Weekend Market Report-1/10/25-It Was A Crazy Busy Week of Macro and We Survived

Market Overview - The first full trading week of 2026 saw a strong rebound in U.S. stocks, with major indexes closing at or near record highs despite geopolitical tensions and mixed economic signals [2] - Major benchmarks ended the week higher, with the Dow Jones up 2.3% to close at 49,504.07, S&P 500 up 1.6% to 6,966.28, and Nasdaq Composite up 1.9% to 23,671.35 [3] Economic Indicators - A softer-than-expected December jobs report indicated fewer jobs added but a decrease in unemployment to 4.4%, reinforcing expectations for Federal Reserve rate cuts later in the year [4] - Economic data provided a mixed but dovish signal, keeping hopes for rate cuts alive [9] Sector Performance - There was a notable rotation from overextended tech/growth stocks to cyclical and value-oriented sectors, with materials and industrials leading gains [4] - Utilities and housing-related stocks surged, with homebuilders like D.R. Horton, PulteGroup, and Lennar seeing significant increases of 7.8%, 7.3%, and 8.8% respectively, following President Trump's directive on mortgage bond purchases [5] - Energy stocks experienced volatility but ended positively, with oil prices (WTI and Brent) rising over 3% amid supply concerns from Venezuela, Russia, Iraq, and Iran [5] Corporate Developments - Semiconductors showed mixed performance, with Intel surging nearly 11% after positive remarks from President Trump, while some AI-related stocks faced pressure [7] - Home improvement and power/utilities sectors showed strength, with companies like Home Depot and Vistra gaining significantly [10] Geopolitical Context - The geopolitical spotlight on Venezuela initially boosted defense and energy sectors, but markets quickly priced in the event as contained [7] - Ongoing anti-government protests in Iran have led to significant unrest, impacting communications and public services [8]