Daily Market Insights - January 7, 2026

Today marks the 244th anniversary of commercial banking in the United States, with the Bank of North America opening its doors in 1782. This institution played a crucial role in stabilizing the nation's finances and has evolved into a vast network holding approximately $25 trillion in assets.

Market Overview

The S&P 500® continued its upward trend, gaining 0.6% today. The High Beta segment was the best performer among large caps, rising 2.4%, while the Energy sector saw a decline of 2.8%.

Performance Highlights

• High Beta is up 6% year-to-date, continuing its strong performance from 2025.
• Low Volatility was the worst performer, lagging the benchmark by 14%.
• The VIX® closed at 14.8, indicating low market volatility.
• Gold's implied volatility remains high, with the Cboe Gold ETF Volatility Index (GVZ) at 24.

Fixed Income Insights

As risk appetite grows in equity markets, fixed income allocations may be worth considering. Emerging markets like Mexico, India, and Indonesia offer attractive yields, with local-currency sovereign bonds providing high single-digit returns. In the U.S., yields on leveraged loans and high-yield indices remain appealing, at over 7% and 6.8%, respectively.

Conclusion

Today's insights reflect a market characterized by optimism and strong performance in certain sectors, particularly High Beta. Investors may want to consider diversifying into fixed income as a hedge against potential volatility in equities.