Stocks kicked off the week on a bright note, with all major U.S.stock indices trading higher. A solid factory report showing a slight expansionin the U.S. manufacturing sector provided investors with optimism, marking thefastest growth since 2022. Although the headline numbers were positive, theunderlying commentary still exhibited concerns, noting that January is areorder month after the holidays and that some buying may be occurring to getahead of expected price increases due to ongoing tariff issues. As a result, itremains unclear whether this is the start of a new trend or merely temporaryrelief.
Nevertheless, the market priced in the news generously. The DowJones Industrial Average rose 515 points to 49,408. The NASDAQ gained 0.73% to25,739, while the S&P 500 edged up 0.54% to 6,976. The small-cap index, theRussell 2000, advanced 1.02% to 2,640.
The bond market sold off following the strong economic report andspeculation that Kevin Warsh may formally become the next chair of the FederalReserve. Both the U.S. 5-year and 10-year Treasury yields rose 4 basis pointsto 3.84% and 4.28%, respectively. Meanwhile, gold, silver, and cryptocurrencieshave stabilized after selling off over the weekend.
We will receive a services report tomorrow that could furtherboost optimism, as services now make up the bulk of the United States economy.Previously, services have expanded significantly, and it is generally expectedthat they will do so again.
This is Adams Wealth Advisors, and we will continue to bring youupdates and the latest developments in the market. Thank you for listening.