Dow, S&P 500 Log Records During First Full Week of 2026

• Defense stocks like Lockheed Martin and Huntington Ingalls Industries, along with energy companies Chevron and Exxon Mobil, surged following the regime change in Venezuela
• The Nasdaq retreated after strong AI stock performance as President Trump moved to restrict defense companies from issuing dividends and stock buybacks, while oil prices declined on oversupply concerns
• The first earnings season of 2026 begins next week with major banks including JPMorgan, Bank of America, Goldman Sachs, and Morgan Stanley reporting, alongside key inflation data releases

Market Summary: First Full Week of 2026

Key Market Performance

The Dow Jones Industrial Average and S&P 500 posted record highs during the first full week of 2026, while the Nasdaq Composite retreated after profit-taking ended its winning streak. The Dow briefly surpassed the 49,000 level before pulling back. All three major indexes remained on track for weekly gains as of Friday afternoon.

Venezuela Impact on Energy and Defense

The U.S. capture of Venezuelan President Nicolás Maduro triggered significant sector movements. Energy stocks Chevron (CVX) and Exxon Mobil (XOM) surged on expectations of increased involvement in Venezuela's oil industry. Defense contractors including Lockheed Martin (LMT), Huntington Ingalls Industries (HII), Northrop Grumman (NOC), and General Dynamics (GD) rallied on heightened geopolitical tensions.

However, gains moderated after President Trump directed defense companies to halt dividends and stock buybacks, while oversupply concerns weighed on oil prices.

Technology Sector Developments

At the Consumer Electronics Show (CES) in Las Vegas, Intel (INTC) launched new laptop processors, pressuring rival AMD. Mobileye (MBLY) announced a $900 million acquisition of humanoid robot startup Mentee. Jefferies downgraded Adobe (ADBE), while cloud provider CoreWeave (CRWV) received a buy rating from D.A. Davidson. Options activity favored Palantir Technologies (PLTR).

Economic Outlook

Weak December employment data fueled hopes for potential rate cuts. The Federal Reserve postponed decisions on President Trump's tariff proposals.

The first earnings season of 2026 begins next week, featuring major banks including JPMorgan, Goldman Sachs (GS), Morgan Stanley (MS), and PNC (PNC), along with additional economic indicators and inflation data.