Market Summary - January 02, 2026
Early Look
U.S. futures are showing positive movement as trading begins in 2026, aiming to end a four-day losing streak. The anticipated "Santa Claus" rally is gaining momentum as market positioning resets, tax selling concludes, and fresh capital is deployed. Institutional investors are increasing their exposure, setting new trends.
Market sentiment is bolstered by trade-related news from the White House, which has decided to drop plans for a 92% antidumping tariff on Italian pasta. Additionally, President Trump has postponed higher tariffs on upholstered furniture and kitchen cabinets, citing productive trade negotiations.
In European markets, the German DAX has risen by 52 points to 24,543, while the FTSE 100 has increased by 51 points to 9,982, briefly surpassing the 10,000 mark for the first time. The FTSE 100 experienced a nearly 22% gain in 2025, marking its best performance since 2009.
Precious metals are also performing well, with gold and silver continuing their strong performance from the previous year. Wall Street is starting the New Year after achieving three consecutive years of double-digit percentage gains, with the S&P 500 rising over 16% and the Nasdaq Composite increasing by over 20% in 2025.
Market Closing Prices Yesterday
- S&P 500 Index: -50.74 points (-0.74%) to 6,845.50
- Dow Jones Industrial Average: -303.77 points (-0.63%) to 48,063.29
- Nasdaq Composite: -177.09 points (-0.76%) to 23,241.99
- Russell 2000 Index: -18.68 points (-0.75%) to 2,481.91
Economic Calendar for Today
9:45 AM ET: S&P Global Manufacturing PMI, Dec-Final
Earnings Calendar
No earnings reports are scheduled for today.
Other Key Events
- Bank America 2026 Software New Year Bus Tour, January 5-7, in San Francisco, CA
- Goldman Sachs Energy, CleanTech & Utilities Conference 2026, January 5-7, in Miami, FL
Macro Overview
- Nymex: -0.25 to 57.17
- Brent: -0.17 to 60.68
- Gold: +65.60 to 4,406.70
- EUR/USD: -0.0028 to 1.1718
- JPY/USD: +0.23 to 156.89
- 10-Year Note: +0.004 to 4.157%
World News
The American Association of Individual Investors (AAII) reported a bull-bear spread of +15%, with bullish sentiment rising to 42.0%. Italy's foreign ministry announced a reduction in proposed tariffs on Italian pasta brands, indicating a positive shift in trade relations.
Historical performance of the S&P 500 on the first trading day of the year over the last decade shows mixed results, with the index experiencing slight declines in recent years.
Sector News Breakdown
Consumer Sector
Macau's gaming revenue rose 14.8% year-over-year in December, but fell short of expectations. Notable companies in this sector include Las Vegas Sands, Wynn Resorts, and MGM Resorts.
In the furniture sector, the postponement of tariffs on furniture products is expected to impact companies like La-Z-Boy and RH positively.
BYD Corp. reported a slowdown in sales growth, while Li Auto and Nio announced significant delivery increases for December 2025.
Energy, Industrials, and Materials
Aluminum prices have surged above $3,000 per ton due to tightening supply. NextEra Energy announced plans to sell up to $4 billion in common stock.
Healthcare
Outlook Therapeutics faced a setback as the FDA declined to approve its biologics license application for a key drug.
Technology, Media & Telecom
Baidu's shares surged after announcing plans to list its AI chip unit on the Hong Kong stock exchange. Samsung Electronics reported progress in its next-generation memory chips.