On January 2, 2026, major U.S. stock indices faced mixed results, with the S&P 500 Index down 0.05%, the Dow Jones Industrial Average up 0.23%, and the Nasdaq Composite down 0.28%. The decline in stock prices was influenced by weaker performance from megacap technology stocks and rising bond yields, with the 10-year T-note yield reaching 4.19%, a 1.5-week high.
The Dec S&P manufacturing PMI in the U.S. remained unchanged at 51.8, aligning with expectations. Meanwhile, European markets posted gains, highlighted by the Euro Stoxx 50 reaching a record high, up 0.77%. Notably, chipmakers and AI infrastructure stocks showed strength, with Sandisk surging over 12% as the top gainer in the S&P 500.
Insurance stocks, however, faced pressure, with Progressive down more than 7%. In the cryptocurrency sector, Bitcoin saw a slight increase of over 1%, positively impacting related stocks such as Riot Platforms, up over 9%. As of today, there is a 15% chance of a -25 basis point rate cut by the Federal Reserve in its upcoming meeting on January 27-28.
