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Wall Street closed mixed on Thursday, pulled down by tech stocks. While oil prices jumped on supply concerns and geopolitical developments, the defense sector rallied on optimism around a proposed higher U.S. military budget. One of the three benchmark indexes finished in the red, one ended in the green, while one remained virtually unchanged.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.6%, or 270.03 points, to close at 49,266.11. Twenty components of the 30-stock index ended in positive territory, while 10 ended in the negative.
The tech-heavy Nasdaq Composite lost 104.26 points, or 0.4%, to close at 23,480.02.
The S&P 500 added 0.53 points to remain virtually unchanged at 6,921.46. Nine of the 11 broad sectors of the benchmark index closed in the green. The Energy Select Sector SPDR (XLE), the Consumer Staples Select Sector SPDR (XLP) and the Consumer Discretionary Select Sector SPDR (XLY) rose 3.2%, 2.3% and 1.7%, respectively, while the Technology Select Sector SPDR (XLK) receded 1.5%.
The fear gauge CBOE Volatility Index (VIX) increased 0.46% to 15.45. A total of 16.9 billion shares were traded on Thursday, higher than the last 20-session average of 16.3 billion. Advancers outnumbered decliners by a 2.4-to-1 ratio on the S&P 500.
Tech Stocks Drag Wall Street Lower on Thursday
Technology shares weighed on Wall Street on Jan. 8 as investors turned cautious after the sector’s strong recent run, prompting profit-taking in high-valuation growth names. The pullback came amid lingering uncertainty over the interest-rate outlook, with Treasury yields staying elevated and markets positioning ahead of key U.S. economic data, particularly the jobs report.
Higher yields tend to weigh on tech stocks because their future earnings are more sensitive to borrowing costs and discount rates. In addition, optimism around artificial intelligence and growth themes showed signs of cooling, leading investors to rotate toward more defensive and value-oriented sectors. This combination of valuation concerns, rate sensitivity and pre-data caution pushed technology stocks lower, offsetting gains elsewhere and contributing to Wall Street’s mixed finish for the session.
President Trump’s proposal to boost the U.S. military budget to around $1.5 trillion in 2027 gave defense stocks a strong lift in the session, as investors anticipated larger future government contracts and spending in the sector. This policy shift outweighed earlier concerns about restrictions on dividends and buybacks, prompting renewed confidence in aerospace and defense names.
Geopolitical tensions and expectations of sustained government demand for defense equipment also supported the rally, making the sector one of the few bright spots on an otherwise cautious trading day.
Oil Jumps to Two-Week High on Supply Fears
Oil prices increased more than 3% on Thursday, rebounding after two straight days of losses as supply concerns resurfaced. Brent crude rose 3.4% at $61.99/barrel, while WTI crude jumped 3.2% to $57.76. Markets reacted to developments in Venezuela and rising worries over potential disruptions from Russia, Iraq and Iran amid escalating U.S. actions affecting Venezuelan oil flows.
Economic Data
For the week ending Jan. 3, initial claims came in at 208,000, an increase of 8,000 from the previous week's revised level. The prior week's level was revised up by 1,000 from 199,000 to 200,000. The four-week moving average was 211,750, a decrease of 7,250 from the previous week's revised average. This is the lowest level for this average since April 27, 2024, when it was 210,250. The previous week's average was revised up by 250 from 218,750 to 219,000.
Continuing claims for the week ending Dec. 27 were 1,914,000, an increase of 56,000 from the previous week's revised level. The prior week's level was revised down by 8,000 from 1,866,000 to 1,858,000. The four-week moving average was 1,892,750, an increase of 21,000 from the previous week's revised average. The prior week's average was revised down by 1,750 from 1,873,500 to 1,871,750.
The U.S. Census Bureau reported that wholesale inventories had increased 0.2% in October, after rising 0.5% in September.
