Market Summary - January 05, 2026
Index Performance
| Index | Change (Up/Down) | Percentage Change (%) | Last Value |
|---|---|---|---|
| DJ Industrials | +622.01 | 1.28% | 49,000 |
| S&P 500 | +47.10 | 0.69% | 6,905 |
| Nasdaq | +201.19 | 0.87% | 23,437 |
| Russell 2000 | +23.27 | 0.94% | 2,532 |
Market Overview
US stocks opened the week with strong gains after a holiday-shortened trading week. The Financials, Energy, and Technology sectors saw significant increases, particularly following the U.S. operation in Venezuela that resulted in the removal of President Nicolás Maduro. This geopolitical event led to expectations of U.S. control over Venezuela's oil resources, boosting energy stocks despite stable oil prices. Precious metals, however, experienced a surge due to heightened geopolitical concerns.
Economic Data
The ISM Manufacturing PMI for December unexpectedly dipped to 47.9, below the consensus of 48.4, indicating a contraction in manufacturing activity. The prices paid index rose to 58.5, while new orders and employment indices showed slight improvements.
Sector Highlights
Energy Sector
Energy stocks surged as the U.S. plans to invest in Venezuela's oil infrastructure. Major companies like Chevron (CVX) saw stock increases, alongside refiners and oilfield service companies.
Security Software
In the security software sector, Okta (OKTA) announced a $1 billion share repurchase program, while Palo Alto Networks (PANW) received an upgrade. Conversely, Rapid7 (RPD) was downgraded due to slower growth in the vulnerability management market.
Retail Sector
Mizuho upgraded Costco (COST) to Outperform, citing strong consumer spending despite signs of strained sentiment. The firm expects volatility in retail stocks as the year progresses.
Semiconductors
Semiconductor stocks are in focus ahead of the Consumer Electronics Show (CES). ASML was upgraded, and memory chipmakers are expected to expand capacity significantly in 2026.
Stock Movements
Gainers
- ALT +20% - FDA granted breakthrough therapy designation for its liver disease drug.
- CVX +3% - Boosted by news from Venezuela.
- GHRS +27% - FDA lifted clinical hold on its investigational drug.
Laggards
- BABA -2% - US-listed Chinese stocks declined.
- CPB -2% - Defensive food stocks weakened.
- LITE -9% - Optical stocks faced broad weakness.
Conclusion
The market is reacting positively to geopolitical developments and upcoming economic data, with a focus on job reports later in the week. The Consumer Electronics Show is also expected to influence technology stocks significantly.