To The Moon

Overall Market Performance

Global equities closed strongly on January 6, 2026, with major indices not only shrugging off geopolitical tensions but also making fresh record highs. The Dow Jones Industrial Average $DJIA(.DJI)$  surged 484.90 points to 49,462.08, while the S&P 500 $S&P 500(.SPX)$  climbed 42.77 points to 6,944.82, reflecting strong broad-based risk appetite in global markets.

📈 U.S. Equities – Record Highs on Strong Risk Appetite

U.S. markets advanced sharply, led by gains in energy, financials, and cyclicals. Investors remained undeterred by the U.S. military action involving Venezuela, focusing instead on robust earnings expectations, potential future rate cuts, and elevated corporate valuation momentum. Energy and defense sectors outperformed as crude prices found support from geopolitical supply narratives.

📊 European Markets – Continued Uptrend With Defensive Rotation

European equities hit record highs as well, with indexes like the DAX, CAC 40, and FTSE 100 pushing higher. Strong performance in energy and defense stocks helped offset geopolitical concerns, and upbeat macro sentiment sustained optimism. European markets remained resilient, suggesting broader confidence in earnings and growth prospects.

🌏 Asian Markets – Tech & Macro Data Drive Positive Momentum

Asian bourses held strong near multi-year or early-2021 highs, lifted by technology buying, AI sector enthusiasm, and carryover from strong U.S. sentiment. Japan’s Nikkei, Hong Kong’s Hang Seng$HSI(HSI)$  , and China’s Shanghai Composite all posted solid gains. Investors appeared to prioritize economic data and corporate themes over geopolitics.

📊 Commodities & Currencies

Oil prices rebounded, supported by speculation about future production opportunities tied to Venezuelan assets, despite structural production challenges. Precious metals also trended higher, reinforced by safe-haven flows and inflation risk perceptions. FX markets showed relative stabilization as the dollar steadied ahead of key U.S. labour data.

Market Outlook & Insights

Geopolitical Risks: While markets currently overlook short-term geopolitical events, persistent tensions could trigger volatility in oil markets and risk assets.

Monetary Policy: With critical U.S. employment data on the horizon, Fed expectations will remain central to equity valuation trends and yield dynamics.

Sector Themes: Energy and defense sectors continue attracting capital on narratives around geopolitical exposure and structural spending. Meanwhile, AI and technology remain key drivers in Asia and the U.S.

Macro Risks: Slower manufacturing activity signals uneven economic momentum that could temper optimism if growth data weakens further.

Conclusion

Global markets launched the new trading week with strong performance, highlighting robust investor risk appetite and confidence in macro fundamentals despite geopolitical headwinds. The resilience across U.S., European, and Asian markets underscores the importance of structural growth drivers and sector rotation as key themes heading into upcoming economic data releases.