[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.3%), and DJIA (+0.2%) notched modest gains today as stocks mounted a broad reversal from early losses. Today's gains culminated in fresh record highs for the S&P 500, while the DJIA notched a record close. 

The stock market opened to relatively broad losses this morning as investors navigated a handful of negative news items. Most notably, Fed Chair Jerome Powell confirmed that he is the subject of a Department of Justice criminal probe tied to his testimony before the Senate Banking Committee concerning renovations to Fed headquarters. The headline raised concerns about the Federal Reserve's political independence, although the market has grown familiar with this narrative in recent years.

While the broader market saw the development as an excuse to take some profits following Friday's record highs, the market quickly began to regain its footing, and by midday, the major averages were mostly higher. 

The financials sector (-0.8%) was one of very few S&P 500 sectors that remained firmly lower, facing additional pressure from a separate premarket development. President Trump's call to cap credit card interest rates at 10% caused a sharp drop in many credit card and banking names. Synchrony Financial (SYF 79.63, -7.26, -8.36%) and Capital One (COF 233.20, -16.00, -6.42%) were the worst-performing S&P 500 names today, while American Express (AXP 359.59, -16.02, -4.27%) and Citigroup (C 117.70, -3.62, -2.98%) also faced notable retreats. 

JPMorgan Chase (JPM 324.49, -4.70, -1.43%) also traded lower ahead of its earnings release tomorrow, the first of a busy week for major banking names. 

The energy sector (-0.7%) was the only other laggard today despite crude oil futures settling today's session $0.45 higher (+0.8%) at $59.55 per barrel. Exxon Mobil (XOM 123.98, -0.62, -0.50%) CEO Darren Woods said that Venezuela is "uninvestable" in its current state, a comment that drew the ire of President Trump, prompting him to say he might keep Exxon out of the country himself.

Meanwhile, the nine other S&P 500 sectors finished at or above their baselines. 

Though the information technology sector (+0.4%) finished with only about half of its gain from session highs, its steady rise from an opening loss was pivotal in lifting the major averages decidedly above their baselines.

Memory storage names Western Digital (WDC 212.18, +11.72, +5.85%) and Seagate Tech (STX 321.48, +17.47, +5.75%) posted another day of impressive gains, leaving the two stocks up 23.1% and 16.7% for the year, respectively. 

The PHLX Semiconductor Index (+0.5%) advanced nicely, though NVIDIA (NVDA 184.89, +0.03, +0.02%) once again ceded a solid intraday gain.

Elsewhere, the consumer staples sector (+1.4%) captured the widest gain, a lead that it held from early in the session.  Walmart (WMT 117.97, +3.44, +3.00%) provided solid leadership after news that it will join the Nasdaq 100 Index, with Costco (COST 943.08, +18.20, +1.97%) also trading higher. 

Dollar General (DG 148.86, +6.12, +4.29%) and Dollar Tree (DLTR 137.24, +4.86, +3.67%) both rebounded from Friday's pullback, which followed investor disappointment after the Supreme Court declined to issue a ruling on the legality of President Trump's IEEPA tariffs. 

The materials sector (+0.7%) was another top mover as concerns around Fed independence drove gold to fresh record highs, with the metal settling today's session $114.30 higher (+2.5%) at $4,615.30 per troy ounce. As is often the case when precious metals rally, Freeport-McMoRan (FCX 58.70, +2.17, +3.84%) and Newmont Corporation (NEM 112.92, +3.93, +3.61%) posted solid gains. 

Elsewhere, the industrial sector (+0.8%) rounds out the top three movers today with strong showings from defense names sending the iShares Aerospace and Defense ETF 1.5% higher amid continued geopolitical uncertainty.  The Wall Street Journal reported that President Trump is considering an Irnaian offer for diplomacy, but he is leaning towards approving new military strikes on the country and will meet with advisors tomorrow. 

Outside of the S&P 500, the Russell 2000 (+0.4%) and S&P Mid Cap 400 (+0.2%) added to their year-to-date gains that see them outperform the major averages early in the year. 

Though today's gains across the major averages were modest, the reversal from opening lows reflects resilience in a market that continues to chart record highs in broad fashion. Stocks were able to shake the early weakness tied to concerns of Fed independence and put together another winning session. Attention now turns to tomorrow's 8:30 a.m. ET release of the December CPI (Briefing.com consensus 0.3%) and Core CPI (Briefing.com consensus 0.3%) readings, which will be a key near-term catalyst for markets. A hotter print could push rate-cut expectations further out from their current several-month horizon, while a softer reading would likely support the market's push to new highs.

