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Today Fundamental Analysis: US Equities Pull Back on Wednesday After Logging Record Highs Earlier in the Week

January 8, 2026, 08:00

Dow Jones and S&P 500 ended Wednesday lower, snapping three-day winning streaks despite hitting intraday record highs. The S&P 500 fell about 0.3%, the Dow dropped roughly 01%, while the Nasdaq was slightly higher, supported by Alphabet’s rally.

Asia-Pacific markets were mixed on Thursday after Wall Street’s decline, as investors continued weighing geopolitical concerns and comments from U.S. President Donald Trump. Trump’s announcement that he would block dividends and stock buybacks for defense contractors until they address production issues hit sentiment in the sector, contributing to weakness in related shares.

In the forex market, USD/CAD edged higher near 1.3878 in early trading as falling oil prices weighed on the Canadian dollar. Pressure on CAD increased after President Trump said Venezuela could supply 30–50 million barrels of oil to the U.S., raising concerns that Venezuelan crude may replace some Canadian exports. With Canada highly sensitive to oil prices, this development prompted a reassessment of bullish CAD expectations for 2026, while markets also await key U.S. economic data for clues on Federal Reserve rate cuts.

Gold prices dropped for a second day in Asian trading, retreating toward recent lows, but losses remain limited. The pullback is driven by profit-taking and a rising dollar. Ongoing geopolitical tensions, expectations of US Federal Reserve rate cuts this year, and a softer US dollar backdrop are helping support the safe haven metal. Traders remain cautious ahead of Friday’s key US Nonfarm Payrolls report, which is expected to shape near-term direction for both the dollar and gold.

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