Market Review: January 02, 2026

Closing Recap

On January 2, 2026, U.S. stocks experienced a mixed day of trading. The S&P 500 index managed to break a four-day losing streak, closing slightly higher, while the Nasdaq saw a minor decline. The DJ Industrials and Russell 2000 both posted gains, with the DJ Industrials up 0.66% and the Russell 2000 up 1.06%. The S&P 500 rose by 0.19%, while the Nasdaq fell by 0.04%.

Market Sentiment

Market sentiment was positively influenced by several global trade headlines, including the U.S. decision to drop plans for significant antidumping tariffs on Italian pasta and the postponement of higher tariffs on various furniture items. Despite a strong start driven by tech stocks, particularly in semiconductors and AI, the software sector struggled throughout the day. The Energy sector saw a notable rise of 2%, while other sectors like Utilities and Materials also gained over 1%. However, Consumer Discretionary and Communications lagged behind.

Upcoming Events

Looking ahead, the Consumer Electronics Show (CES) 2026, running from January 6 to January 9 in Las Vegas, is expected to be a focal point for tech developments, particularly in artificial intelligence and robotics. Key presentations from Nvidia and AMD are anticipated, along with showcases of AI-powered devices and robotics innovations.

Macro Observations

According to Canaccord, several macroeconomic observations heading into 2026 include:

• Inflation is under control, but consumer fears persist.
• A constructive credit environment with strong corporate debt service and ample liquidity.
• Improving economic growth, particularly in the services sector.
• Consumer confidence remains low due to inflation and unemployment concerns.
• Continued rate-cutting cycles in the U.S. and globally, with some central banks signaling an end to easing.
• Resilient corporate earnings, suggesting a positive outlook for stocks despite high valuations.

Market Statistics

In the weekly sentiment data, the bull-bear spread in the AAII survey increased to +15%, with a rise in bullish sentiment. The NAAIM Exposure Index saw a slight decline, indicating a cautious approach among investors.

Commodities and Currencies

Crude oil prices ended the year on a weak note, with WTI crude down to $57.32. The upcoming OPEC+ meeting is expected to maintain steady oil output. In metals, prices experienced volatility after significant gains in 2025, with gold settling at $4,329.60. Cryptocurrencies saw a rebound, with Bitcoin rising to around $89,500.

Sector News

Automotive Sector

In the automotive sector, Tesla reported Q4 deliveries below estimates, leading to a decline in its stock price. Rivian also missed delivery expectations, while other EV manufacturers like Nio and XPeng reported strong growth in deliveries.

Retail and Consumer Goods

Furniture retail stocks rose following the postponement of tariffs on furniture items. In the casino sector, Macau gaming revenue increased but fell short of expectations.

Financials and Biotech

Freddie Mac reported a decrease in mortgage rates, while biotech stocks experienced mixed results, with some companies reporting strong revenue forecasts and others facing regulatory setbacks.

Technology Sector

The semiconductor sector saw significant gains, with major companies like ASML and Nvidia leading the charge. US-listed Chinese stocks also started the year strong.