U.S. Treasuries began the week with losses across the curve, but an intraday resilient showing helped the complex finish above morning lows. The U.S. Treasury sold $58 billion in 3-year notes and $39 billion in 10-year notes, both of which were met with good demand. The 2-year note yield settled up one basis point to 3.55%, and the 10-year note yield settled up two basis points to 4.19%. 

There was no economic data of note today. 

• Russell 2000: +6.2% YTD
• S&P Mid Cap 400: +4.9% YTD
• DJIA: +3.2% YTD
• Nasdaq Composite: +2.1% YTD
• S&P 500: +1.9% YTD

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.4%), and DJIA (flat) sit a touch off of session highs with half an hour left in today's session. 

After a slow start to the session, strength has steadily broadened, culminating in a new record high for the S&P 500. 

Attention now turns to tomorrow's 8:30 a.m. ET release of the December CPI (Briefing.com consensus 0.3%) and Core CPI (Briefing.com consensus 0.3%), widely viewed as one of the most consequential macro events of the year. While the market does not anticipate Fed easing for several months, a hotter-than-expected CPI print could further delay expectations for the next rate cut and cloud the growth outlook. A downside surprise, by contrast, would provide another catalyst for a market that has opened the year pushing to fresh record highs.

Additionally, JPMorgan Chase (JPM 323.37, -5.82, -1.77%) is set to kick off the big banks' earnings this week. The company has delivered seven consecutive EPS beats of at least $0.22, though last quarter's upside was its smallest since a miss in Q4 FY23.  Investors will closely monitor CEO Jamie Dimon's outlook on the U.S. economy heading into 2026, particularly labor trends, credit quality, and any commentary on President Trump's proposal to cap credit card interest rates at 10%.

[BRIEFING.COM] The S&P 500 (+0.2%) has notched a fresh all-time high as the top-weighted information technology sector (+0.8%) continues to chart session highs this afternoon. 

Memory storage names Western Digital (WDC 211.64, +11.18, +5.58%) and Seagate Tech (STX 319.09, +15.08, +4.96%) are once again atop the sector's standings, adding to their impressive gains this year that have seen Western Digital advance 23.0% and Seagate advance 15.9% this year. 

The PHLX Semiconductor Index (+0.8%) trades in-line with the broader sector, with NVIDIA (NVDA 186.80, +1.94, +1.05%) now among the best-performing "magnificent seven" names today. 

[BRIEFING.COM] The S&P 500 (+0.20%) is in second place on Monday afternoon, up about 14 points.

Briefly, S&P 500 constituents Dexcom (DXCM 71.77, +4.37, +6.48%), Albemarle (ALB 168.68, +7.39, +4.58%), and Seagate Tech (STX 318.00, +13.99, +4.60%) dot the top of the standings. DXCM rises after a solid Q4 update, while ALB caught a Scotiabank upgrade to Sector Outperform this morning, and STX announced new 32TB drives across select product lines.

Meanwhile, biotech firm Moderna (MRNA 32.68, -1.62, -4.72%) is one of today's worst laggards after the company's business update met expectations but did little to change the near-term outlook, with FY25 revenue merely matching consensus and "up to 10%" growth in 2026 seen as modest off a depressed base. Investors also remain focused on the long path to profitability, as operating expenses still far exceed revenue and concrete late-stage pipeline catalysts were lacking.

[BRIEFING.COM] With about two hours to go on Monday the tech-heavy Nasdaq Composite (+0.40%) holds a firm lead, up about 95 points.

Gold futures settled $113.80 higher (+2.5%) at $4,614.70/oz, as investors rushed into safe havens following reports of a U.S. DOJ criminal investigation involving Fed Chair Jerome Powell, which pressured the dollar and raised concerns about the Fed's independence. Ongoing geopolitical tensions and growing expectations for future Fed rate cuts further supported gold by reinforcing risk-off sentiment and lowering real yield assumptions.

Meanwhile, the U.S. Dollar Index is down about -0.2% to $98.89.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.03%) is narrowly higher now, having climbed out of the red in the last half hour.

