Daily Market Insights - January 6, 2026

U.S. equities began the week positively, with mid- and small-cap stocks outperforming large caps despite a decline in the ISM Manufacturing PMI to 47.9. The S&P MidCap 400® and S&P SmallCap 600® rose by 1.3% and 1.2%, respectively, while the S&P 500® increased by 0.6%. The energy sector led gains, up 2.7%, while utilities lagged, down 1.2%.

Market Highlights

• The Energy Equipment and Services industry is leading the S&P Composite 1500, up 10% year-to-date, driven by expectations of U.S. involvement in Venezuela's oil sector.
• The Consumer Electronics Show is ongoing, with major chipmakers launching new products, but market reactions have been muted, particularly for the semiconductor sector.
• Precious metals are showing strength, with silver up 9% and gold up 3% year-to-date, supported by anticipated rate cuts and strong demand.

Performance Overview

Despite the overall positive sentiment, the semiconductor sector has underperformed compared to its U.S. counterparts, with Dutch companies lagging significantly since the introduction of ChatGPT.

Overall, commodities are performing well, with 22 out of 24 S&P GSCI constituents posting gains this year.

Looking Ahead

Market participants are closely watching for potential interest rate cuts from the Federal Reserve, which could further influence market dynamics and investor sentiment in the coming weeks.