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Stock Market News for Jan 9, 2026
Wall Street closed mixed on Thursday, pulled down by tech stocks. While oil prices jumped on supply concerns and geopolitical developments, the defense sector rallied on optimism around a proposed higher U.S. military budget. One of the three benchmark indexes finished in the red, one ended in the green, while one remained virtually unchanged.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.6%, or 270.03 points, to close at 49,266.11. Twenty components of the 30-stock index ended in positive territory, while 10 ended in the negative.
The tech-heavy Nasdaq Composite lost 104.26 points, or 0.4%, to close at 23,480.02.
The S&P 500 added 0.53 points to remain virtually unchanged at 6,921.46. Nine of the 11 broad sectors of the benchmark index closed in the green. The Energy Select Sector SPDR (XLE), the Consumer Staples Select Sector SPDR (XLP) and the Consumer Discretionary Select Sector SPDR (XLY) rose 3.2%, 2.3% and 1.7%, respectively, while the Technology Select Sector SPDR (XLK) receded 1.5%.
The fear gauge CBOE Volatility Index (VIX) increased 0.46% to 15.45. A total of 16.9 billion shares were traded on Thursday, higher than the last 20-session average of 16.3 billion. Advancers outnumbered decliners by a 2.4-to-1 ratio on the S&P 500.
Tech Stocks Drag Wall Street Lower on Thursday
Technology shares weighed on Wall Street on Jan. 8 as investors turned cautious after the sector’s strong recent run, prompting profit-taking in high-valuation growth names. The pullback came amid lingering uncertainty over the interest-rate outlook, with Treasury yields staying elevated and markets positioning ahead of key U.S. economic data, particularly the jobs report.
Higher yields tend to weigh on tech stocks because their future earnings are more sensitive to borrowing costs and discount rates. In addition, optimism around artificial intelligence and growth themes showed signs of cooling, leading investors to rotate toward more defensive and value-oriented sectors. This combination of valuation concerns, rate sensitivity and pre-data caution pushed technology stocks lower, offsetting gains elsewhere and contributing to Wall Street’s mixed finish for the session.
Consequently, shares of Broadcom Inc. (AVGO - Free Report) and NVIDIA Corporation (NVDA - Free Report) fell 3.2% and 2.2%, respectively. While AVGO currently carries a Zacks Rank #3 (Hold), NVDA sports a #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Defense Stocks Rally on Budget Optimism
President Trump’s proposal to boost the U.S. military budget to around $1.5 trillion in 2027 gave defense stocks a strong lift in the session, as investors anticipated larger future government contracts and spending in the sector. This policy shift outweighed earlier concerns about restrictions on dividends and buybacks, prompting renewed confidence in aerospace and defense names.
Geopolitical tensions and expectations of sustained government demand for defense equipment also supported the rally, making the sector one of the few bright spots on an otherwise cautious trading day.
Oil Jumps to Two-Week High on Supply Fears
Oil prices increased more than 3% on Thursday, rebounding after two straight days of losses as supply concerns resurfaced. Brent crude rose 3.4% at $61.99/barrel, while WTI crude jumped 3.2% to $57.76. Markets reacted to developments in Venezuela and rising worries over potential disruptions from Russia, Iraq and Iran amid escalating U.S. actions affecting Venezuelan oil flows.
Economic Data
For the week ending Jan. 3, initial claims came in at 208,000, an increase of 8,000 from the previous week's revised level. The prior week's level was revised up by 1,000 from 199,000 to 200,000. The four-week moving average was 211,750, a decrease of 7,250 from the previous week's revised average. This is the lowest level for this average since April 27, 2024, when it was 210,250. The previous week's average was revised up by 250 from 218,750 to 219,000.
Continuing claims for the week ending Dec. 27 were 1,914,000, an increase of 56,000 from the previous week's revised level. The prior week's level was revised down by 8,000 from 1,866,000 to 1,858,000. The four-week moving average was 1,892,750, an increase of 21,000 from the previous week's revised average. The prior week's average was revised down by 1,750 from 1,873,500 to 1,871,750.
The U.S. Census Bureau reported that wholesale inventories had increased 0.2% in October, after rising 0.5% in September.