Strong start to 2026
US stocks traded near record levels on Wednesday, continuing their strong start to the New Year. The Dow Jones Industrial Average crossed 49,300 during intraday trade, marking a fresh all-time high. The rally showed steady demand across sectors such as industrials, financials, and technology. The S&P 500 hovered just below the 7,000 mark, while the Nasdaq Composite moved higher after early swings. Market breadth remained positive, with more stocks rising than falling on the New York Stock Exchange. This signaled broad-based strength rather than gains driven by only a few large companies.
Data
Fresh US data helped support markets. The Institute for Supply Management said its services index rose to 54.4 in December, the highest reading of the year. The figure was well above expectations and showed expansion in new orders, exports, and hiring. Price pressures also showed signs of easing. The ISM prices index fell to 64.3, its lowest level since March 2025. Investors saw this as a sign that inflation is slowing without hurting growth, a positive signal for equities. Labor market data showed some cooling. Job openings declined to 7.15 million in November, the lowest level in over a year. Hiring slowed, but an increase in voluntary quits suggested workers still felt confident about job prospects. Private payroll data from ADP showed 41,000 jobs were added in December, slightly below forecasts but higher than November.
Major indexes
By late trading, the Dow slipped 240 points, or 0.49%, to 49,221.89. The S&P 500 edged down 0.10% to 6,937.81. The Nasdaq outperformed, rising 0.13% to 23,578.05. Despite the pullback, all three indexes stayed close to record territory. Analysts said this reflected profit booking rather than a shift in sentiment. Markets showed little reaction to recent US military action involving Venezuela. Investors focused more on economic trends and earnings outlooks than on political headlines.
Venezuela
Energy stocks gained after interim authorities in Venezuela announced plans to send about 50 million barrels of oil to the US. The news pushed crude prices lower in the short term due to higher expected supply. Lower oil prices benefited US refiners that depend on heavy crude. Shares of Valero Energy rose about 4%, while Marathon Petroleum gained nearly 2%. Analysts said easing sanctions could lead to steady oil flows and improve US energy security over time.
Global tensions
Investors also continued to track tensions in the Middle East, especially between Iran and Israel. Recent diplomatic efforts have helped reduce immediate risks. Stable shipping routes and steady oil prices supported market calm.
