Dow crosses 49,000, S&P 500 jumps to new high in record-setting start to year-amtomessage

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2026-01-07

Dow crosses 49,000, S&P 500 jumps to new high in record-setting start to year

US stocks rose to fresh records on Tuesday as investors continued to weigh US moves on Venezuela and braced for a flurry of fresh data this week to shed light on the health of the economy.

The S&P 500 (^GSPC) added 0.6%, closing at a record high, while the tech-heavy Nasdaq Composite (^IXIC) also rose 0.6%. The Dow Jones Industrial Average (^DJI) climbed 1% to close above 49,000 for the first time as the blue-chip index notched a back-to-back record.

Investors assessed Nvidia (NVDA) and AMD’s (AMD) competing AI roadmaps, laid out at CES in Las Vegas. CEO Jensen Huang launched Nvidia’s next-generation Vera Rubin AI superchip platform, followed by AMD CEO Lisa Su’s first look at its rival Helios system. Eyes were also on new PC chips from Intel (INTC) and Qualcomm (QCOM), with updates from other tech stalwarts expected as the marquee tech event continues this week.

Notable gainers in the tech space on Tuesday included Amazon (AMZN), Micron (MU), and Broadcom (AVGO).

Meanwhile, the focus is starting to turn to a flurry of jobs market and other data this week, as the flow of economic reports gets back on track. On Tuesday, the final reading of S&P Global’s Services PMI for the month of December showed the US services sector growing at its slowest pace in eight months.

The shutdown-induced dearth of data in recent months has made it trickier to gauge how the Federal Reserve will move on interest rates this year. Chair Jerome Powell has signaled policymakers will tread carefully until the picture of the labor market is clearer. That has made the December jobs report due Friday even more crucial than usual.

In commodities, copper (HG=F) continued to surge after breaking above $13,000 a ton for the first time, hitting a fresh record as worries about potential Trump tariffs spur stockpiles in the US, leaving the rest of the world short.

LIVE 19 updates

3 semiconductor stocks to play the AI supercycle, according to analysts Inbox

Yahoo Finance’s Francisco Velasquez reports:

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Bitcoin and broader crypto markets ‘have bottomed,’ Bernstein analysts say

Yahoo Finance’s Ines Ferré reports:

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Venezuela says it has the world’s largest reserves of crude oil. Making it viable is a whole other problem.

Yahoo Finance’s Jake Conley reports:

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Dow notches a Santa Claus rally, while S&P 500 misses for 3rd year in a row

“If Santa Claus should fail to call, bears may come to Broad and Wall.”

The adage coined by Stock Trader’s Almanac creator Yale Hirsch in 1972 refers to the tendency for stocks to rise in the last five trading days of the year, plus the first two of the new year.

Historically, when stocks record gains during this so-called Santa Claus rally period, which ended Monday, markets enjoy greater returns in January and in the following year. But if stocks fall, investors see diminished returns in the month and year ahead.

In 2026, Santa Claus only came for the Dow Jones Industrial Average, which climbed 1.1% during the seven-day stretch. The S&P 500 lost 0.1% during this period, while the Nasdaq Composite shed 0.7%.

So what does this mean for stocks? According to LPL Financial’s Adam Turnquist, if Santa fails to call, the average January return is -0.1% and the average next year return is 6.1%. This is compared to a 1.4% January return and a 10.4% next-year return, on average, following a Santa Claus rally.

But Turnquist reminds us that “seasonal trends reflect historical tendencies, not guarantees.”

For example, this year marks the third consecutive year that the S&P 500 has seen negative returns during the Santa Claus rally period. Yet the index nonetheless rose 2.7% in January 2025 and over 16% for the year.
Qualcomm stock rises after unveiling PC chip at CES

Qualcomm (QCOM) shares rose nearly 4% in midday trading Tuesday after the chipmaker on Monday unveiled its latest PC chip for Microsoft (MSFT) laptops.

The gain Tuesday extends the previous day’s 2% jump, putting the stock up more than 5% over the past five trading sessions.

Qualcomm’s latest PC chip is part of the company’s broader push to expand beyond making chips for smartphones, as its second-largest customer Apple (AAPL) is shifting toward making key iPhone components internally.

Read more at the link.
Why the stock market is ‘shrugging off’ Venezuelan leader Nicolás Maduro’s capture

On Monday, the stock market largely brushed off the weekend developments that saw the US capture and arrest Venezuela’s Nicolás Maduro.

“The positive response in stocks is fascinating,” Yardeni wrote. “It suggests the markets are not particularly concerned. The market seems to be focusing on the positive consequences — peace through strength. Maybe that’s what markets are rooting for.”

Wall Street is still assessing the fallout from the US incursion into Venezuela. But at least to start, investors are looking past it to focus on the themes that have dominated markets throughout 2025 — and even earlier — with the AI trade returning to rally mode and focus looming on the Federal Reserve and corporate earnings.

Asked how the current climate would impact his holdings, Gabelli Funds portfolio manager John Belton said not much.

“I think that’s why the market is so, quote unquote, shrugging it off — this situation — at least as given what we know today,” he told Yahoo Finance. “Not a big impact on company fundamentals … not a big part of the global economy. I think that it’s pretty straightforward.”

Ben Emons, founder and chief investment officer of FedWatch Advisors, suggested investors may even be treating the moment as a “risk-on” event.

“2026 kicks off as a geopolitical year, which could act as a risk-on catalyst in subsequent periods,” Emons wrote in a note to clients. “It reminds me of 2016, when regime shifts like Brexit and Trump’s first election triggered significant rallies in commodities, emerging markets, and domestic equities.”