A look inside the DJIA shows that American Express (AXP 359.96, -15.65, -4.17%), Walt Disney (DIS 113.09, -2.79, -2.41%), and JPMorgan Chase (JPM 322.34, -6.85, -2.08%) are underperforming.

Meanwhile, Walmart (WMT 118.26, +3.73, +3.26%) is atop the average.

The DJIA is now +3.03% month-to-date.

Elsewhere, recent action saw an extension of the bounce in Treasuries with the 10-yr yield now up just one basis point from last week's settlement while the 5-yr note is back on its unchanged level. Treasuries climbed steadily during the 90 minutes that followed today's 3-yr note sale, and they remain just below their highs in immediate reaction to the just completed $39 bln 10-yr note sale. The auction drew a high yield of 4.173%, which stopped through the when-issued yield by 0.7 basis points while the bid-to-cover ratio (2.55x) was just above average (2.54x). Indirect takedown (69.6%), however, was a bit on the light side of average (70.6%).

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.3%), and DJIA (-0.2%) sit mostly higher, steadily improving from opening lows throughout the session. 

The broader market faced pressure at the open as investors reacted to Fed Chair Jerome Powell's confirmation that the Department of Justice is investigating him criminally in connection with his testimony to the Senate Banking Committee regarding renovations to Fed headquarters. A slight majority of S&P 500 sectors opened lower as the headline called into question the independence of the Federal Reserve, though the market quickly improved to a mixed standing.

President Trump's call for a one-year 10% interest rate cap on credit cards added to the negative tilt this morning as a range of credit card providers and money center bank names moved lower in response. Notable losses across names such as Synchrony Financial (SYF 79.55, -7.34, -8.45%), Capital One (COF 232.88, -16.32, -6.55%), American Express (AXP 359.77, -15.84, -4.22%), and Citigroup (C 117.06, -4.26, -3.51%) keep the financials sector (-1.1%) firmly lower despite improvements to the broader market. 

The health care sector (-0.7%) is another laggard, posting losses across most of its components amid a slow start to the year. However, Dexcom (DXCM 71.28, +3.88, +5.76%) is the top-performing S&P 500 name today after guiding Q4 revenues slightly above consensus and guiding FY26 revenues in-line. 

Developments surrounding Venezuela keep the energy sector (-0.6%) lower despite a modest increase to the price of oil today.  Exxon Mobil (XOM 123.60, -1.02, -0.81%) CEO Darren Woods said that Venezuela is "uninvestable" in its current state, a comment that drew the ire of President Trump, prompting him to say he might keep Exxon out of the country himself. 

Meanwhile, five S&P 500 sectors trade higher, with several notable intraday moves lifting the major averages to session highs. 

The top-weighted information technology sector (+0.5%) is one such sector that has shaken off an early loss.  Akamai Tech (AKAM 92.96, +4.84, +5.50%) is among the top-performing S&P 500 names after Morgan Stanley upgraded the stock to Overweight from Underweight, while steady improvements across semiconductor and mega-cap names seat both the PHLX Semiconductor Index (+0.6%) and Vanguard Mega Cap Growth ETF (+0.3%) in positive territory. 

The latter ETF is also supported by the consumer discretionary sector (+0.4%), which is led by a solid gain in Tesla (TSLA 452.58, +7.57, +1.70%). 

Elsewhere in the sector, lululemon athletica (LULU 210.54, +6.64, +3.26%) trades higher after providing a strong raised outlook for Q4, while homebuilder names continue to outperform. 

The consumer staples sector (+1.3%) has been the S&P 500's top advancing sector since the open, with Walmart (WMT 118.41, +3.88, +3.39%) rising as it is set to join the Nasdaq 100 Index. The materials sector (+0.8%) has been another top mover since the open as precious metals prices have seen a safe-haven flight to fresh record highs. 

All told, the market has held up rather well despite pre-market indications of a pullback. The S&P 500 now faces some resistance at Friday's all-time high level (6,978.36), but the major averages are well improved from a lower open. 

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.3%), and DJIA (-0.2%) continue to sit near session highs just after midday. 

