Global Markets Weekly Update - January 09, 2026
U.S. Market Overview
U.S. stocks rallied to start the year, with major indexes reaching all-time highs despite geopolitical tensions. Small-cap and value shares outperformed large-cap growth stocks. The Russell 2000 Index led with a 4.62% gain, while the S&P 500 rose 1.57%.
Key industry movements were noted, particularly in aerospace and defense, influenced by policy announcements from President Trump regarding military spending and restrictions on dividends and share repurchases.
Labor Market Insights
The U.S. labor market showed signs of weakness, with December job growth moderating to 50,000 jobs added, and previous months' figures revised down. The unemployment rate decreased slightly to 4.4%.
Manufacturing activity continued to contract, while the services sector showed resilience with expanding activity.
Bond Market Performance
U.S. Treasuries posted modest gains, with municipal and corporate bonds outperforming. Investment-grade corporate bonds saw positive returns amid strong demand.
European Market Insights
The pan-European STOXX Europe 600 Index rose 2.27%, driven by optimism in the economy and company earnings. Germany's industrial production exceeded expectations, indicating a potential economic revival.
Eurozone inflation slowed to 2.0%, aligning with the ECB's target, but persistent services inflation remains a concern for policymakers.
Japan's Economic Performance
Japan's stock markets gained significantly, with the Nikkei 225 Index up 3.18%. Household spending rebounded, indicating a recovery in consumer confidence despite declining purchasing power.
China's Market Developments
Mainland Chinese stock markets rose, driven by optimism in the tech sector. However, inflation data showed consumer prices rising while producer prices continued to decline, indicating ongoing deflationary pressures.
Other Key Markets
In Venezuela, the U.S. captured President Maduro, leading to potential changes in the oil market, although immediate impacts are expected to be limited. In the Czech Republic, lower inflation readings may open the door for potential interest rate cuts later this year.
Market Performance Summary
| Index | Friday's Close | Week's Change | % Change YTD |
|---|---|---|---|
| DJIA | 49,504.07 | 1,121.68 | 3.00% |
| S&P 500 | 6,966.28 | 107.81 | 1.76% |
| Nasdaq Composite | 23,671.35 | 435.72 | 1.85% |
| S&P MidCap 400 | 3,459.81 | 110.42 | 4.68% |
| Russell 2000 | 2,624.22 | 116.00 | 5.73% |
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