The three major US stock indexes recorded significant growth in the first full work week of 2026. The S&P 500 rose by about 1.6% and closed the week at its highest level in history. The Nasdaq rose by 1.9%, which was mainly due to a significant increase in the price of shares of technology and semiconductor manufacturing companies, especially Broadcom. The Dow Jones Industrial Average recorded the highest growth, by about 2.3%. The growth was contributed by the more non-optimistic-than-expected data on the US labor market, which strengthened market expectations that the US Federal Reserve may reduce refinancing rates this year. At the same time, there was a redirection of capital to those sectors that had lost ground to the technology sector in recent years, which indicates a broader and more balanced nature of market growth.

European stock markets closed last week at a historic high. The pan-European STOXX 600 index rose 1 percent on Thursday, helped by a 10 percent rise in Glencore shares on news of a possible acquisition of Rio Tinto, as well as a rise in technology shares. Defense stocks also rose amid announcements of higher government spending.

On the first day of this week, however, European stock markets fell slightly. The banking sector was the biggest loser. The reason was US President Donald Trump's proposal to cap credit card interest rates at 10% within a year, which would make loans cheaper for people but reduce bank profits.

Global equity funds recorded their first outflow after three weeks of growth, with investors pulling out about $6.07 billion, mainly from US stocks, amid geopolitical risks and uncertainty over the refinancing rate. Meanwhile, European equity funds saw $11.98 billion in inflows, their highest weekly inflow since May 2025. Global bond funds saw $17 billion in inflows, while money market funds saw $161.27 billion in inflows, their highest since December 2024. Meanwhile, gold and precious metals funds ended their eight-week growth streak with small outflows.

Defense stocks surged last week amid Trump’s proposal to increase the US defense budget. The US president plans for the US military budget to reach $1.5 trillion by 2027, up significantly from this year’s $901 billion. US defense companies’ stocks rose 6-8 percent on average; European defense companies’ stocks also rose.

US President Donald Trump has announced that he intends to ban Wall Street from buying houses in an effort to make housing more affordable for individuals. The move has put pressure on housing construction companies, whose stock prices have fallen.

Oil prices have fallen after Trump announced that Venezuela may resume oil exports to the US. According to the US president, about $2 billion in oil could be sent from Venezuela to the US. This led to a drop in oil prices of more than 1 percent.

Wells Fargo analysts note that in early 2026, the growth of US stocks may spread not only to the largest technology companies, but also to other sectors of the market. In particular, interest in the financial, raw materials, energy, and technology sectors is expected to increase.

Alphabet’s market value surpassed Apple’s for the first time since 2019, reaching $3.88 trillion, compared to Apple’s $3.84 trillion. Alphabet’s shares have risen thanks to the company’s effective strategy toward artificial intelligence. The new Ironwood AI chip and Gemini3 AI platform have been particularly successful. Alphabet’s shares have grown by 65% in 2025.

Among companies with a capitalization of at least $10 billion, the biggest increase last week was recorded by Regencell Bioscience Holdings Limited, which develops treatments based on traditional Chinese medicine. The company’s shares rose by 122.93% in a week ($45.79 per share). Next is Revolution Medicines, Inc., which develops innovative targeted anti-cancer drugs, with a growth of 50.14% ($118.64 per share). This trio is concluded by Kratos Defense & Security Solutions, Inc., a developer of defense technologies, unmanned systems and security solutions, up 43.40% ($113.70 per share).

The top three largest-cap companies with the biggest losses last week starts off with Madrigal Pharmaceuticals, Inc., a developer of drugs for the treatment of liver diseases, whose shares fell 13.44% in one week ($514.06 per share). Next is First Solar, Inc., a solar panel manufacturer, down 13.01% ($238.66 per share). Rounding out this top three is CoStar Group, Inc., a provider of real estate market data analysis solutions, down 10.96% ($58.49 per share).

In December, job growth in the US slowed sharply, as only 50,000 new jobs were created, which is significantly lower than the forecast. At the same time, the unemployment rate fell slightly to 4.4% from 4.5%. Job growth was mainly recorded in the restaurants, health and social services sectors, while the retail trade, construction, and manufacturing sectors recorded a decline in the number of new jobs. Overall, only 584,000 new jobs were created in the US in 2025, an average of 49,000 jobs per month, which is about three times less than in 2024.

In the third quarter of 2025, the wealth of US households reached a historical high of $181.6 trillion, compared to $175.6 trillion in the previous quarter, which is mainly due to rising home prices. At the same time, household debt also increased, mainly due to mortgages and consumer loans.

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