2026-01-11 05:22:04

The first full trading week of 2026, a clear signal is spreading through the market—risk assets are experiencing a broad-based recovery.

U.S. stocks lead the rally. The S&P 500 index rose 1.6% during the week, but even more impressive is the Russell 2000, which represents small- and mid-cap stocks, surging 4.6%. Passive funds also caught the wave; the Vanguard S&P 500 ETF(VOO) accumulated $10 billion in just a few days—such speed is almost astronomical for passive funds.

But the real story lies in asset rotation. Investors suddenly grew tired of last year's routine of clinging to tech giants and defensive assets, collectively rushing into cyclical industries and commodities, which carry higher risks. Analysts from institutions like Nomura Securities International also echoed this sentiment, pointing out that factors such as resilient employment, rising freight costs, and sustained auto demand are driving this shift. These signals often herald the beginning of an economic recovery.

The performance of precious metals is the most convincing. Spot gold rose over 4% in a single week, gaining $177 in total; spot silver increased nearly 10%, with a total gain of over $7. The geopolitical tensions and changing expectations for Federal Reserve policies have become dual drivers for precious metals.

However, there was a twist midweek. After the release of the US ISM Manufacturing Report, data showed the economy was strong, temporarily dampening market expectations of a recent Fed rate cut, and precious metals took a hit. Just when it seemed the trend might change, Friday’s non-farm payrolls data delivered a slap—job growth was far below expectations, immediately pushing the market back to the center stage of the Fed’s continued easing outlook for 2026.

That’s just the rhythm of the market: data takes turns, and expectations are constantly rewritten.

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PebbleHander

· 12h ago

Russell 2000 soars by 4.6%, this is the real signal, retail investors finally have something to do.

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LayerZeroHero

· 20h ago

The Russell 2000 up 4.6% is truly impressive; this is the real risk-on signal. Gold and silver have surged quite strongly; it feels like the rate cut expectations are about to rise again. Non-farm payrolls beat ISM; does the Federal Reserve still need to keep easing? Funds are shifting from technology to cyclical sectors; are the big companies that held on tight last year going to suffer? VOO attracted 10 billion USD in one week... this speed is indeed top-tier, but isn't this a sign of chasing the high? I remain bullish on precious metals this wave; the geopolitical situation isn't over yet. Data conflicts are really annoying; next week, we’ll have to watch for new trends. The rotation in the US stock market is quite fierce; small caps are soaring directly. Weak employment data means the Federal Reserve really has to tighten now.

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DegenDreamer

· 01-11 05:52

The Russell 2000 rose 4.6%, this is the real signal—small-cap stocks are taking off. --- Gold and silver's recent gains can't be sustained, with geopolitical tensions and Federal Reserve expectations doubling down, making for a thrilling ride. --- The non-farm payroll data reversed immediately after release; the market is truly so magical—expectations change on a dime. --- Funds are flowing out of tech giants and into cyclical sectors, indicating everyone is already tired of last year's defensive playbook. --- Hundreds of millions flooded into VOO in just a few days? The FOMO in passive funds is just too obvious. --- When the ISM manufacturing data was strong, precious metals were hammered; yet non-farm payrolls directly slapped back—this reversal left me stunned. --- The continued expectation of easing this year has returned; does the Fed still need to keep pumping liquidity? That sounds unrealistic. --- Spot gold rose $177 in a single week, silver nearly up 10%—this is what true safe-haven assets awakening looks like. --- Job growth is far below expectations, so the Fed's rate cut sword still needs to be wielded. --- The rotation between cyclical industries and commodities—whether it's a sign of economic recovery or just a false alarm—let's wait and see.

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defi_detective

· 01-11 05:51

Russell 2000 up 4.6% in a week. Is this true or is the data just fooling me again? Gold and silver both rose, driven by geopolitical tensions and Federal Reserve expectations—a classic combination. Non-farm payroll data hammered precious metals, but they bounced back again. Is the market just playing a show? Moving from tech stocks to cyclical stocks—how long can this rotation last? In the past few days, $10 billion has flowed into VOO. Even passive funds are craving it.

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TopBuyerForever

· 01-11 05:51

This week's market is really surreal... A few days ago, I was bearish and got proven wrong, then I turned around and chased risk assets. My cyclical stocks finally get to breathe. After the non-farm payrolls report, it feels like a reversal is coming again. The Federal Reserve still needs to cut interest rates... Gold and silver are surging fiercely this wave. Russell 2000 up 4.6%? Why didn't I catch up? Is this another case of chasing highs? Passive funds entering 10 billion? That number sounds a bit unreal to me... Could this be the start of another eating spree? Tomorrow is another new story, just waiting to be re-educated by the market.

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GateUser-44a00d6c

· 01-11 05:49

The Russell 2000 surged 4.6%—is this really crazy? Small-cap stocks are on the rise, and it feels like something big is about to happen. The recovery of risk assets is happening, but it seems like the data will change the narrative again once released. This cycle... is a bit exhausting. The rise in gold and silver prices is really compelling; I have to get on board. Non-farm payrolls hit, and precious metals plummeted—does the market have such a big temper? Passive funds have entered with $10 billion, indicating that institutions are starting to get restless. Is this truly a rotation into cyclical stocks, or is it just another false alarm? The Federal Reserve's policy expectations are changing daily. As retail investors, we just go with the flow.

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ProveMyZK

· 01-11 05:47

The Russell 2000 rises 4.6%, is this really the end? Are small-cap stocks about to take off? --- Once again, data proves us wrong. The non-farm payroll report on Friday completely reversed expectations. This move left me dazzled. --- Gold and silver are soaring wildly. The geopolitical card has been kept in hand and played continuously. --- Passive funds attracted $10 billion in just a few days? That speed is indeed frightening, indicating that funds are really pulling out of tech. --- I am optimistic about this rotation in cyclical stocks. Those who held onto tech last year might need to start trimming now. --- ISM report vs. non-farm payroll, when will this wild market rhythm finally settle down? --- Asset rotation is the key. It shows that big institutions are really starting to rebalance their portfolios, and the opportunity to follow the trend has arrived. --- The rise in precious metals looks comfortable, but I still feel there are uncertainties with the Federal Reserve. --- $10 billion inflow into VOO, this is a vote of confidence in passive investing. --- With employment data so weak, will the Federal Reserve really continue to ease? I find it hard to believe.

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SingleForYears

· 01-11 05:45

The Russell 2000 rose 4.6%, small and mid-cap stocks are really on the rise this time The surge in gold and silver feels like geopolitical tensions are about to escalate again Non-farm payroll data proved us wrong, the Fed's easing expectations are back alive, this reversal is incredible Asset rotation is so fast, whether to chase or not is a real dilemma Moving from defensive assets to commodities, how frequently does this operation happen? $10 billion flooded into VOO, passive funds are also getting restless ISM remains strong but was cut down by non-farm payrolls, the market's mind is quite chaotic The 4% increase in precious metals is tempting, but geopolitical risks feel like a ticking time bomb Weak employment data indicates the economy isn't as solid as it seems Such rapid rotation, is it a real recovery or just funds gambling?

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