Market Review: January 06, 2026
Closing Recap
U.S. stock markets exhibited tremendous strength to kick off the New Year, with broad-based gains helping propel major averages to new all-time highs. Wall Street jumped higher, led by healthcare, materials, and technology stocks, extending the previous session’s rally as markets position for the week’s key jobs report to gauge the Federal Reserve’s policy outlook.
Index Performance
| Index | Up/Down | % Change | Last |
|---|---|---|---|
| DJ Industrials | 484.90 | 0.99% | 49,462 |
| S&P 500 | 42.76 | 0.62% | 6,944 |
| Nasdaq | 151.35 | 0.65% | 23,547 |
| Russell 2000 | 34.97 | 1.37% | 2,582 |
Market Highlights
The Dow Jones Industrial Average hit a new record closing high for the second straight day, while the S&P 500 closed above its prior closing high. The Russell 2000 is not quite at its all-time closing high, and the Nasdaq is still about 400 points off its record high. The Dow Transports also reached new record highs, led by gains in UBER and UPS.
Investors brushed aside fears of broader geopolitical fallout after U.S. forces captured Venezuelan President Nicolas Maduro, betting that this could pave the way for U.S. firms to gain access to Venezuela’s oil reserves. Oil firms eased after robust gains in the prior session, while Nvidia and other technology giants lifted sentiment with key announcements at the CES 2026 event in Las Vegas.
Macro News
The U.S. Supreme Court is set to release opinions on President Trump’s global tariffs, with a potentially volatile end to the week expected due to the upcoming nonfarm payrolls report. Economic data points expected include the December ADP private payrolls and JOLTs Job Openings for November.
Sector Performance
Four S&P 500 sector ETFs hit 52-week highs, including Industrials, Financials, Materials, and Energy. The financials-driven rally propelled the blue-chip Dow to a record high, with the Dow now about 1.9% away from the historic 50,000 mark. The Philadelphia Semiconductor index hit a new record high, aided by strong performances from memory stocks.
Commodities, Currencies & Treasuries
| Commodity | Change | Last Price |
|---|---|---|
| WTI Crude | -1.19 | 57.13 |
| Brent | -1.06 | 60.70 |
| Gold | +44.60 | 4,496.10 |
| 10-Year Note | +0.018 | 4.18% |
Sector News Breakdown
In the retail and consumer staples sector, several upgrades and downgrades were noted, with a positive outlook for the restaurant sector. In the energy sector, VST announced a significant acquisition to meet growing power demand. The financial sector saw large-cap banks holding at all-time highs, while consumer finance stocks faced mixed ratings.
Technology and Innovation
At CES 2026, several companies unveiled new technologies, including AMD's new chip for corporate data centers and advancements in autonomous driving technology from Nvidia. The semiconductor sector continues to thrive, with memory and storage stocks seeing significant gains due to increased demand from AI infrastructure.
Conclusion
The market's strong start to 2026 reflects investor optimism, driven by technological advancements and favorable economic indicators. However, upcoming economic data and geopolitical developments will be crucial in shaping market sentiment in the coming weeks.