U.S. stock indexes opened higher on January 5. The S&P 500 rose about +0.74%, while the Dow Jones climbed above 49,000 for the first time ever, DKNews.kz reports.
The move was supported mainly by energy and defense stocks, which advanced after reports of a U.S. military strike that led to the capture of Venezuela’s President Nicolás Maduro.
Defense and energy sectors move toward records
U.S. defense companies moved to new highs, as investors price in stronger demand for weapons, technology and infrastructure contracts.
Energy companies also gained - markets expect potential opportunities tied to rebuilding Venezuela’s oil infrastructure.
Financial stocks helped push the Dow above the 49,000 mark.
All eyes on the jobs report
One of the key events this week will be Friday’s nonfarm payrolls report.
It could influence the Federal Reserve’s monetary policy path in 2026.
According to LSEG, markets currently expect:
- rate cuts totaling around 60 basis points this year
At the same time, fresh data revealed pockets of weakness in the economy.
Manufacturing continues to contract
In December, U.S. manufacturing fell more than expected.
- the ISM Manufacturing index slipped to 47.9%
- down from 48.2% in November
This marks the tenth consecutive month of contraction.
Key drivers:
- weaker orders
- tariff pressures
- softer business activity
Bonds and the dollar react calmly
Following the data:
- U.S. Treasury yields edged slightly lower
- the U.S. dollar trimmed gains
Markets are moving cautiously, waiting for Friday’s numbers and any signals from the Fed.
Markets are rising, but:
- the economy is sending mixed signals
- jobs data will be crucial
- Fed policy remains the main reference point for Wall Street
