2026 01/05 - 01/09. Wall Street hits record highs with a strong labor market and AI innovations drive sector rotation amid geopolitical changes

This week’s edition of Wall Street Week highlights the first complete week of financial trading in 2026, during which major indices soared to unprecedented record highs. The remarkable performance in the markets was driven by a strong labor market report, groundbreaking advancements in AI technology showcased at CES, and significant geopolitical changes affecting global oil supplies.Investors engaged in a noteworthy sector rotation, shifting their focus from the high-growth technology sector to more cyclical areas such as energy, defense, and housing, spurred by new government policy proposals.At the same time, the commodity markets experienced a substantial rebalancing, which led to increased volatility in precious metals, while industrial metals remained relatively stable.The week wrapped up with a narrative of a soft landing for the economy, as market participants braced themselves for the upcoming fourth-quarter earnings season and key inflation data.|---|* S&P.* 01/05 Mo 6,902.05* 01/06 Tu 6,944.82* 01/07 We 6,920.93* 01/08 Th 6,921.46* 01/09 Fr 6,966.28|---|* Nasdaq.* 01/05 Mo 23,395.82* 01/06 Tu 23,547.17* 01/07 We 23,584.28* 01/08 Th 23,480.02* 01/09 Fr 23,671.35|---|* DJI.* 01/05 Mo 48,977.18* 01/06 Tu 49,462.08* 01/07 We 48,996.08* 01/08 Th 49,266.11* 01/09 Fr 49,504.07|------------------|* 2-yr T Bond %.* 01/05 Mo 3.455* 01/06 Tu 3.473* 01/07 We 3.469* 01/08 Th 3.488* 01/09 Fr 3.540|---|* 10-yr T Bond %.* 01/05 Mo 4.163* 01/06 Tu 4.179* 01/07 We 4.138* 01/08 Th 4.183* 01/09 Fr 4.171|------------------|* S&P ROC %.* 01/05 Mo 0.635* 01/06 Tu 0.620* 01/07 We -0.344* 01/08 Th 0.008* 01/09 Fr 0.648|---|* VIX.* 01/05 Mo 14.90* 01/06 Tu 14.75* 01/07 We 15.38* 01/08 Th 15.45* 01/09 Fr 14.49|------------------|* BCOMENTR.* 01/05 Mo 62.9060* 01/06 Tu 61.7306* 01/07 We 61.6379* 01/08 Th 62.3583* 01/09 Fr 62.2428|---|* BCOMINTR.* 01/05 Mo 426.18* 01/06 Tu 437.22* 01/07 We 425.89* 01/08 Th 420.68* 01/09 Fr 428.00|---|* SPGSAG.* 01/05 Mo 355.98* 01/06 Tu 356.86* 01/07 We 359.87* 01/08 Th 359.21* 01/09 Fr 355.16|---|* SPGSPM.* 01/05 Mo 6,007.20* 01/06 Tu 6,101.60* 01/07 We 6,029.30* 01/08 Th 6,011.62* 01/09 Fr 6,107.28|------------------|* WTI Crude Oil.* 01/05 Mo 58.32* 01/06 Tu 57.13 |* 01/07 We 55.99* 01/08 Th 57.76* 01/09 Fr 59.12|---|* Key Economic Events & Data Releases.* Monday, January 12th, 10-Year Note Auction.* Tuesday, January 13th, December Consumer Price Index (CPI).* Wedneday, January 14th, November Producer Price Index (PPI).* Wednesday, January 14th, November Retail Sales.* Thursday, January 15th, Empire State & Philly Fed Mfg.* Friday, January 16th, December Industrial Production.|---|* Major Earnings Releases.* Monday, January 12th, No major earnings releases.* Tuesday, January 13th, JPMorgan Chase (JPM), Citigroup (C).* Wednesday, January 14th, Bank of America (BAC), Wells Fargo (WFC).* Thursday, January 15th, Taiwan Semi (TSM), BlackRock (BLK), Netflix (NFLX).* Friday, January 16th, Goldman Sachs (GS), Morgan Stanley (MS).|---|The complete audio transcript will be accessible at the following link: https://wallstreetweek.substack.com/ when it becomes available.