Stock Market News for Jan 8, 2026

Wall Street closed mixed on Wednesday, pulled up by healthcare and AI-focused tech stocks. Investors reassessed recent optimism after strong gains and digested weaker-than-expected U.S. labor data, tempering the rally. Housing acquisition stocks took a hit. Two of the three benchmark indexes finished in the red while one ended in the green.

The Dow Jones Industrial Average (DJI) slid 0.9%, or 466 points, to close at 48,996.08. Twenty-three components of the 30-stock index ended in negative territory, while seven ended in the positive.

The tech-heavy Nasdaq Composite gained 37.1 points, or 0.2%, to close at 23,584.28.

The S&P 500 lost 23.89 points, or 0.3%, to close at 6,920.93. Eight of the 11 broad sectors of the benchmark index closed in the red. The Utilities Select Sector SPDR (XLU), the Industrials Select Sector SPDR (XLI) and the Materials Select Sector SPDR (XLB) receded 2.5%, 1.9% and 1.6%, respectively, while the Health Care Select Sector SPDR (XLV) added 1%.

The fear gauge CBOE Volatility Index (VIX) increased 4.3% to 15.38. A total of 17.4 billion shares were traded on Wednesday, higher than the last 20-session average of 16.2 billion. Advancers outnumbered decliners by a 3.4-to-1 ratio on the S&P 500.

Shares of housing acquisition companies fell sharply on Jan. 7 after President Donald Trump said he was moving to ban large investors from buying single-family homes, a policy aimed at easing pressure on U.S. housing prices. The remarks sparked investor concerns that tougher regulations could disrupt the business models of firms that rely on acquiring and renting out single-family properties at scale.

Housing acquisition companies have been active buyers in recent years, particularly in high-growth markets, contributing to rising home prices and tighter supply for individual buyers. Trump’s proposal was framed as an effort to make homeownership more affordable for families by limiting competition from well-capitalized institutional players. Markets reacted swiftly as traders priced in the risk of reduced growth opportunities, higher compliance costs and potential forced changes to investment strategies.

Consequently, shares of Apollo Global Management, Inc. APO and American Homes 4 Rent AMH fell 5.5% and 4.3%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Job Openings and Labor Turnover Survey (JOLTS) and Automatic Data Processing, Inc. ADP reports released on Jan. 7 pointed to a cooling but stable U.S. labor market, leading to cautious trading on Wall Street. JOLTS data showed a further decline in job openings, highlighting softer hiring demand and reinforcing signs that the labor market is losing momentum. Meanwhile, the ADP report indicated modest private-sector job growth, suggesting hiring has stabilized but remains weaker than expected. Together, the reports eased concerns about overheating and strengthened expectations that the Fed will stay on hold on interest rates. However, the lack of strong job growth tempered investor optimism, contributing to mixed moves across major U.S. stock indexes during the session.