.28 a week ago. The Nasdaq Composite stood at 23,515.39 compared with 23,671.35 a week earlier. The Dow Jones Industrial Average ended at 49,359.33, versus 49,504.07 at the end of last week.

* The hotter-than-expected producer price inflation report came on the heels of a cooler-than-expected consumer price inflation this week, keeping the outlook for inflation unclear as policymakers continue to parse through delayed and incomplete data, according to a note from Stifel.

* Quarterly earnings from JPMorgan Chase ( JPM ) and Wells Fargo ( WFC ) disappointed investors, while the Goldman Sachs Group ( GS ) and Morgan Stanley's ( MS ) results went down well with market participants.

* Energy, consumer defensive, and real estate led the gainers this week. Over the past month, basic materials, energy, and industrials were the top three peer groups, signaling a transition of leadership away from high-growth sectors such as technology.

* Fed Chair Powell said late Sunday the Justice Department had subpoenaed Fed records regarding a $2.5 billion upgrade of the central bank's headquarters and his related testimony before Congress. He described the Trump Administration's actions as a "pretext" to influence the central bank's policies.

* On Friday, President Donald Trump appeared to signal that National Economic Council Director Kevin Hassett may not be the next head of the US central bank. Fed Governor Kevin Warch has "more credibility in the world of central banking," whereas "Hassett is perceived as someone who will do more of Trump's bidding," John Brady, managing director at RJ O'Brien, told Bloomberg.