Yahoo Finance·2026-01-07 23:50Market Overview - US stock futures declined as investors prepared for labor data updates and reacted to President Trump's comments on defense spending and Venezuela [1][3] - Nasdaq 100 futures fell by 0.3%, S&P 500 futures decreased by 0.2%, and Dow Jones Industrial Average futures dropped by 0.4% [1] Defense Sector - Defense stocks rebounded after Trump announced plans to increase military spending by over 50% to $1.5 billion annually, funded by tariff proceeds [2][7] - Northrop Grumman and Lockheed Martin saw stock increases of approximately 7% following the announcement, recovering from previous declines [2][8] - RTX and General Dynamics also experienced stock gains of 4% and 5%, respectively, as investor sentiment improved [9] Labor Market Updates - Markets are cautiously awaiting labor market updates, including JOLTS job openings and weekly initial jobless claims, amid signs of slowing private payrolls [3] - The upcoming jobs report for December is critical for Federal Reserve policy decisions [3] Geopolitical Factors - Trump's comments on Venezuela included the potential for the US to oversee the country's oil revenue, raising investor interest in the energy sector [4][11] - US oil companies expressed the need for guarantees from the government before investing in Venezuela, despite Trump's encouragement [11][12] Copper Market - S&P Global forecasts a significant copper shortage driven by increased demand from AI and defense spending, predicting a 50% rise in global demand by 2040 [14][17] - Demand from sectors like data centers and AI infrastructure is expected to surge, potentially tripling by 2040 [16][18] Technology Sector - Alphabet surpassed Apple in market capitalization for the first time since 2019, closing at approximately $3.88 trillion compared to Apple's $3.84 trillion [21][22] - Alphabet's stock rose over 2%, while Apple faced a decline of 4.7% over the past five days, highlighting differing positions in the AI landscape [22][23]