January 12, 2026
S&P futures off 0.6% in Monday morning trading after U.S. equities finished strongly higher in the first full week of 2026, with all major indexes up >1.5% and small caps leading (Russell 2000 +4.5%+). Overnight, Asian markets were higher with Greater China outperforming, while Europe slipped ~0.3%. Treasuries sold off, with long-end yields up 3–5 bp and 10s hovering near the 4.20% level. The dollar fell 0.3%, gold rose 2.2%, silver jumped 6%, Bitcoin futures dipped 0.4%, and WTI crude eased 0.4%.
A risk-off tone developed around concerns over Fed independence, after Chair Powell confirmed the Fed received DOJ subpoenas tied to congressional testimony on HQ renovations. Markets also digested an expanded White House affordability push, including Trump’s call for a one-year 10% cap on credit card interest rates, reinforcing Main Street vs. Wall Street and state-intervention themes.
Geopolitical risk remains elevated, with growing protests in Iran, Trump comments about potential U.S. options (briefing expected Tuesday), possible new Russia sanctions, and ongoing Greenland-related diplomacy. Despite today’s pullback, pro-cyclical rotation and market broadening remain a dominant early-2026 narrative. The week ahead is heavy with catalysts, including the start of Q4 earnings, December CPI, extensive Fed speak, and a possible SCOTUS ruling on IEEPA tariffs midweek.
No U.S. economic data are scheduled this morning. Treasury auctions include $58B of 3Y and $39B of 10Y today. CPI and NFIB optimism arrive Tuesday, followed by a full slate of data, auctions, and Fed speakers through week’s end.
Stock-Level Highlights
- Credit Cards: COF, SYF, AXP fell sharply on Trump’s proposal to cap credit card rates; V and MA also traded lower, while some BNPL names (e.g., AFRM) saw relative strength.
- Pharma / M&A: LLY reportedly exploring an acquisition of France’s Abivax for ~$17.5B.
- Retail / Consumer: AMZN planning a new big-box store in the Chicago area; WMT to join the Nasdaq 100 on Jan 20, replacing AZN.
- Tech / Ads: GOOGL rolling out more personalized advertising within AI-driven shopping tools.
- Energy: Trump said he is leaning toward excluding XOM from Venezuela redevelopment efforts; Energy Secretary indicated CVX sees a path to boosting Venezuelan production by ~50%.
- MedTech: EW will not proceed with its planned acquisition of JenaValve Technology due to regulatory opposition.
- Media: Reports suggested PSKY is taking a longer-term approach regarding WBD.
- Consumer / Specialty Retail: BOOT preannounced a strong Q3 and said Q4 has started well.
U.S. equities advanced on Friday (Dow +0.48% | S&P 500 +0.65% | Nasdaq +0.81% | Russell 2000 +0.78%), ending just off session highs and closing the S&P 500 at a fresh record while the Nasdaq finished within roughly 1% of its own all-time high. The gains capped a third positive week in the past four, supported by earnings optimism, durable growth narratives, and policy-driven tailwinds, alongside continued signs of market broadening and pro-cyclical rotation.
Mega-cap technology stocks were uniformly higher, with Tesla leading the group, while high-beta, momentum, and retail-favorite names also outperformed. Cyclically sensitive areas such as homebuilders, building products, energy, industrial metals, airlines, logistics, and capital goods saw broad strength. By contrast, software, networking equipment, select China tech, hospitals, and managed-care stocks lagged.
The macro backdrop remained mixed but constructive. December nonfarm payrolls rose by 50K, modestly below expectations, though the unemployment rate fell to 4.4%, and wage growth was in line. Data reinforced the prevailing “no-hire, no-fire” labor-market narrative. Michigan consumer sentiment improved modestly but remained historically low, while housing data were uneven across months. Following the data, markets repriced modestly toward a more hawkish Fed, with roughly 50 bp of cuts priced through year-end.
The Supreme Court did not issue a ruling on IEEPA tariffs, though expectations remain that existing tariffs will be struck down, with the administration signaling alternative authorities if needed. Geopolitical tensions appeared somewhat cooler around Venezuela but remain elevated across multiple fronts, including Iran, Ukraine/Russia, Mexico, Greenland, and East Asia.
