Wall Street opened 2026 with small gains but a volatile feel, as investors navigated a holiday-shortened week and mostly quiet trading on Friday. The S&P 500 rose 12.97 points, or 0.2%, to 6,858.47, while the Dow Jones Industrial Average climbed 319.10 points, or 0.7%, to 48,382.39. The Nasdaq composite, however, slipped 6.36 points, or less than 0.1%, to 23,235.63, reflecting pressure on large technology names.
Much of the day’s movement came from the technology sector, which has played a prominent role in keeping markets near records. Nvidia helped lift the broader mood, jumping 1.3%, but the stock’s gains were tempered by declines elsewhere in the sector. Microsoft fell 2.2%, adding to the drag on the Nasdaq, and Tesla dropped 2.6% after it reported falling sales for a second year in a row.
The AP report said investors have continued to focus on artificial-intelligence-related companies and the prospect that demand for chips and other data-center inputs could support growth. Because several of the biggest technology stocks sit at the high end of market valuations, their day-to-day moves have been able to push market indexes up and down from hour to hour.
Outside large-cap software and chip makers, other parts of the market saw interest tied to policy and corporate developments. Furniture companies gained after President Donald Trump moved to delay increased tariffs on upholstered furniture. RH rose 8% and Wayfair rose 6.1%, while e-commerce shares also moved higher, with Alibaba climbing 4.3%.
In Hong Kong, Baidu jumped 9.4% after the company said it plans to spin off its AI computer chip unit, Kunlunxin. The plan, as described in the AP report, would place Kunlunxin shares on the Hong Kong exchange in early 2027, and it is subject to regulatory approvals. The move added another AI-linked corporate catalyst to a market already focused on technology spending and chip demand.
Energy and rates were comparatively steady. U.S. crude oil fell 0.2% to $57.32 per barrel, while Brent crude dropped 0.2% to $60.75 per barrel. Gold also slipped, falling 0.3%, and Treasury yields were described as holding steady, with the 10-year yield rising to 4.19% from 4.17% late Wednesday and the two-year yield holding at 3.48%.
Looking ahead, the AP report said Wall Street would move past the mostly quiet holiday season starting Monday. The first full week of 2026 is set to include closely watched economic updates, including private reports on the services sector and consumer sentiment, along with government job-market releases. Investors will also be watching expectations for the Federal Reserve, with the AP report saying Wall Street is betting the central bank will hold its benchmark interest rate steady at its January meeting, even as inflation remains above the Fed’s 2% target.