New York, Jan 7, 2026, 13:33 (EST) — Regular session
- Dow slips about 0.2% near midday after Tuesday’s record close
- Banks weigh on the blue-chip index; tech and healthcare lift the broader market
- Investors parse softer labor signals ahead of Friday’s government jobs report
The Dow Jones Industrial Average, about 1.3% shy of 50,000, slipped on Wednesday as bank shares retreated and traders digested fresh labor-market data. At 11:50 a.m. ET, the Dow fell 85.82 points, or 0.17%, to 49,376.26, while the S&P 500 gained 0.19% and the Nasdaq climbed 0.59%. JPMorgan slid 2.5% after Wolfe Research cut its rating, and “the economic news sort of fueled a little bit of profit taking,” said Robert Pavlik, senior portfolio manager at Dakota Wealth. Reuters
The blue-chip index logged another record close on Tuesday, up 0.99% at 49,462.08, as equities climbed globally and investors waited for U.S. data to firm up the Federal Reserve outlook. Financial markets are pricing in two Fed rate cuts this year, LSEG data showed. “It’s roughly due to the January effect,” said Peter Cardillo, chief market economist at Spartan Capital Securities, describing early-year buying that can fade quickly when data disappoint. Reuters
The Labor Department said job openings fell 303,000 to 7.146 million in November in its Job Openings and Labor Turnover Survey (JOLTS), and economists polled by Reuters expect Friday’s payroll report to show a 60,000 job gain in December and the jobless rate easing to 4.5%. Hiring dropped 253,000 to 5.115 million in November, the JOLTS report showed. “The November JOLTS estimates show a notable decline in job openings and little sign of deterioration in labor market conditions,” said Marc Giannoni, chief economist at Barclays. Reuters
Caterpillar and JPMorgan alone accounted for about 132 points of downward pressure on the Dow, as their shares fell 2.3% and 2.2%, respectively, MarketWatch data showed. Because the Dow is price-weighted, higher-priced stocks carry more sway — a $1 move in any component shifts the index by about 6.16 points.
A separate private-payrolls gauge offered little comfort. ADP said employers added 41,000 jobs in December and annual pay for job-stayers rose 4.4% year-on-year. “Small establishments recovered from November job losses with positive end-of-year hiring, even as large employers pulled back,” said Nela Richardson, ADP’s chief economist. ADP Media Center
At the same time, the services side of the economy looked firmer at year-end. The Institute for Supply Management said its Services PMI rose to 54.4 in December while its prices gauge eased to 64.3; readings above 50 indicate expansion. “In December, the Services PMI registered a reading of 54.4 percent … a third consecutive month of expansion,” said Steve Miller, who chairs the ISM survey committee. PR Newswire
But the path is messy. The U.S. Supreme Court is preparing rulings for Friday that could include a decision on the legality of President Donald Trump’s sweeping global tariffs, a case investors see as a potential market mover. Any surprise outcome could rattle industrial and consumer names that dominate the Dow, and revive questions about how quickly trade rules can shift.
The next hard catalyst is Friday’s U.S. employment report for December, due at 8:30 a.m. ET. Investors will also look to the December consumer price index on Jan. 13 for a clearer read on inflation after a week dominated by jobs signals.
