Whalesbook
Wall Street Continues Record Run
U.S. stock markets kicked off 2026 with sustained momentum, marking another session of gains across major indices. The benchmark Dow Jones Industrial Average surged by nearly 500 points, pushing past the 49,000 level for the first time in history. This rally represents a remarkable climb of approximately 1,500 points within the first three trading days of the year, fueled by broad market participation.
Tech Stocks Face Headwinds
Despite the overall market strength, technology stocks showed mixed performance. Nvidia Corporation's shares declined even as the company projected an enhanced $500 billion revenue outlook for its AI and data center chips by year-end 2026. Strong customer demand from China for its H200 AI chips, now eligible for export, was noted. However, this sector-specific weakness capped the Nasdaq Composite's gains, which rose 0.6% but remained distant from its own record high.
Economic Indicators Signal Slowdown
The Services Purchasing Managers' Index (PMI) for December indicated continued expansion but at a decelerated pace, falling to 52.5 from November's 54.1. A reading above 50 signifies growth. This moderation did little to shift Federal Reserve rate cut expectations, with the CME FedWatch tool showing over 80% of participants anticipating no change in policy at the upcoming meeting.
Investor Outlook Positive
A Bloomberg Market Pulse Survey of 590 respondents revealed significant optimism for the year ahead. Sixty percent anticipate the S&P 500 will achieve returns between 10% and 20%, which would mark the fourth consecutive year of double-digit growth, a performance last observed in the late 1990s. Surveyed participants also largely foresee a continuation of U.S. Dollar weakness and expect Nvidia to be the year's top-performing asset.
Commodities Mixed
Precious metals maintained their upward trend, with Gold prices returning to the $4,500 per ounce level and Silver reclaiming ground above $80 per ounce. In contrast, crude oil prices relinquished earlier gains. Brent crude settled back around the $60 per barrel mark following minor fluctuations after reports of U.S. involvement in Venezuela.