The latest stock market rally gained momentum on January 9 as major indexes and gold prices moved sharply higher.
Gold, the S&P 500, and Nasdaq all posted strong gains after a weaker-than-expected U.S. jobs report fueled investor bets on Federal Reserve rate cuts.
The report indicated a lower increase in jobs compared to expectations, and there was an unexpected decline in unemployment to brighten up the markets.
The markets also await the release of the major inflation results in the next week that might influence the upcoming interest rate hike by the Fed.
In the meantime, a new round of earnings is going to start, and analysts believe that impressive corporate performance will be behind the stocks.
Crypto market steadied as Bitcoin price rebounded from the $90,000 support level, raising hopes of a fresh upward breakout.
Ethereum remained stable around $3,900, while XRP recovered after bouncing off the $2.07 zone, hinting at possible gains.
Stock Market Surges to New Highs After Jobs Data
The S&P 500 jumped 0.7% to close at a record 6,966.28. This marked the index’s third intraday high in a single week and brought its weekly gain to 1.6%.
🚨BREAKING: 🇺🇸 S&P 500 just closed above $6,966 for the first time in history. pic.twitter.com/clioY1txyg
— DustyBC Crypto (@TheDustyBC) January 10, 2026
The Dow Jones also ended in an all-time high, and Nasdaq Composite increased by 0.81% and ended at 23,671.35.
The rally came after the jobs report in December that was announced, showing that the U.S economy had created 50,000 jobs, which was lower than the projected 73,000.
Nonetheless, the unemployment rate reduced to 4.4, which is an indication of possible relief in the labor market strains.
These contradictory signals enhanced anticipations that the Federal Reserve might reduce the rates during the next meeting. The weaker data is a sign to investors that Fed will pivot earlier, particularly as inflation data will be released next week.
Gold Prices Rise as Rate Cut Bets Grow
Gold prices climbed 0.5% on Saturday to $4,496.09, extending weekly gains. The increase was seen when traders changed expectations after the jobs report.
Lightened employment numbers usually underpin gold by increasing safe-haven purchases and undermining the dollar.
The attractiveness of gold has increased as investors are now pricing in two rate cuts in 2026. The opportunity cost of holding non-yielding assets such as gold is low owing to the low interest rates, making it a better hedge.
Another week of solid gains is expected of the metal as the investor mood is dictated by global uncertainties, and the central banks still organizing their policy.
Nasdaq Eyes Higher Targets as Bulls Take Control
The Nasdaq Composite is now targeting the 24,020 level, boosted by rate cut optimism and strong tech sector performance. Friday gains are also a result of a shallow dip following the opening bell and are therefore resilient to volatile macro data.
The broader technology advancement is indicative of increasing investor confidence in corporate income, particularly in expanding sectors. This is in view of increasing expectations of good quarterly profit reporting.
Inflation reports and earnings announcements in the next week will be closely followed in the markets. Such reports may cement or defy the positive run in gold, the S&P 500, and the Nasdaq.