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Ford sales jumped 6% last year, powered by hybrids and cheaper entry-level vehicles

Yahoo Finance’s Pras Subramanian reports:

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HVAC stocks fall as Nvidia’s new AI platform could reduce demand for some cooling systems in data centers

HVAC companies Johnson Controls (JCI), Trane Technologies (TT), and Carrier Global (CARR) saw their stocks drop on Tuesday amid investor concerns that Nvidia’s (NVDA) latest Vera Rubin AI systems could potentially reduce data centers’ demand for their offerings.

Commentary from Nvidia CEO Jensen Huang at CES in Las Vegas on Monday suggested that Vera Rubin will use liquid cooling rather than cooling systems offered by traditional HVAC companies — representing a potential headwind for those businesses.

Read more from Investing.com.
S&P US Services PMI shows sector grew at slowest pace in 8 months in December

Fresh economic data on Tuesday showed the US services sector — which employs the majority of Americans — growing at its slowest pace in eight months during December.

S&P Global’s US Services PMI came in at 52.5 in December, below the preliminary reading of 52.9 earlier that month, which was expected to remain unchanged by economists tracked by Bloomberg.

The initial Services PMI reading in mid-December had already shown the index hitting a six-month low, and Tuesday’s reading marked a further slowdown. The index reflects changes in businesses’ costs, employment, and demand. A reading above 50 signals expansion in the services sector, while one below that figure indicates contraction.

“Confidence has been dampened principally by uncertainty over government policy and the broader economic outlook, with tariffs and affordability featuring as common threads throughout companies’ more cautious views on their prospects,” wrote Chris Williamson, chief business economist at S&P Global Market Intelligence.
Stocks muted at the open

US stocks stalled at the market open on Tuesday after broad gains on Monday that saw the Dow Jones Industrial Average (^DJI) surpass 49,000 for the first time.

The Dow was roughly flat following the previous session’s record-setting gain. The S&P 500 (^GSPC) also hovered around the flat line, while the tech-heavy Nasdaq Composite (^IXIC) nudged up 0.3%.

Investors are awaiting fresh economic data, with Tuesday marking the final S&P Global reading on US services activity in December, set for release at 9:45 a.m. ET.
Oklo stock rises another 6% on Energy Department enrichment investment

Oklo (OKLO) stock extended its nearly 15% gain from Monday, rising another 6% in premarket trading, after the US Department of Energy announced a $2.7 billion investment to strengthen domestic uranium enrichment over the next 10 years.

The investment signaled the administration’s focus on nuclear energy, which has been a key development for the unprofitable small nuclear reactor company. Over the past year, Oklo stock has risen 227%.

“Today’s awards show that this Administration is committed to restoring a secure domestic nuclear fuel supply chain capable of producing the nuclear fuels needed to power the reactors of today and the advanced reactors of tomorrow,” Secretary of Energy Chris Wright, who previously served on Oklo’s board of directors, said in a statement.

A House subcommittee on energy also said on Monday it would be holding a hearing on Wednesday to “discuss the licensing, deployment and implementation of recently enacted federal laws and administration policies in nuclear energy.”

Because the Santa Clara-based company is pre-revenue, regulatory milestones and hurdles remain critical to its commercial timelines.
Good morning. Here’s what’s happening today.
Why Big Oil has a long road ahead in Venezuela

US oil major stocks such as ExxonMobil (XOM), ConocoPhillips (COP), and Chevron (CVX), the only US oil company left operating in Venezuela, added to their gains on Tuesday morning after surging on Monday following the capture of Venezuelan leader Nicolás Maduro.

Yahoo Finance’s Jake Conley reports:

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Nvidia’s $4 trillion stock rally faces more threats than ever

Bloomberg reports:

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Premarket trending tickers: Vistra, Novo, Microchip Technology, and Under Armour

Vistra (VST) stock rose 4% premarket on Tuesday following the news it had agreed to buy Cogentrix Energy for $4.7 billion amid surging power demand for AI data centers.

Novo Nordisk (NVO) stock climbed almost 5% before the bell on Tuesday after the company announced on Monday that patients will now be able to purchase the lowest doses of its Wegovy pill for $149 per month in the US starting in April.

Microchip Technology (MCHP) stock rose 4% during premarket trading after the tech company raised its forecasts for third quarter net sales on Monday.

Under Armour (UAA) shares rose almost 3%, after a filing revealed that Fairfax Financial Holdings (FFH.TO) owned just under 42 million shares, representing a 22% stake in the company.
Chinese stocks rally to four-year high in strong start to 2026

China’s major stock markets climbed to multiyear highs on Tuesday as optimism over homegrown AI development continued to build amid signs of economic growth.

The benchmark CSI 300 Index (000300.SS) advanced 1.6% to reach its highest close since January 2022. Meanwhile, the Shanghai Composite Index (000001.SS) rose 1.5% to its strongest level in over a decade, with tech and materials names among best performers.

Asian stocks more broadly are having their best-ever start to a year, with currencies and bonds also making gains as investors hunt out investments beyond the US.

Bloomberg reports:

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AMD CEO Lisa Su reveals plans to take on Nvidia in AI race for 2026

Yahoo Finance’s Daniel Howley reports:

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Copper blasts past $13,000 in record-setting rally

Bloomberg reports:

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Nvidia announces Vera Rubin, the next-generation superchip, at CES 2026

Yahoo Finance’s Daniel Howley reports:

Read more here.