Market Recap: 1.9.26
Equity markets staged a notable rebound this week, recovering from a sluggish year-end finish. The S&P 500 advanced by +0.92%, while the Dow Jones and Nasdaq Composite posted gains of +1.83% and +1.05%, respectively. Sector performance was led by Consumer Discretionary and Materials, whereas Utilities and Technology underperformed.
By: CIO Office
Summary
Equity markets staged a notable rebound this week, recovering from a sluggish year-end finish. The S&P 500 advanced by +0.92%, while the Dow Jones and Nasdaq Composite posted gains of +1.83% and +1.05%, respectively. Sector performance was led by Consumer Discretionary and Materials, whereas Utilities and Technology underperformed. December’s labor market data pointed to encouraging stabilization. Defense stocks surged following President Trump’s announcement of a $1.5 trillion defense budget. In the private markets sphere, Anthropic secured an additional $10 billion in funding, doubling its valuation to $350 billion in just four months. Meanwhile, Novo Nordisk launched its first GLP-1 weight loss drug in the U.S. on Monday. Precious metals rallied to begin the year, with gold and silver posting strong gains. Crude oil rebounded following the Trump Administration’s announcement that the U.S. will acquire 30-50 million barrels of oil from Venezuela at market price. Meanwhile, Bitcoin edged higher after a flat performance in the prior week.
10-Year Treasury Yield
- Current Rate: 4.18% (as of January 8, 2026)
- Week-to-date Movement: -1bp (from 4.19% on January 2, 2026)
Major U.S. Equity Indices Performance
- S&P 500: 6,858.47 → 6,921.46 (+0.92% WTD)
- DJIA: 48,382.39 → 49,265.68 (+1.83% WTD)
- Nasdaq Composite: 23,235.63 → 23,480.02 (+1.05% WTD)
Notable Market Events
- Macroeconomic Data: Labor market data for December indicated encouraging signs of stabilization. Private payrolls increased by +41,000, reversing the previous month’s decline of -29,000. All payroll growth was concentrated in services, with education and health-related fields adding +39,000 jobs and leisure and hospitality contributing +24,000. Trade, transportation, and utilities saw gains of +11,000, while financial services rose by +6,000. These increases were partially offset by losses of -29,000 jobs in professional and business services and -12,000 in information services. According to the Challenger, Gray & Christmas Job Cuts Report, the pace of layoffs in December reached its lowest level since July 2024. Planned job cuts totaled +35,553 for the month, representing a -50% decrease from November and an -8% decline compared to the same period last year.
- Economic Policy: Treasury Secretary Scott Bessent expressed support for the current administration’s monetary policy agenda ahead of a speech at the Economic Club of Minnesota. On Thursday, Fed Governor Stephen Miran advocated for -150 basis points of rate cuts by year-end, noting that underlying inflation is close to target and the Federal Reserve has flexibility to ease policy in support of the labor market. Richmond Fed President Thomas Barkin emphasized that the Fed’s short-term interest rate will need to be carefully adjusted in response to incoming data, given the risks to both employment and inflation objectives. Markets are pricing in two rate cuts by year-end as the Committee weighs incoming macroeconomic data.
- Business: General Motors (NYSE: GM) reported on Monday a +5.5% increase in annual U.S. sales for 2025, even as fourth-quarter sales declined by -6.9%. Defense stocks rallied on Thursday after President Trump called for a $1.5 trillion defense budget and announced that dividends and buybacks would not be permitted for defense companies. Anthropic signed a term sheet for a $10 billion funding round at a $350 billion valuation, nearly doubling its valuation from four months ago. On Monday, Novo Nordisk (NYSE: NVO) launched its first-ever GLP-1 drug for weight loss in the U.S.
- Markets: Commodities delivered a mixed performance this week. Gold and silver posted strong gains, advancing +3.3% and +5.8%, respectively. Crude oil was notably volatile but ultimately rose +2.3%, buoyed by the Trump Administration’s announcement that the U.S. will acquire 30-50 million barrels of oil from Venezuela at market price. Bitcoin rebounded, climbing +1.2% after remaining flat the previous week.
Stock Sector Performance
All performance numbers and market events are sourced from Bloomberg as of market close 1/8/2026.
Disclosures
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