On January 8, 2026, the S&P 500 Index is down 0.15%, while the Dow Jones Industrial Average rises 0.16%, and the Nasdaq 100 Index declines by 0.67%. March E-mini S&P futures are down 0.16%, and March E-mini Nasdaq futures are down 0.75%. This market movement is primarily attributed to profit-taking in chipmakers and software firms following a solid start to the year, although defense stocks gain traction after President Trump announced plans to increase military spending by $1.5 trillion next year.
Key economic indicators show that U.S. December Challenger job cuts fell to 35,553, an 8.3% year-over-year decrease, marking a 17-month low, while weekly jobless claims increased by 8,000 to 208,000, which is still better than expectations. Q3 nonfarm productivity experienced a 4.9% rise, close to the expected 5.0%, and unit labor costs decreased by 1.9%. Additionally, the U.S. October trade deficit unexpectedly shrank to $29.4 billion, far better than the anticipated widening to $58.7 billion, marking the smallest deficit in 16 years.
In the bond market, the 10-year T-note yield increased by 4 basis points to 4.18% amid rising labor market strength signals, putting initial pressure on stocks. European markets reflected similar trends, with the Euro Stoxx 50 down 0.22% and Japan’s Nikkei 225 closing down 1.63%.
