On January 7, 2026, the US stock markets had a mixed performance with the tech-heavy Nasdaq Composite emerging as the only index in the green, appreciating by 0.16% to close at 23,584.28. Meanwhile, both the S&P 500 and the Dow Jones Industrial Average faced declines of 0.34% and 0.94%, settling at 6,920.93 and 48,996.08 respectively.
Today's trading was influenced significantly by mixed economic data released earlier in the day. The ISM Services PMI for December recorded a positive expansion at 54.4, surpassing economists' expectations of 52.2. However, the JOLTS report revealed that job openings for November decreased to 7.1 million, falling short of the anticipated 7.6 million.
The decline in the Dow and S&P 500 can be attributed to comments made by President Trump regarding defense contractors, where he stated that dividends and stock buybacks would be prohibited until these companies improved their production capabilities. As a result, shares of major defense players like General Dynamics (GD), Lockheed Martin (LMT), and Northrop Grumman (NOC) saw significant declines, reflecting investor concern over potential regulatory impacts.
The market sentiment was also affected by developments related to Venezuelan oil. Following President Trump's announcement that Venezuela would relinquish up to 50 million barrels of crude oil to the US, crude oil futures fell, impacting investor outlook for energy sector equities.
In notable company news, GameStop (GME) stock surged approximately 5% after the announcement of a performance-based compensation plan for CEO Ryan Cohen, linked to ambitious growth targets for the company. Conversely, shares of Blackstone (BX) plummeted by more than 5% after Trump indicated his intention to implement a ban on institutional investors purchasing single-family homes.
Investor sentiment remains cautious heading into the upcoming December jobs report, which is highly anticipated by the Federal Reserve for indications on economic stability and potential policy adjustments. The interplay between labor market data and consumer confidence continues to be a focal point for analysts.