Traders work on the floor of the New York Stock Exchange (NYSE) after the opening bell rings on January 2, 2026 in New York.
Angela Weiss | AFP | Getty Images
of S&P500 The index closed slightly higher on Friday, the first trading day of 2026, with gains in semiconductor stocks keeping the index moving higher.
The benchmark rose 0.19% to end at 6,858.47. Nasdaq Composite It fell 0.03% to end at 23,235.63. The S&P 500 and the tech-heavy Nasdaq were up 0.7% and 1.5%, respectively, at record highs, both of which had been solidly positive earlier in the day. of Dow Jones Industrial Average It rose by 319.10 points (0.66%) to settle at 48,382.39.
Friday’s rally marks a reversal from the first-day trading trend of the past several years. The S&P 500 has ended each of the past three years lower on the first day of trading. According to Bespoke Investment Group, going back to the 1950s, there has been no noticeable trend, with stocks ending positive on the first day about 48% of the time.
Major chip stocks etc. Nvidia and micron technology I climbed it in a session. The former rose more than 1%, and the latter rose more than 10%. Both artificial intelligence companies were big winners in 2025, with Nvidia soaring about 39% and Micron soaring more than 240%.
However, there were some losses in technology areas other than chips. Notably, software stocks were under pressure. sales force fell more than 4%, cloud strike It fell more than 3%. Palantir Technologies and microsoft I also pulled back.
moreover, tesla Shares fell more than 2% after the company’s fourth-quarter deliveries fell short of analysts’ expectations.
The best trade of 2025 was technology, with the overall market surging as investors continued to flock to AI stocks. The S&P 500 rose more than 16% last year, marking its third consecutive year of gains. The Nasdaq soared more than 20% last year, while the Dow 30 rose about 13%. All three benchmarks hit record highs last year.
“We’re going to continue to see the back-and-forth between tech and non-tech, but overall we think it’s trending upwards,” said Jay Hatfield, CEO of Infrastructure Capital Advisors. Hatfield, who has a year-end target of 8,000 for the S&P 500, said the bull market will become “more balanced” as local banks outperform and high-valuation tech stocks such as Tesla begin to lag.
“Besides technology, there are other themes that are likely to do well this year,” he continued.
Wall Street strategists expect the U.S. stock market to rise further in 2026. The average target for the S&P 500 this year is 7,629, implying an 11.4% rise, according to a CNBC Market Strategist survey.
Friday’s trading saw some bright spots in other areas across the market. shares of wayfair Although it rose by about 6%, R.H. The increase was about 8% after President Donald Trump on New Year’s Eve delayed for a year a tariff hike on upholstered furniture, kitchen cabinets and bathroom vanities. The order specifically postpones a 30% tax on upholstered furniture and a 50% tax on kitchen cabinets and vanities, while maintaining the 25% tariff on these items imposed in September.
