US Stock Market Today: NASDAQ Edges Up, Dow Slips as Mixed US Data Tests Early-2026 Risk Appetite

US stocks traded in a tight range on Wednesday, as investors weighed mixed data and geopolitical tension. The S&P 500 held near flat by mid-morning in New York.

The NASDAQ 100 edged up, while the Dow slipped as traders rebalanced positions. In Europe, the Stoxx Europe 600 dipped. Bitcoin slid about 1.7% to roughly $91,600, and Ether fell about 3.3% near $3,166.

Meanwhile, the 10-year US Treasury yield eased to about 4.15%. Yields also fell in Germany and Britain.

US Equities Pause Near Key Index Levels

Investors watched round-number milestones. The S&P 500 neared 7,000, and the Dow approached 50,000. Recent gains reflected expectations for solid earnings and steady inflation.

That backdrop kept attention on the Federal Reserve’s rate cuts. However, traders also priced risks tied to geopolitics, trade friction, and slower growth signals. Market action still showed resilience, despite the shifting risk picture.

Positioning suggested rotation instead of broad selling. Funds shifted toward smaller companies and the wider group outside the biggest technology names. Ed Yardeni of Yardeni Research described growing “AI fatigue.”

He said investors looked wary after years of AI-led gains. Small-cap shares led year-to-date gains through January 6. Investors also favored the other 493 S&P 500 companies.

Individual movers also shaped sentiment. Valero advanced and helped lift refiners after President Donald Trump cited Venezuelan deliveries to the US. Warner Bros. Discovery said an amended Paramount Skydance proposal fell short of its Netflix deal.

Economic Data Reframes the Rate Outlook

Bond traders tracked labor and activity indicators. They also watched Friday’s nonfarm payrolls report. ADP estimated private payrolls rose by 41,000 in December.

That result came in below the economist's forecasts. Consequently, Treasury yields drifted lower as markets priced softer hiring momentum into 2026. Rates also moved lower across much of Europe.

However, a later services report showed faster expansion and stronger demand. That data cooled an earlier bond rally. The Institute for Supply Management gauge marked the quickest pace in over a year.

Florian Ielpo of Lombard Odier said shifting trends create uncertainty. He said markets need to price that uncertainty into assets. Germany’s 10-year yield slipped near 2.82%, and Britain’s 10-year yield fell toward 4.42%.

The dollar index held steady. The euro traded near $1.1696, and sterling hovered near $1.3496. The yen stayed around 156.51 per dollar.

Lower yields supported some rate-sensitive areas, yet traders avoided big bets ahead of payrolls. Additionally, investors tracked heavy issuance that can influence rates and credit spreads. US investment-grade issuance surged early in the week, and European borrowers lined up sizable deals.

Commodities Pull Back as Venezuela Headlines Drive Energy Focus

Precious metals retreated after a recent rally. Gold snapped a three-day rise, and silver dropped below $80 an ounce. Copper also eased after pulling back from a record.

Mining shares fell alongside the metals. Traders reduced risk before key US data. Oil extended losses as Washington increased pressure on Venezuela’s energy sector.

West Texas Intermediate traded near $56 a barrel after a sharp drop. The US European Command said US forces seized a Venezuela-linked, Russia-flagged vessel. The incident occurred in the North Atlantic, adding uncertainty around supply routes.

In credit markets, borrowers rushed to raise funds in the first week of 2026. US investment-grade issuance topped $72 billion in the first two sessions of the week. European issuers lined up large deals as demand for high-grade credit remained firm despite geopolitical stress.

China and Japan shares fell after Beijing restricted exports of dual-use goods to Japan. European defense stocks climbed on expectations of higher regional spending.

Also Read: US Stock Market Today: NASDAQ & S&P 500 Rise as Rate Outlook Hinges on Fresh US Economic Reports