After an opening loss, the consumer discretionary sector (+0.5%) now holds a solid gain.  Tesla (TSLA 452.39, +7.38, +1.66%) is a mega-cap standout as the market's largest names continue to improve throughout the session, with the Vanguard Mega Cap Growth ETF now up 0.4%. 

lululemon athletica (LULU 209.50, +5.60, +2.75%) is another top mover after providing a strong raised outlook for Q4 earlier this morning, primarily driven by a robust holiday season. The company now expects net revenue and diluted earnings per share to come in at the high end of its previously issued guidance ranges of $3.50-$3.59 billion and $4.66-$4.76, respectively.

Elsewhere, homebuilder names such as Lennar (LEN 122.70, +3.46, +2.90%) and D.R. Horton (DHI 160.16, +2.88, +1.83%) contribute to another solid day for homebuilder names. The iShares U.S. Home Construction ETF is up 1.4% today, extending this year's gain to 12.6%. 

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.3%), and DJIA (-0.1%) now sit at their best levels of the session.

Meanwhile, longer-dated Treasuries hover just below their rebound highs, while the short end remains behind, with the 2-year note (3.55%) trading just above its low. The entire complex has held its ground in reaction to today's first auction, which was just completed. The $58 billion 3-year note sale met good demand, as the high yield stopped through the when-issued yield by a tenth of a basis point, while the bid-to-cover ratio (2.65x) was just above average (2.63x). Indirect takedown (56.5%) made for the only blemish, coming in below average (70.6%). The U.S. Treasury will sell $39 billion in 10-year notes in just under 90 minutes.

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (+0.2%), and DJIA (-0.2%) sit mixed shortly before midday, modestly improved from opening lows. The Russell 2000 (flat) and S&P Mid Cap 400 (flat) have followed a similar trajectory after opening to modest losses as well. 

The broader market is mixed as investors navigate several notable developments today. Equity futures lagged ahead of the open after Fed Chair Jerome Powell confirmed yesterday evening that the Department of Justice is investigating him criminally in connection with his testimony to the Senate Banking Committee regarding renovations to Fed headquarters

Though most sectors have improved from opening lows, the financials sector (-1.0%) remains a laggard, facing pressure in its banking and lender names after President Trump called for a one-year 10% interest rate cap on credit cards.  Synchrony Financial (SYF 79.92, -6.97, -8.02%) and Capital One (COF 233.71, -15.49, -6.22%) are the worst-performing S&P 500 names today, while Citigroup (C 117.13, -4.19, -3.45%) and American Express (AXP 359.04, -16.57, -4.41%) also lag. 

The energy sector (-0.6%) also lags after Exxon Mobil (XOM 123.62, -0.98, -0.79%) CEO Darren Woods called into question the feasibility of investment opportunities in Venezuela. 

Meanwhile, seven S&P 500 sectors trade higher, with the defensive consumer staples sector (+1.2%) leading, while the materials sector (+0.8%) also holds a nice gain amid a safe-haven flight to precious metals that has culminated in fresh record high prices. 

[BRIEFING.COM] The major averages continue to trade in a relatively stable range, sitting mixed for the day.

Dexcom (DXCM 71.55, +4.15, +6.15%) is the top-performing S&P 500 name despite being downgraded to Underweight from Equal Weight at Barclays, with a target price of $71. The company issued upside guidance for Q4 (Dec), seeing Q4 (Dec) revs of $1.26 billion vs. the $1.24 billion FactSet Consensus. US revenue is expected to be up 11% year-over-year to approximately $892 million. International revenue is expected to be up 18% year-over-year to approximately $368 million.

The company issued in-line guidance for FY26 (Dec), seeing FY26 (Dec) revs of $5.16-5.25 billion vs. the $5.23 billion FactSet Consensus.

Meanwhile, Akamai Tech (AKAM 93.13, +5.01, +5.69%) is another top mover after being upgraded to Overweight from Underweight at Morgan Stanley, with a target price of $115. 

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (+0.1%), and DJIA (-0.5%) continue to sit mixed. 

Retail names are under pressure today, with shares of Abercrombie & Fitch (ANF 102.57, -22.30, -17.86%) plummeting after issuing underwhelming Q4 (Jan) guidance, disappointing investors who were positioned for a stronger holiday-quarter upside following an impressive Q3.

Q4 EPS guidance was narrowed to $3.50-3.60 from $3.40-3.70, which now sits slightly below Street expectations and removes hopes for a meaningful upside quarter. Revenue growth guidance was also narrowed to around 5% from 4-6%, disappointing analysts who were skewed toward the higher end of the prior range.

