Wall Street started 2026 with small gains after New Year’s Day left markets closed the prior day, and traders kept their focus on stocks most tied to the artificial-intelligence push that helped lift major indexes to records in 2025. The session’s moves were mostly minor and uneven, with technology shares leading swings as investors weighed the sector’s growth expectations against company-specific results. In the background, bond-market pricing and what the Federal Reserve might do next continued to shape expectations for the broader economy.
The benchmark S&P 500 rose 12.97 points, or 0.2%, to 6,858.47. The Dow Jones Industrial Average gained 319.10 points, or 0.7%, to 48,382.39. The Nasdaq composite, however, slipped 6.36 points—less than 0.1%—to 23,235.63, as Microsoft and Tesla fell.
Technology stocks steered the market during the wobbly start to the year, especially companies tied to artificial intelligence. Nvidia helped support the market, jumping 1.3% and acting as the biggest force working to lift shares higher. But a 2.2% decline for Microsoft limited the upside from Nvidia’s strength, and Tesla fell 2.6% after reporting falling sales for a second year in a row.
The tech pull also reflected how Wall Street has been betting that demand for computer chips and other inputs used in data centers can help justify large investments and elevated valuations in the sector. Nvidia, Microsoft and Tesla are among the most valuable companies globally, so their moves can have an outsized influence on daily trading direction.
Outside of tech, furniture stocks gained ground after President Donald Trump moved to delay increased tariffs on upholstered furniture. RH rose 8%, and Wayfair rose 6.1%. In retail and consumer internet, Alibaba climbed 4.3%.
Baidu, which makes the Ernie chatbot, jumped 9.4% in Hong Kong after it said it plans to spin off its AI computer chip unit Kunlunxin, with the new unit expected to list shares in Hong Kong in early 2027, subject to regulatory approvals.
Energy and safe-haven assets were steadier, with crude oil prices mostly stable. U.S. crude fell 0.2% to $57.32 per barrel, while Brent crude, the international benchmark, also dropped 0.2% to $60.75 per barrel. Gold fell 0.3%.
In the bond market, Treasury yields held steady. The yield on the 10-year Treasury rose to 4.19% from 4.17% late Wednesday, while the yield on the two-year Treasury held at 3.48% from late Wednesday, a maturity that tracks expectations for Federal Reserve policy more closely.
Wall Street is set to move past the holiday-shortened period starting Monday, and the first full week of 2026 is expected to include several closely watched economic updates. Next week will feature private reports on the status of the services sector and consumer sentiment, along with government reports on the job market, as investors try to gauge how different parts of the U.S. economy closed out 2025 and where they may be headed in 2026.
The Federal Reserve has already cut interest rates three times toward the end of 2025, partly to counter a weakening jobs market, but inflation remains above its 2% target. The Fed’s caution has kept rate expectations in play, with Wall Street betting the central bank will hold its benchmark interest rate steady at its January meeting.