Market Analysis Summary - January 9, 2026
Overview
The article discusses the recent performance of major U.S. stock indices, including the S&P 500, NASDAQ, and Dow Jones, in response to economic data released on January 9, 2026. The analysis highlights key movements in the indices, driven by employment data and market reactions.
S&P 500 Performance
The S&P 500 index gained ground as the unemployment rate fell to 4.4% in December, down from a revised 4.5% in November. The Non-Farm Payrolls report indicated that the economy added 50,000 jobs in December, slightly below the analyst consensus of 60,000. Despite the lower job addition, the decline in unemployment positively influenced market sentiment, pushing Treasury yields higher as traders adjusted their expectations regarding Federal Reserve policy.
The S&P 500 tested new highs, and if it maintains levels above the resistance at 6940-6950, it is expected to move towards the 7000 mark. The Relative Strength Index (RSI) indicates that there is still room for upward momentum.
NASDAQ Index Insights
The NASDAQ index also saw gains, largely driven by a significant rally in Intel's stock, which rose by 10.4%. This surge followed a positive meeting between Intel's CEO and President Trump. The NASDAQ is currently approaching key resistance levels between 25,800 and 25,850. For sustained upward movement, it needs to settle above the 25,850 mark.
Dow Jones Analysis
The Dow Jones index experienced an increase, supported by rising demand for industrial stocks, with Boeing and Caterpillar being notable gainers. A successful test of the resistance at 49,500-49,600 could propel the Dow towards the psychologically significant 50,000 level.
Additional Economic Indicators
Alongside the employment data, housing market indicators showed a decline in housing starts by 4.6% month-over-month in October, contrasting with an expected increase. Building permits also fell slightly, indicating potential challenges in the housing sector. Consumer sentiment improved, with the Michigan Consumer Sentiment index rising from 52.9 in December to 54.0 in January, although inflation expectations showed a slight increase.
Conclusion
The article concludes that the U.S. indices are poised for potential record highs, driven by positive employment data and market sentiment, despite some mixed signals from the housing market. Traders are advised to monitor key resistance levels for further indications of market direction.