The SPDR Retail ETF is down 1.0%, with American Eagle (AEO 24.68, -2.14, -7.98%) another notable laggard. Meanwhile, Dollar General (DG 146.73, +3.99, +2.80%) holds a solid gain after trading lower in Friday's session in reaction to the Supreme Court not issuing a decision on the legality of President Trump's IEEPA tariffs. 

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (flat), and DJIA (-0.3%) now sit mixed after modest opening losses. 

The financials sector (-1.0%) is unsurprisingly a laggard this morning, with lenders such as Synchrony Financial (SYF 80.87, -6.00, -6.91%) and Capital One (COF 234.36, -14.84, -5.96%) among the worst-performing S&P 500 names after President Trump called for a one-year 10% interest rate cap on credit cards. 

The energy sector (-0.7%) is also down as geopolitical tensions in Venezuela and Iran continue to cause volatility in oil prices. Crude oil is currently down $0.58 (-1.0%) to $58.54 per barrel.

Meanwhile, the broader market is largely improved from a mostly lower open. 

The consumer staples sector (+0.9%) is the early standout, with strong leadership coming from Walmart (WMT 116.77, +2.24, +1.96%) after news that the company will be added to the Nasdaq 100 Index prior to the market open on January 20. 

Elsewhere, the materials sector (+0.5%) advances as precious metals prices surge amid a safe-haven rally, and even the information technology sector (+0.1%) now holds a modest gain. 

The stock market is on track for a lower opening this morning as investors react to the Department of Justice criminally probing the Federal Reserve. 

Major banking names, many of which report earnings this week, are lower amid calls from President Trump to cap credit card interest rates. 

Meanwhile, big tech is mostly lower in the pre-market after a solid start to the year, while gold is charting record highs, suggesting a risk-off disposition to start the week. 

The S&P 500 futures currently trade 37 points below fair value. 

Equity indices in the Asia-Pacific region enjoyed a higher start to the week while Japan's Nikkei was closed for a holiday. Press reports from Japan suggest that Prime Minister Takaichi could call a snap election for February in order to boost her coalition's numbers in parliament. South Korea's exports through the first ten days of January were down 2.3% yr/yr but chip exports still jumped 45.6% yr/yr while auto and ship exports fell. Australia is planning to establish a critical minerals strategic reserve by the end of the year.

• In economic data:
  • India's December CPI 1.33% yr/yr (expected 1.50%; last 0.71%)
  • Australia's December ANZ Job Advertisements -0.5% m/m (last -1.5%)

---Equity Markets---

• Japan's Nikkei: HOLIDAY
• Hong Kong's Hang Seng: +1.4%
• China's Shanghai Composite: +1.1%
• India's Sensex: +0.4%
• South Korea's Kospi: +0.8%
• Australia's ASX All Ordinaries: +0.5%

Major European indices trade near their flat lines while Germany's DAX (+0.4%) outperforms, extending to a fresh record high with health care and industrials contributing to the relative strength. There are some concerns that France will go into the spring without a full budget agreement for the year if the tentative coalition government collapses.

• In economic data:
  • Eurozone's January Sentix Investor Confidence -1.8 (expected -5.1; last -6.2)
  • Swiss December SECO Consumer Climate -31 (expected -33; last -34)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: +0.4%
• U.K.'s FTSE 100: +0.1%
• France's CAC 40: -0.1%
• Italy's FTSE MIB: -0.1%
• Spain's IBEX 35: -0.1%

The S&P 500 futures currently trade 36 points below fair value. 

News that the Department of Justice is criminally investigating Fed Chair Jerome Powell has caused several notable moves in the market this morning. 

Gold is back at record high levels, eclipsing the $4,600 per troy ounce level for the first time amid concerns of decreasing Fed independence. 

Meanwhile, bank stocks such as Citigroup (C 117.00, -4.32, -3.6%) and JPMorgan Chase (JPM 321.98, -7.21, -2.2%) move lower, facing additional pressure after President Trump called for a one-year 10% interest rate cap on credit cards. 

Equity futures point to a lower opening this morning after stocks had a strong first full week of 2026, with the major averages all gaining at least 1.5% on broad strength while small-caps outperformed. This week could prove to be consequential as well, as the market anticipates earnings reports from major banking names along with the latest CPI and PPI readings. 

