Market Wrap Summary - January 9, 2026

Overview

The North American session on January 9, 2026, was marked by a mixed but generally positive market response following the release of the Non-Farm Payroll (NFP) report. Although the headline number fell short of expectations by 10,000 jobs, the unemployment rate decreased to 4.4%, alleviating concerns stemming from previous downward revisions.

Market Reactions

In the wake of the NFP report, the US Dollar experienced a rally, yet this did not dampen the risk appetite among investors. Stock markets, particularly the Nasdaq, saw gains, closing up by 1% as the week concluded with a "Freedom Trade" theme.

Geopolitical Developments

On the geopolitical front, tensions in Iran escalated significantly. The Iranian regime has cut off internet and phone communications for over 24 hours in an attempt to quell massive protests that threaten to escalate into a revolution. Reports indicate that casualty figures have surpassed those from the "12-Day War," and the Iranian President has fled to Lebanon with his family. Major airlines, including Turkish Airlines, have suspended flights to Tehran, reflecting the instability in the region.

The US government, under the Trump Administration, is closely monitoring the situation, with potential intervention being considered in the near future.

Impact on Oil Prices

The turmoil in Iran has led to a significant increase in oil prices, which gapped up to $59 per barrel. With Iran's oil production capacity of over 5 million barrels per day at risk, energy markets are bracing for a potential supply shock.

Market Performance

Gold and silver prices are nearing critical milestones, with gold approaching $4,500 and silver nearing $80. European stocks have also rallied, with the EuroStoxx Index nearing the 6,000 mark, while US benchmarks have led the market throughout the week. The Nikkei index outperformed others, closing up 3.80%.

In contrast, cryptocurrencies have struggled despite an initial rally earlier in the week.

Currency Movements

The US Dollar has shown strength following the NFP report, while the Japanese Yen continues to face challenges, particularly after Prime Minister Takaichi's announcement regarding snap elections in mid-February.

Looking Ahead

The upcoming week is expected to be busy, with several economic data releases scheduled. Key indicators include Australia's TD-MI inflation gauge, New Zealand business confidence, ECB commentary, and US inflation data. Market participants will be keenly observing these developments as they position themselves for a more active macroeconomic week.