The rally mirrors the pattern that propelled markets through much of 2025, when artificial-intelligence investment drove major technology companies to record valuations. Investors are now watching the CES technology trade show in Las Vegas for fresh AI corporate announcements, while bracing for a week of U.S. labor market data that could shape Federal Reserve policy heading into 2026.
NEW YORK — Technology stocks pushed Wall Street to fresh records Tuesday, with the S&P 500 closing at 6,944.82 — a gain of 42.77 points, or 0.6%, on only the third trading day of 2026. The Dow Jones Industrial Average rose 484.90 points, or 1%, to 49,462.08, its second consecutive record close. Roughly three out of every four S&P 500 stocks advanced on the day.
The gains extended across the broader market. Health care companies, retailers, and industrial firms all moved higher alongside technology. Smaller companies outpaced their larger counterparts: the Russell 2000 index jumped 1.4% and closed just below its December record. The Nasdaq Composite Index ended the session at 23,547.17, up 0.6%.
Technology leaders — and outliers
Amazon surged 3.4%, and its outsized market capitalization helped counter losses elsewhere, including a 1.8% decline in Apple. Micron Technology jumped 10% and Microsoft rose 1.2%. Nvidia wavered throughout the session and finished 0.5% lower.
The session’s largest single-stock move belonged to Sandisk, which surged 27.6%. The data-storage company has gained more than 800% since spinning off from Western Digital in February 2025, according to the Associated Press, with demand for AI-related storage hardware fueling much of the run. Western Digital itself rose 16.8%.
CES trade show puts AI in focus
Technology companies — particularly those tied to artificial intelligence — are under close investor scrutiny this week during the annual CES trade show in Las Vegas. AI advances drove a series of market records through 2025, and investors are watching this week’s corporate announcements for signals about the next phase of AI spending.
Oil retreats as metals gain
Benchmark U.S. crude oil fell 2% to $57.13 per barrel, pulling back from sharp gains the prior session that followed reports of U.S. forces capturing Venezuelan President Nicolás Maduro in a weekend raid, the Associated Press reported. Brent crude, the international benchmark, fell 1.7% to $60.70 per barrel.
Gold prices rose 1% and silver gained 5.7%. Both metals have set record prices over the past year as geopolitical conflicts and trade tensions have driven demand for assets regarded as safe havens, the AP said. European markets also gained ground.
Bond market and Fed outlook
The 10-year Treasury yield rose to 4.17% Tuesday. The 2-year Treasury yield, which tracks expectations for Federal Reserve policy, rose to 3.46%.
The Fed cut its benchmark interest rate three times in the latter part of 2025 to address a softening jobs market. Rate cuts risk fueling inflation, which remains above the central bank’s 2% target. Wall Street expects the Fed to hold rates steady at its late-January meeting, according to the Associated Press.
Several economic reports due this week could shape that decision. The U.S. government is scheduled to release November job openings data on Wednesday, weekly unemployment claims on Thursday, and the December employment report on Friday. The Institute for Supply Management’s services-sector index and the University of Michigan’s consumer sentiment survey are also due Friday. Both are widely monitored because the services sector makes up the bulk of the U.S. economy and consumer confidence has been unsteady under the weight of higher prices and economic uncertainty.