Market Review: January 07, 2026
Closing Recap
| Index | Up/Down | % Change | Last |
|---|---|---|---|
| DJ Industrials | -466.00 | -0.94% | 48,966 |
| S&P 500 | -23.87 | -0.34% | 6,920 |
| Nasdaq | 37.10 | 0.16% | 23,584 |
| Russell 2000 | -7.48 | -0.29% | 2,575 |
Market Overview
US equity futures remained stable overnight after two days of gains. Concerns regarding Venezuela's oil flow and potential US plans for Greenland contributed to a cautious sentiment in the market. The Fear & Greed Index is currently at 52, indicating a neutral sentiment compared to last week's 44.
Mid-morning trading showed a decline in small caps, with decliners outpacing advancers by a ratio of 3:2. All eleven S&P sectors saw declines, although Health Care, Consumer Discretionary, and Technology managed to post gains.
Economic Data
The ADP national employment report indicated an increase of 41,000 private sector jobs in December, slightly below expectations. The JOLTS report showed job openings at 7.146 million, below consensus estimates. The ISM Services Index rose to 54.4, indicating growth in the services sector.
Mortgage applications have cooled despite a decline in fixed mortgage rates, with the purchase index falling by 6.2% in the latest week.
Sector News
Retail and Consumer Products
Piper downgraded DECK and WWW in footwear, citing concerns over discounting. Barclays upgraded Wayfair and Lowe's, anticipating improvements in discretionary goods demand. Oppenheimer established a bullish view on the restaurant sector, upgrading several stocks.
Energy
Energy stocks surged after comments from Energy Secretary Chris Wright about easing sanctions on Venezuelan oil. Crude oil prices fell slightly, settling at $55.99 per barrel.
Financials
Financial stocks took a breather after reaching all-time highs. JPMorgan announced the replacement of external proxy advisory firms with an in-house AI platform.
Biotech and Pharma
Several biotech companies announced public offerings, while GSK reported positive results from pivotal trials for a Hepatitis B treatment.
Conclusion
The market showed mixed signals with declines in major indices, driven by geopolitical concerns and economic data. Sector performances varied, with some areas like healthcare and technology showing resilience amidst broader market challenges.