Market Analysis Summary - January 7, 2026

The article discusses the recent performance of major U.S. stock indices, including the S&P 500, NASDAQ, and Dow Jones, in light of economic data releases and market trends.

S&P 500 Performance

The S&P 500 index has tested historic highs, buoyed by a strong ISM Services PMI report which rose from 52.6 in November to 54.4 in December, surpassing analyst expectations of 52.3. This indicates economic expansion, as values above 50 signify growth. Despite weaker job market data, including a drop in JOLTs Job Openings and ADP Employment Change, the S&P 500 managed to climb above the resistance levels of 6940-6950 and is attempting to settle above 6960. If successful, it could target the 7000 level, with the RSI indicating potential for further upside momentum.

NASDAQ Index Insights

The NASDAQ index also saw gains, primarily driven by a 7.3% increase in Intel's stock following the announcement of new AI PC processors. A successful test of the resistance level at 25,800-25,850 could lead to further advances towards historic highs near 26,300.

Dow Jones Analysis

In contrast, the Dow Jones index experienced a decline, influenced by reduced demand for industrial and financial stocks. Major contributors to this downturn included Caterpillar, 3M, and Honeywell. The Dow attempted to break above the resistance at 49,500-49,600 but lost momentum, retreating to around 49,200. Should it settle below this level, it may head towards the nearest support range of 48,700-48,800, with the 50-day moving average providing additional support at 48,669.

Conclusion

The article highlights a mixed performance across U.S. indices, with the S&P 500 and NASDAQ showing resilience and potential for further gains, while the Dow Jones faces challenges amid sector-specific weaknesses. Investors are advised to monitor these developments closely as they could influence trading strategies moving forward.