In other markets, Treasuries flattened, with front-end yields up ~5 bp. The dollar index rose 0.2%, while the yen drew attention on reports of a potential Japanese snap election. Gold gained 0.9%, silver jumped 5.6%, and WTI crude rose 2.4%. Bitcoin futures slipped 0.5%.
Sector Highlights
Sector performance reflected a continued rotation toward cyclicals and real-asset exposure, though gains were broadly distributed. Materials (+1.80%) led, supported by strength in copper and aluminum producers, followed by Utilities (+1.24%), Consumer Discretionary (+1.14%), Industrials (+1.11%), and Consumer Staples (+1.09%). Technology (+0.98%) and Communication Services (+0.75%) advanced alongside mega-cap strength. Health Care (−0.58%) lagged due to biotech and managed-care weakness, while Financials (+0.35%), Energy (+0.36%), and Real Estate (+0.19%) posted more modest gains. Overall, the session reinforced the theme of broadening participation beyond the largest index constituents as markets closed the week on a firm footing.
Energy
- Vistra (VST) +10.5% — Announced 20-year PPAs to supply more than 2.6 GW of zero-carbon power supporting Meta Platforms data-center operations.
- Oklo (OKLO) +7.9% — Reached agreement with Meta to support a 1.2-GW nuclear-powered data-center campus in Ohio.
- Constellation Energy (CEG) +6.2% — Initiated at Buy by Truist; Calpine integration cited as a catalyst for incremental power-contract wins.
Industrials
- Lockheed Martin (LMT) +4.7% — Upgraded to Buy at Truist; analysts highlighted valuation support and expanding missile-system capacity.
- Cleveland-Cliffs (CLF) +4.1% — Upgraded at Morgan Stanley on strategic optionality and POSCO partnership potential.
- Generac (GNRC) +2.7% — Upgraded at Baird on improving margin outlook and multiple product catalysts.
Financials
- Rocket Companies (RKT) +9.7% — Surged after Trump urged Fannie Mae and Freddie Mac to purchase $200B of mortgage bonds, supporting housing affordability.
- Altria (MO) +2.9% — Upgraded at UBS on valuation appeal and expectations for earnings acceleration.
Information Technology
- Taiwan Semiconductor Manufacturing Company (TSM) — Reported December-quarter revenue up roughly 20% y/y, beating expectations.
- Intel (INTC) — Shares supported by favorable comments from President Trump.
- Qualcomm (QCOM) −2.3% — Downgraded at Mizuho on handset exposure and global unit-volume concerns.
- Adobe (ADBE) −1.5% — Downgraded at BMO on a challenging application-software demand backdrop.
Health Care
- Insmed (INSM) +3.4% — Raised FY25 revenue outlook meaningfully above consensus on strong Arikayce performance.
- Novo Nordisk (NVO) +2.6% — Benefited after Amazon announced expanded access to its oral Wegovy via Amazon Pharmacy.
- Pacira BioSciences (PCRX) −9.6% — Guided FY25 revenue below Street expectations.
- AbbVie (ABBV) — Lagged after confirming it is not in acquisition talks for Revolution Medicines.
Consumer Discretionary
- SolarEdge Technologies (SEDG) +8.7% — Upgraded at TD Cowen on execution progress and margin recovery prospects.
- Mattel (MAT) −3.1% — Downgraded at Goldman Sachs on macro and tariff-related demand risks.
- WD-40 (WDFC) −6.6% — Fell after a Q1 earnings miss tied to destocking and order timing.
- General Motors (GM) −2.7% — Announced ~$7B in Q4 charges related to EV wind-down and China restructuring.
Communication Services
- Meta Platforms (META) — Central to multiple power and nuclear-energy agreements supporting long-term data-center expansion.
Eco Data Releases | Monday January 12th, 2026
S&P 500 Constituent Earnings Announcements | Monday January 12th, 2026
No constituents report today
Data sourced from FactSet Research Systems Inc.
