(Jan 8): Wall Street’s enthusiasm for US stocks was put to the test as investors took stock of a shifting risk landscape and digested mixed economic data. Yields fell across the globe.
The S&P 500 Index struggled for direction after notching its second intraday record of 2026 on Wednesday. The Nasdaq 100 climbed 0.1%. Valero Energy Corp led shares of refiners higher after President Donald Trump said Venezuela would turn over millions of barrels to the US.
US services activity expanded in December at the fastest pace in more than a year, fuelled by solid demand growth and a pickup in hiring, dampening a rally in US Treasuries. Earlier data from ADP Research showed hiring in December rose at a moderate pace, pointing to sluggish momentum heading into 2026. The yield on 10-year notes fell two basis points to 4.15%, with rates also moving lower across most of Europe.
Stocks have been on a tear on optimism over solid earnings growth and inflation remaining sufficiently contained for the Federal Reserve to keep cutting interest rates. That optimism has persisted despite a worsening geopolitical backdrop, including US actions in Venezuela, its threats of intervention elsewhere and rising tensions between China and Japan.
“Shifting trends create uncertainties that need to be priced into assets,” said Florian Ielpo, head of macro and multi-asset at Lombard Odier. “We are talking about a breathing period, with investors taking time to rethink how to deploy their concentrated equity investments in a deconcentrating world.”
See also: Goldman sees US consumer powering wider equity rally in 2026
The ADP figures kicked off three key days of economic data as investors track the Fed’s likely path for rates.
Precious metals pulled back, with silver falling below US$80 an ounce and gold breaking a three-day winning streak. Copper retreated from an all-time high.
Venezuela’s oil
See also: US bull run stalls after Trump tirade; bonds up
Oil extended losses after Washington moved to exert greater control over Venezuela’s industry. The US European Command said US forces seized a Venezuela-linked, Russia-flagged ship in the north Atlantic. West Texas Intermediate traded below US$57 a barrel.
Investors were also keeping tabs on the primary bond market as the first week of 2026 saw a surge in global issuance, signalling strong confidence despite heightened geopolitical risks.
Issuance in the US investment-grade bond market topped US$72 billion in the first two days of the week, the busiest back-to-back sessions on record, according to data compiled by Bloomberg. European borrowers brought a record number of tranches to the market on Wednesday and are set to raise €57.2 billion (US$66.7 billion), a number that’s likely to increase over the course of the day.
Some of the main moves in markets:
Stocks
- The S&P 500 was little changed as of 10.09am New York time
- The Nasdaq 100 rose 0.1%
- The Dow Jones Industrial Average fell 0.3%
- The Stoxx Europe 600 fell 0.2%
- The MSCI World Index fell 0.1%
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Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at US$1.1696
- The British pound was little changed at US$1.3496
- The Japanese yen was little changed at 156.51 per dollar
Cryptocurrencies
- Bitcoin fell 1.7% to US$91,613.35
- Ether fell 3.3% to US$3,165.94
Bonds
- The yield on 10-year Treasuries declined two basis points to 4.15%
- Germany’s 10-year yield declined three basis points to 2.82%
- Britain’s 10-year yield declined six basis points to 4.42%
Commodities
- West Texas Intermediate crude fell 1.3% to US$56.41 a barrel
- Spot gold fell 1.2% to US$4,443.08 an ounce
Uploaded by Felyx Teoh
