On January 2, 2026, the S&P 500 Index rose by 0.62%, the Dow Jones Industrials Index increased by 0.10%, and the Nasdaq 100 Index gained 1.16%. Key factors driving the market include gains in chip makers and AI-infrastructure stocks, along with overnight strength from European markets, highlighted by the Euro Stoxx 50 reaching a record high.
The 10-year T-note yield climbed to 4.19%, marking a 1.5-week high. The U.S. December S&P manufacturing PMI remained unrevised at 51.8, with current forecasts pricing in a 15% chance for a 25 basis point rate cut at the next FOMC meeting on January 27-28. In overseas markets, the Eurozone’s manufacturing PMI was downgraded to 48.4, while the money supply grew by 3.0% year-on-year.
Chip maker Sandisk saw a significant increase of over 8%, leading the S&P 500, while ASML Holding surged more than 7% on an upgrade from Alethia Capital. Conversely, insurance stocks faced declines, with Progressive falling over 7%. Sable Offshore jumped more than 18% after receiving approval to resume operations off the California coast.
