Daily Market Insights - January 7, 2026
Market Overview
The stock market continued its strong start to the year, with the S&P 500 and DJIA reaching record highs. The S&P 500 rose by 0.6%, while the DJIA increased by 1.0%. The Nasdaq Composite also saw gains of 0.7%, and smaller-cap indices outperformed with the Russell 2000 up 1.4% and the S&P Mid Cap 400 up 1.5%.
Key Drivers
A significant catalyst for today's market was a rally in semiconductor stocks, with the PHLX Semiconductor Index climbing 2.8%. Notably, Microchip Technology (MCHP) raised its fiscal Q3 guidance, leading to a surge in its stock and boosting other memory storage companies like Sandisk and Western Digital.
NVIDIA launched its Rubin platform, which includes new chips for AI supercomputing, but its stock struggled to gain momentum. Tesla's stock fell sharply, while Amazon and other consumer discretionary stocks performed well.
Sector Performance
The materials and health care sectors both gained 2.0%, with Moderna seeing a significant rise after submitting its flu vaccine for approval. In contrast, the energy sector fell by 2.8%, primarily due to declines in Chevron's stock amid news regarding Venezuela's oil exports.
Market Sentiment
Overall, the market displayed a positive sentiment entering the new year, with broad leadership across cyclical sectors and strong performance in memory storage stocks, reflecting confidence in economic growth. U.S. Treasuries dipped slightly, with the 2-year note yield at 3.48% and the 10-year note yield at 4.18%.
Year-to-Date Performance
- S&P Mid Cap 400: +4.2% YTD
- Russell 2000: +4.1% YTD
- DJIA: +2.9% YTD
- S&P 500: +1.5% YTD
- Nasdaq Composite: +1.3% YTD