Stock Market Update: Dow Rises as Tech Stocks Slide

Jan 9, 2026, 2:45 AM

Hover over text to view sources

On January 8, the US stock market closed with mixed results, as the Dow Jones Industrial Average rose by approximately 0.5%, while both the S&P 500 and Nasdaq Composite saw declines of around 0.1% to 0.4% respectively. This market behavior reflects a notable rotation out of technology stocks and into defense shares, influenced by recent political developments and labor market data.

The rise in the Dow was primarily supported by gains in non-tech sectors, particularly defense, industrials, and financials. Defense stocks surged after President Trump announced plans to increase military spending by 50%, raising expectations for future defense budgets. Companies like Northrop Grumman and Lockheed Martin saw their shares jump as much as 8% before settling down later in the day.

In contrast, the Nasdaq Composite, which is heavily weighted towards technology, experienced its first loss of the week. Major tech companies, including Nvidia, Apple, and Meta, faced selling pressure as investors took profits following a strong early-year rally. This shift indicates a cautious approach among investors, who are reassessing their positions in light of softer labor market data and changing interest rate expectations from the Federal Reserve.

The S&P 500 remained relatively stable but was pulled down by losses in large tech stocks and some rate-sensitive sectors. The mixed performance of the index suggests that while some sectors are thriving, others are struggling to maintain momentum amid fluctuating economic indicators.

Investors are closely monitoring upcoming labor market reports, particularly the December jobs report set to be released soon. Recent updates from Challenger, Gray & Christmas indicated a positive sign for the jobs market, with planned layoffs hitting their lowest level in December 2025. This data is crucial as it may influence the Federal Reserve's policy decisions moving forward.

Geopolitical factors also played a role in market dynamics, particularly concerning US strategies in Venezuela. Trump’s comments about potentially overseeing Venezuela's oil revenue have kept traders on edge, contributing to fluctuations in oil prices. Crude oil prices rose nearly 2% amid ongoing uncertainties surrounding Venezuelan production, which remains significantly lower than historical levels.

Overall, the stock market's mixed performance on January 8 reflects a complex interplay of sector-specific news, labor market data, and geopolitical developments. As investors navigate these factors, the focus will remain on upcoming economic reports and their implications for market direction in the near term.

US Stock Market Rises as Dow Hits Record High

US stocks reached new record highs on Tuesday, with the Dow Jones Industrial Average closing above 49,000 for the first time. The S&P 500 and Nasdaq also saw gains, driven by developments in the tech sector and anticipation of upcoming economic data.

Chip Stocks Surge on AI Optimism; Dow Hits Record High

US stock markets closed higher, driven by a surge in chip stocks amid renewed optimism for AI technologies. The Dow Jones Industrial Average reached a record high, while investors anticipated upcoming economic data following a prolonged government shutdown.

AI-Led Growth Masks Debt and Inequality in the Economy

The rapid growth of the AI sector is creating a misleading narrative about the US economy, which is increasingly characterized by debt and inequality. While AI investments contribute to economic expansion, they also exacerbate existing disparities and rely heavily on a system of cheap credit that benefits a select few.

Stock Market Today, Jan. 6: Dow Jones Hits Record High

On January 6, the Dow Jones Industrial Average reached a record high of 49,462.08, driven by a continued rally in technology stocks. The S&P 500 and Nasdaq also saw gains, reflecting strong investor sentiment and optimism surrounding AI-driven demand.

AI's Investment Journey: From Date to Bill in 2026

In 2025, AI captivated investors, leading to significant market gains. However, as the technology matures in 2026, analysts warn of potential risks and the need for diversified portfolios, especially given the heavy reliance on a few tech giants.