Daily Market Report – January 9, 2026

Market Summary – Friday, January 9, 2026

Today's trading day was clearly marked by two US data points (labor market + consumer) – and a decision that did not come from Washington: The Supreme Court did not issue a ruling today in the important case against Trump's global tariffs.

The US labor market report for December provided a mixed but market-friendly picture: Employment rose by only 50,000 (below expectations). Additionally, the data from previous months was revised downward. At the same time, the unemployment rate fell to 4.4%. Hourly wage growth was +0.3% m/m. From the labor market report, one can infer: Companies are hiring cautiously, but they are also not massively laying off employees. This has effects on interest rate development: From the Fed Funds futures, the following two expectations can be derived immediately after the labor report: a) 54 basis points of rate cuts in 2026 and b) with a probability of 96%, the Fed will keep the Fed Funds Rate at 3.50-3.75% in January.

The Michigan consumer sentiment rose slightly to 54.0 (from 52.9) – better than expected, but still at a low level. Inflation expectations for the 1-year period remained at 4.2%. In short: Concerns that inflation will rise due to the Trump tariffs are easing, but households remain cautious as the labor market weakens.

In Europe, the STOXX 600 reached a record high, driven among other things by mining stocks and tech titles. Glencore LSE:GLEN rose over 8% as market participants expect a takeover by Rio Tinto.

In the US, the major indices were slightly up. Major winners included utility providers and housing/mortgage stocks: Oklo NYSE:OKLO and Vistra NYSE:VST saw significant gains – Meta announced plans to purchase nuclear power long-term and is working with Oklo on Small Modular Reactors (SMRs) while supporting Oklo with financing.

Trump stated that Fannie Mae and Freddie Mac should buy $200 billion in mortgage bonds to lower mortgage rates. LoanDepot NYSE:LDI and Opendoor NASDAQ:OPEN rose significantly as a result.

US Treasuries: Right after the labor market data, yields moved only slightly. The US dollar index was slightly firmer after the data.

Commodities: Oil was stronger – concerns about potential supply disruptions in Venezuela and Iran led to rising oil prices.