Trader Peter Tuchman wears 2026 glasses as traders work on the floor of the New York Stock Exchange as the opening bell rings on December 31, 2025.
Timothy A. Clary | AFP | Getty Images
The new year begins much like the old.
The first trading day of 2026 began on Friday, with the technology industry leading the way, just like last year. Nvidia Advanced. Semiconductors emerged as a group; VanEck Semiconductor ETF Earning more than 2% profit. micron While it rebounded by more than 7%, AMD It increased by more than 2%.
It was up at the beginning of the session, but has fluctuated since then.
As in the past three years, artificial intelligence was the best trade in 2025, but it stumbled towards the finish line as investors, wary of high valuations, began pivoting to other groups. The Nasdaq Composite Index, known for its heavy exposure to tech companies, ended last year with two straight months in the red.
This rotation had many strategists nervous that tech stocks would have an even harder climb in 2026 as traders started demanding companies justify their huge AI spending with profitable applications. Many investors have called for cyclical companies to wrest market leadership from technology in 2026, widening the reach of the stock market. They saw it as a healthy development to extend the bull market.
It’s too early, but for now, investors in 2026 will stick with their favorite technology stocks. Nancy Tengler, head of investments at Laffer Tengler Investments, said she plans to be selective about buying the dip, as she did last year. cloud strike and AMD Her name is among the names she highlights in her portfolio. Crowdstrike was down slightly on Friday.
“We’re going to keep an eye on the tech names, because I think they’re going to last at least another year,” Tengler said, adding: “The way we see it, the winners keep winning.”
Nvidia, performance of the day
Some are concerned that the market may look less optimistic from here. Broadly speaking, Wall Street expects the S&P 500 to rise about 11% in 2026, according to a 2026 CNBC Market Strategist survey, which is a sizable increase but still less than the gains of the past three stocks.
On Wednesday, Bank of America strategist Savita Subramanian said the S&P 500 index is overvalued, which means “the risks to the index are significant in 2026.” The strategist’s year-end target for the S&P 500 index of 7,100 is among the lowest among those surveyed.
And Adam Parker, founder of Trivariate Research, told CNBC’s “Squawk on the Street” last week that he’s concerned about the level of optimism on the Street heading into 2026.
“I think the consensus is pretty bullish,” Parker said. “You’re betting on strong earnings growth, but you don’t know if it’s just as likely.”
Still, the outperformance of tech companies at the beginning of the new year suggests there is still room in the AI industry, at least for now.
