US Equity Indexes Close Mixed as Technology Sell-Off Precedes Friday's Nonfarm Payrolls

05:13 PM EST, 01/08/2026 (MT Newswires) -- US equity indexes were mixed on Thursday as a technology sell-off hit the Nasdaq Composite, offsetting gains in old-economy sectors ahead of a much-anticipated nonfarm payrolls report.

The Nasdaq Composite fell 0.4% to 23,480.02, while the Dow Jones Industrial Average rose 0.6% to 49,266.11. The S&P 500 was little changed at 6,921.46.

All sectors except technology and health care posted strong gains. Energy, consumer staples, consumer discretionary, and materials were standout outperformers.

Micron Technology (MU) , Applied Materials (AMAT) , and Intel (INTC) were among the steepest decliners in a list of companies with the biggest market capitalization in the US market, according to data compiled by Finviz. The trio was down at least 3.6% each.

Shares of defense contractors surged after President Donald Trump called for a 50% increase in the US military budget on Truth Social late Wednesday. Lockheed Martin (LMT) and Northrop Grumman (NOC) jumped 4.3% and 2.4%, respectively.

Investors "turned cautious in the run up to Friday's crucial nonfarm payrolls, while defense companies advanced after President Donald Trump called for a $1.5 trillion budget," according to a note from D.A. Davidson.

After rising 64,000 in November, nonfarm payrolls are expected to increase 70,000 in December, potentially marking the strongest pace in three months, according to a note from Stifel.

"At the very least, the more favorable data thus far this week is boosting expectations for the December employment report, which will no doubt offer further insight into the momentum of hiring heading into the new year," Lindsey Piegza, Chief Economist at Stifel, said in the note.

In economic news Thursday, US initial jobless claims rose to 208,000 in the week ended Jan. 3 from an upwardly revised 200,000 in the previous week, missing expectations for 212,000 in a Bloomberg-compiled survey.

Outplacement firm Challenger, Gray & Christmas reported companies planned to cut 35,553 jobs in December, down from 71,321 in November and 38,792 in December 2024, and the lowest level since July 2024.

"The year closed with the fewest announced layoff plans all year," said Andrew Challenger, the company's chief revenue officer. "While December is typically slow, this coupled with higher hiring plans, is a positive sign after a year of high job cutting plans."

Most US Treasury yields rose, with the 10-year yield up 3.1 basis points to 4.17% and the two-year rate higher by 2.3 basis points to 3.49%.

In company news, Costco Wholesale (COST) reported December sales of $29.86 billion, up 8.5% from $27.52 billion a year ago. Shares of the retailer jumped 3.7%, among the top gainers on the Nasdaq.

In energy markets, West Texas Intermediate crude oil futures soared 4.5% to $58.48 a barrel.

In precious metals, silver futures dropped 1.3% to $76.60 per troy ounce, while gold futures rose 0.5% to $4,486.70.

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