Weekly Market Commentary

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WEEK OF JAN. 5 THROUGH JAN. 9, 2026

The S&P 500 index rose 1.6% this week to a fresh closing high in a broad climb led by the consumer discretionary sector.

The S&P 500 ended Friday's session at 6,966.28, its highest closing level ever. The market benchmark also reached an intraday record on Friday at 6,978.36.

Shares of homebuilders and other companies connected with the housing market were among the S&P 500's top weekly gainers after US President Donald Trump said he was instructing his "representatives" to buy $200 billion in mortgage bonds.

"This will drive mortgage rates down, monthly payments down, and make the cost of owning a home more affordable," Trump said in a social media post.

Economic data came in mixed as December nonfarm payrolls in the US rose by 50,000, missing the 70,000 increase expected according to a survey compiled by Bloomberg. The unemployment rate, however, decreased to 4.4% in December from a downwardly revised 4.5% the month before. A 4.5% rate had been expected.

US consumer sentiment improved in January to its highest point since September, but remained subdued compared with year-earlier levels amid inflation and labor market concerns, according to preliminary results from a University of Michigan survey.

The consumer discretionary sector had the largest percentage increase for the week, climbing 5.8%, followed by a 4.8% rise in materials and a 2.5% advance in industrials. Communication services, energy and consumer staples also rose by more than 2% each.

Homebuilders Lennar (LEN) and PulteGroup (PHM) were among the top gainers in consumer discretionary, rising 14% and 11%, respectively, amid Trump's plan for his "representatives" to buy $200 billion in mortgage bonds.

The plan also gave a boost to shares of Builders FirstSource (BLDR), which was the top performer in industrials, jumping 19% on the week.

Albemarle (ALB) had the largest percentage gain in materials, climbing 13% amid several positive analyst actions on the stock. Among them, Baird upgraded its investment rating on Albemarle's shares to outperform from neutral while raising its price target on the stock to $210 per share from $113. Analysts at Jefferies, Berenberg and BofA Securities also raised their price targets on Albemarle's shares.

Utilities was the lone decliner for the week, dropping 1.6%.

NRG Energy (NRG) was the hardest-hit stock in utilities, falling 10% on the week as the company unveiled a new CEO succession plan. Robert Gaudette was named NRG Energy's president effective immediately and chief executive effective April 30. Gaudette, who manages the company's wholesale operations and power generation, will succeed Lawrence Coben who will remain as chair and CEO until April 30 and will serve as an adviser for the remainder of the year.

The earnings season kicks off next week with reports expected from companies including JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC), Citigroup (C), Morgan Stanley (MS) and Goldman Sachs (GS).

Economic data will include the December consumer and producer price indexes, in addition to December new and existing home sales and a delayed report on November retail sales.

Provided by MT Newswires.