Wall Street rang in 2026 on a high note, with the stock market climbing and several ETFs off to a strong start. Defense funds, in particular, got a boost early on, thanks to the U.S. operation that ousted Venezuelan leader Nicolas Maduro in January. It’s a reminder that what happens on the world stage can quickly ripple through the markets, affecting how different funds perform.
According to Nasdaq, on January 20, 2026, the S&P 500 slipped 0.06%, the Dow Jones Industrial Average dropped 0.2%, and the Nasdaq Composite declined by 0.7%, reflecting the influence of global developments, sector movements, and evolving policy expectations on investor activity.
One major trend in early 2026 is more investment in defense. Geopolitical tensions, especially after the US removed Venezuelan leader Nicolas Maduro in January, pushed defense stocks higher. Increased global defense spending and new conflicts added to this momentum. The iShares US Aerospace and Defense ETF—which invests in leading US defense and aerospace companies—has gained almost 10 percent this year. This shows how political and military events can directly impact certain industries and related funds.
Gold has once again proven to be a safe-haven asset. According to RTTNews.com, gold prices reached a record high in January as escalating tensions between the US and Iran drove investors toward the stability of gold ETFs like the SPDR Gold Trust. Hopes for interest rate cuts and continued central bank buying have also made gold more attractive for the long term. For new investors, this highlights why it’s important to diversify across different asset types to manage risk.
According to CoinDesk, the CoinShares Bitcoin Mining ETF has been the worst-performing ETF of the year so far, down 43 percent. This fund invests in companies involved in Bitcoin mining. Bitcoin itself rose about 4 percent, helped by hopes for easier monetary policy from the Federal Reserve and a pro-crypto approach from the Trump administration. More interest from big investors and talk of possible US Bitcoin reserves also added to the positive outlook.
The REX Drone ETF, which invests in companies specializing in drones and unmanned aerial vehicles, kept pace with the broader defense sector. For everyday investors, this means headlines about drones are more than just tech hype—they’re moving real money in the market. Meanwhile, the Roundhill Meme Stock ETF also saw an uptick, suggesting that *etail investors are still chasing trends and viral stocks, as in past years. These funds can sometimes deliver eye-popping gains, but it’s important to remember that big rewards often come with big risks, especially for those new to the market.
Another standout this month was the YieldMax MRNA Option Income Strategy ETF. This fund takes a unique approach, aiming to generate income by selling call options on Moderna shares. When Moderna’s stock price jumped after raising its revenue forecast, the ETF’s yield got a boost. But for most people, strategies like this are complicated and carry extra risks—another reminder that big numbers don’t always mean a safer bet.
The Global X Blockchain ETF also surged nearly 30 percent as companies tied to blockchain bounced back. Part of the excitement comes from hopes that interest rates will fall soon, and from a growing sense that digital assets are becoming more mainstream. For investors, it’s a reminder that markets don’t move on numbers alone—stories, sentiment, and headlines can all play a role.
The ups and downs of the market aren’t just about numbers—they’re influenced by what’s happening around the world, the choices leaders make, and even the mood on Wall Street. The way ETFs performed this month shows that understanding the market means more than reading earnings reports or staring at charts. It’s about knowing what people are hoping for, what worries them, and what they believe might happen next. If you’re watching your investments, remember: keeping up with the news and world events can matter just as much as crunching the numbers.