Stocks advanced to start the first full trading week of 2026, with broad-based strength lifting the DJIA (+1.2%) to record highs while the S&P 500 (+0.6%) and Nasdaq Composite (+0.7%) also notched solid gains. 

Today's action featured notable outperformances across cyclical sectors, with the energy (+2.7%), financials (+2.2%), and consumer discretionary (+1.9%) sectors leading the strength. 

Energy names unsurprisingly garnered quite a bit of coverage today following the capture of Venezuelan President Nicolas Maduro over the weekend. Maduro was charged with narco-terrorism in a New York court and pleaded not guilty this afternoon. 

Oilfield services names, such as Halliburton (HAL 31.92, +2.32, +7.84%) and SLB (SLB 43.80, +3.60, +8.96%), were among the top-performing S&P 500 names today amid speculation that the U.S. could become involved in rebuilding oil production infrastructure in Venezuela. Valero Energy (VLO 180.57, +15.26, +9.23%) captured a similar gain, as CNBC reported the company is best equipped to refine the particularly sulfur-rich oil that Venezuela produces, while Chevron (CVX 163.87, +7.97, +5.11%), the only major U.S. oil producer in the country, also notched a solid gain. 

Elsewhere, the financials sector was another outperformer today, supported by strength across major banking names such as Goldman Sachs (GS 948.44, +34.10, +3.73%) and JPMorgan Chase (JPM 334.04, +8.56, +2.63%) (both Dow components). Coinbase Global (COIN 254.92, +18.39, +7.77%) captured the widest gain after Goldman Sachs upgraded the stock to Buy from Neutral, raising its price target to $303 (up from $294), with Robinhood Markets (HOOD 123.24, +8.03, +6.97%) capturing a similar gain. 

Meanwhile, the consumer discretionary sector was supported by strong leadership from Amazon (AMZN 233.06, +6.56, +2.90%) and Tesla (TSLA 451.67, +13.60, +3.10%), which were standouts across mega-cap names today. 

However, the Vanguard Mega Cap Growth ETF would advance just 0.3%, as the top-weighted information technology sector (-0.2%) was a laggard, with some of its largest components trading lower. The sector traded higher until just after midday, with losses across names such as NVIDIA (NVDA 188.12, -0.73, -0.39%), Apple (AAPL 267.26, -3.75, -1.38%), and Broadcom (AVGO 343.42, -4.20, -1.21%) pushing the sector lower. 

Despite losses across several prominent chipmakers, the industry as a whole extended Friday's strength, with the PHLX Semiconductor Index closing 1.1% higher. 

The defensive utilities (-1.2%), health care (-0.3%), and consumer staples (-0.3%) sectors underperformed amid the rotation into more cyclical holdings. 

Outside of the S&P 500, the Russell 2000 (+1.6%) and S&P Mid Cap 400 (+1.2%) largely outperformed their larger-cap counterparts.  Comcast (CMCSA 28.13, -1.41, -4.77%) spin-off Versant (VSNT 40.57, -6.08, -13.03%) was not among the smaller-cap names to trade higher, facing a sharp loss on its first day trading on the Nasdaq. 

Ultimately today's action marked a step in the right direction that has been drifting over the past few weeks. While the major averages failed to notch meaningful gains over the "Santa Claus rally" period, today saw a return to more average volume levels as investors returned from holiday. Advancers outpaced decliners by more than a 2-to-1 margin on both the NYSE and Nasdaq, and the major averages posted gains despite a modest decline in the information technology sector-suggesting leadership may be broadening, even as strong performances from select mega-cap and semiconductor names continue to fuel enthusiasm around the AI trade.

U.S. Treasuries began the first full week of January with an advance that pressured yields on longer tenors from their December highs while the 2-year yield approached its December low. The 2-year note yield settled down two basis points to 3.46%, and the 10-year note yield settled down two basis points to 4.17%. 

• Russell 2000: +2.7% YTD
• S&P Mid Cap 400: +2.6% YTD
• DJIA: +1.9% YTD
• S&P 500: +0.8% YTD
• Nasdaq Composite: +0.7% YTD

Reviewing today's data:

• The ISM Manufacturing Index checked in at 47.9% for December (Briefing.com consensus: 48.4%), down from 48.2% in November. The dividing line between expansion and contraction is 50.0%, so the December figure, which is the tenth straight month below 50.0%, suggests manufacturing activity contracted at a faster pace than the prior month.
  • The key takeaway from the report is that the manufacturing sector operated in a state of contraction for the tenth consecutive month, with tariffs and weaker order activity cited as key drags on overall activity.