US Stock Market Rises as Dow Hits Record High

Jan 7, 2026, 2:57 AM

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US stocks rose to fresh records on Tuesday, with the Dow Jones Industrial Average (^DJI) climbing 1% to close above 49,000 for the first time, marking a back-to-back record for the blue-chip index. The S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) both added 0.6%, closing at record highs as well.

Investors were particularly focused on developments in the technology sector, where companies like Nvidia (NVDA) and AMD (AMD) showcased their competing AI roadmaps at CES in Las Vegas. Nvidia's CEO Jensen Huang introduced the next-generation Vera Rubin AI superchip platform, while AMD's CEO Lisa Su presented the Helios system, highlighting the competitive landscape in AI technology. Notable gainers in the tech space included Amazon (AMZN), Micron (MU), and Broadcom (AVGO).

As the week progresses, attention is shifting towards a series of economic reports that are expected to provide insights into the health of the US economy. On Tuesday, the final reading of S&P Global's Services PMI for December indicated that the US services sector is growing at its slowest pace in eight months, raising concerns about economic momentum.

The recent shutdown-induced lack of data has complicated efforts to predict how the Federal Reserve will adjust interest rates in the coming year. Fed Chair Jerome Powell has indicated that policymakers will proceed cautiously until there is a clearer picture of the labor market. This makes the upcoming December jobs report, due on Friday, particularly significant.

In commodities, copper prices surged after breaking above $13,000 a ton for the first time, driven by concerns over potential tariffs and stockpiling in the US, which has left other parts of the world short on supply.

Overall, the stock market's upward trajectory reflects a combination of strong corporate performances, particularly in technology, and investor optimism as they await critical economic data that could influence future market movements.

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