US stocks open lower on Thursday: Dow slips 100 points, Nasdaq down 0.3%

• Defence stocks rallied sharply on Trump's proposed $1.5 trillion 2027 defence budget, up from $901 billion in 2026, with Northrop Grumman surging over 8% and Lockheed Martin climbing 6%
• Technology stocks dragged down the market, with the Nasdaq underperforming at -0.3% as losses in large-cap tech names offset gains in other sectors
• Initial jobless claims rose slightly to 208,000 for the week ending Jan. 3, below the expected 210,000, indicating underlying strength in the labor market despite economic uncertainty

Market Summary: US Stocks Open Lower on Tech Weakness, Defense Rallies

Key Market Movements

US equities opened lower on Thursday, January 8, 2026, with major indices retreating from recent highs. The Dow Jones Industrial Average fell 108 points (-0.2%), the S&P 500 slipped 0.1%, and the Nasdaq Composite underperformed with a 0.3% decline. Technology stocks led losses, weighing heavily on broader market performance.

Sector Performance

Defense stocks surged following President Trump's proposal for a $1.5 trillion defense budget for 2027—a dramatic increase from the $901 billion approved for 2026. Key gainers included:

• Northrop Grumman: +8%
• Lockheed Martin: +6%
• Kratos Defence: +13%
• RTX: +3%

The rally demonstrated swift investor rotation toward sectors positioned to benefit from policy shifts.

Economic Data

Initial jobless claims rose modestly to 208,000 for the week ended January 3, up from 200,000 the prior week but below the expected 210,000. The data reinforces continued labor market resilience despite broader economic uncertainty, with claims remaining near year-low levels.

Market Pressures

Technology weakness stemmed from recent cautious sentiment after both the S&P 500 and Dow touched all-time highs earlier in the week. Previous session declines were triggered by falling crude prices after Trump announced Venezuela would deliver up to 50 million barrels of oil to the US, raising global supply concerns.

Outlook

While markets have largely ignored geopolitical risks recently, rising tensions and policy uncertainty may test investor confidence. The contrast between tech weakness and defense strength highlights sector-specific opportunities amid broader market volatility.