The independence of the Fed is squarely in the headlines this morning after Fed Chair Jerome Powell said that the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to his testimony before the Senate Banking Committee last June that was related to renovations of the Fed's office buildings. 

NBC News reports that President Trump, in an interview, denied any involvement in the investigation, while Bloomberg reports that FHFA Director Bill Pulte was the key person behind the decision to issue the subpoena. 

Elsewhere, geopolitical tensions continue to escalate, with The New York Times reporting that President Trump is seriously considering authorizing a strike on Iran as anti-government protests continue to escalate. 

Developments in Venezuela continue to generate headlines as well, with Bloomberg reporting that oil companies are cautious about returning operations to the country after Exxon Mobil (XOM 123.60, -1.01, -0.8%) CEO called the country "uninvestable." In response, President Trump said he might block the company from investing in Venezuela, according to Reuters. 

In corporate news:

• President Trump called for a one-year cap on credit card interest rates of 10%, sending credit card stocks lower.
• NVIDIA (NVDA 183.08, -1.74, -0.9%) and Tesla (TSLA 442.65, -2.36, -0.5%) are pursuing the same self-driving goal, according to Bloomberg. 
• Paramount (PSKY 12.12, +0.06, +0.5%) initiated "Plan D" to top Netflix's (NFLX 89.22, -0.22, -0.2%) bid for Warner Brothers (WBD 28.63, -0.26, -0.9%), according to The New York Post. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region enjoyed a higher start to the week while Japan's Nikkei was closed for a holiday. Japan's Nikkei: HOLIDAY, Hong Kong's Hang Seng: +1.4%, China's Shanghai Composite: +1.1%, India's Sensex: +0.4%, South Korea's Kospi: +0.8%, Australia's ASX All Ordinaries: +0.5%.

In news:

• Press reports from Japan suggest that Prime Minister Takaichi could call a snap election for February in order to boost her coalition's numbers in parliament.
• South Korea's exports through the first ten days of January were down 2.3% yr/yr but chip exports still jumped 45.6% yr/yr while auto and ship exports fell.
• Australia is planning to establish a critical minerals strategic reserve by the end of the year.

In economic data:

• India's December CPI 1.33% yr/yr (expected 1.50%; last 0.71%)
• Australia's December ANZ Job Advertisements -0.5% m/m (last -1.5%)

Major European indices trade near their flat lines, while Germany's DAX (+0.6%) outperforms, extending to a fresh record high, with health care and industrials contributing to the relative strength. STOXX Europe 600: -0.1%, Germany's DAX: +0.6%, U.K.'s FTSE 100: +0.1%, France's CAC 40: UNCH, Italy's FTSE MIB: +0.1%, Spain's IBEX 35: UNCH.

In news:

• There are some concerns that France will go into the spring without a full budget agreement for the year if the tentative coalition government collapses.

In economic data:

• Eurozone's January Sentix Investor Confidence -1.8 (expected -5.1; last -6.2)
• Swiss December SECO Consumer Climate -31 (expected -33; last -34)

[BRIEFING.COM] The stock market ended the first full trading week of 2026 on a high note, with the S&P 500 (+0.7%) once again capturing record highs. Broad-based gains saw the Nasdaq Composite (+0.8%) and DJIA (+0.5%) notch similar gains, with the Dow capturing a record closing high of its own. 

Stocks had a somewhat muted opening as investors digested a heavy batch of economic data. The December Employment Situation report (50,000; Briefing.com consensus 55,000) showed slightly weaker-than-expected growth in payrolls, while the unemployment rate dipped to 4.4% from 4.5% and average hourly earnings growth accelerated to 3.8% from 3.6%. The report pushed back the market's expectation of the next rate cut from April to June but painted a solid enough picture of the labor market to quell fears of a downturn in consumer spending and the economy. 

With all recent indicators pointing to a strong 2026 economy, stocks advanced in broad fashion, similar to Monday and Tuesday's sessions. Nine S&P 500 sectors captured gains, with several sector-specific developments acting as catalysts.

In the case of the top-weighted information technology sector (+1.0%), support came from a strong rebound in chipmaker names after yesterday's pullback. The PHLX Semiconductor Index finished 2.7% higher. Sandisk (SNDK 377.41, +42.87, +12.81%) was the sector's top performer after Tom's Hardware reported the company plans a sharp increase in enterprise SSD pricing in early 2026 as AI demand grows. Intel (INTC 45.55, +4.44, +10.80%) also captured a double-digit gain after President Trump touted a great meeting with CEO Lip-Bu Tan yesterday evening. 

The consumer discretionary sector (+1.1%) also had an eventful session, with homebuilder names such as Lennar (LEN 119.25, +9.70, +8.85%) and D.R. Horton (DHI 157.28, +11.38, +7.80%) leading the advance. President Trump ordered Fannie Mae (FNMA 11.01, +0.16, +1.47%) and Freddie Mac (FMCC 10.08, -0.06, -0.59%) to purchase $200 billion in mortgage bonds, reinforcing expectations for increased mortgage-market support. Additionally, the October Housing Starts report (-4.6%) showed single-unit starts up 5.4% month-over-month and at their highest level since July.

The iShares U.S. Home Construction ETF finished 6.3% higher.

Elsewhere in the sector, many retail names such as lululemon athletica (LULU 203.90, -8.27, -3.90%) traded lower today on disappointment that the US Supreme Court did not issue a decision on the legality of President Trump's IEEPA tariffs today, as many hoped it would. The next decision day for the Supreme Court at which a ruling could be announced is next Wednesday. 

Other outperformers include the materials sector (+1.8%), which was supported by a rally in precious metals prices, and the utilities sector (+1.2%), which saw its electric companies boosted after Vistra Corp. (VST 166.40, +15.80, +10.49%) and Meta Platforms (META 653.06, +7.00, +1.08%) entered a power purchase agreement. 

Only the health care sector (-0.6%) and the financials sector (-0.4%), which will see many of its major banking names report earnings next week, finished lower. 

Outside of the S&P 500, the Russell 2000 (+0.8%) and S&P Mid Cap 400 (+0.9%) slightly outperformed their larger-cap counterparts, a trend that has held over the first two weeks of trading this year.

The market is off to a strong start in 2026, with broadening strength driving the major averages to record highs. While next week's inflation data and a pickup in earnings reports will test that momentum, the broader macro backdrop continues to point to an economy supportive of further market growth.

U.S. Treasuries had a mixed finish to the week, with longer tenors showing relative strength while the 2-year note lagged after a December jobs report that was good enough to call the market's rate cut expectations into question. The 2-year note yield settled up five basis points to 3.54% (+6 basis points this week), and the 10-year note yield settled down one basis point to 4.17% (-2 basis points this week). 

• Russell 2000: +5.7% YTD
• S&P Mid Cap 400: +4.7% YTD
• DJIA: +3.0% YTD
• Nasdaq Composite: +1.9% YTD
• S&P 500: +1.8% YTD

Reviewing today's data:

• December Nonfarm Payrolls 50K (Briefing.com consensus 55K); Prior was revised to 56K from 64K, December Nonfarm Private Payrolls 37K (Briefing.com consensus 50K); Prior was revised to 50K from 69K, December Unemployment Rate 4.4% (Briefing.com consensus 4.5%); Prior was revised to 4.5% from 4.6%, December Average Hourly Earnings 0.3% (Briefing.com consensus 0.3%); Prior was revised to 0.2% from 0.1%, December Average Workweek 34.2 (Briefing.com consensus 34.3); Prior 34.3
  • Granted, the employment situation could be better, but the key takeaway is that the low unemployment rate will temper concerns that consumer spending and the economy will slow rapidly due to a weak labor market. It will also likely keep the Fed's next rate cut at bay.
• September Housing Starts 1.306 mln (Briefing.com consensus 1.320 mln); Prior was revised to 1.291 mln from 1.307 mln, September Building Permits 1.415 mln (Briefing.com consensus 1.340 mln); Prior was revised to 1.330 mln from 1.312 mln
• October Housing Starts 1.246 mln (Briefing.com consensus 1.340 mln); Prior 1.306 mln, October Building Permits 1.412 mln (Briefing.com consensus 1.355 mln); Prior 1.415 mln
  • The key takeaway from the report is that the weakness in starts was driven entirely by multi-family units. Single-unit starts were up 5.4% month-over-month and at their highest level since July.
• January Univ. of Michigan Consumer Sentiment - Prelim 54.0 (Briefing.com consensus 53.0); Prior 52.9
  • The key takeaway from the report is that consumer sentiment, while improved a bit, is still guarded due to lingering concerns about high prices and softening labor markets.