The first trading day of 2026 saw U. S. stocks making small gains, with tech giants steering the market. The day was marked by ups and downs, reflecting the uncertainty of the new year. The S&P 500 inched up by 12. 97 points, or 0. 2%, closing at 6, 858. 47. This follows a strong 16% gain in 2025. The Dow Jones Industrial Average also rose by 319. 10 points, or 0. 7%, to 48, 382. 39. However, the Nasdaq composite dipped by 6. 36 points, or less than 0. 1%, to 23, 235. 63, weighed down by losses from Microsoft and Tesla.

Tech stocks, especially those focused on artificial intelligence, continued to drive market trends. Nvidia led the charge with a 1. 3% jump, while Microsoft's 2. 2% fall and Tesla's 2. 6% drop due to declining sales added to the market's volatility. These companies, among the most valuable globally, significantly influence market movements.

Beyond tech, furniture companies saw gains after President Donald Trump delayed tariffs on upholstered furniture. RH and Wayfair rose by 8% and 6. 1% respectively. Meanwhile, e-commerce giant Alibaba climbed 4. 3%, and Baidu surged 9. 4% in Hong Kong after announcing plans to spin off its AI chip unit, Kunlunxin.

Crude oil prices remained stable, with U. S. crude falling 0. 2% to $57. 32 per barrel and Brent crude dropping 0. 2% to $60. 75 per barrel. Gold prices fell 0. 3%, and Treasury yields held steady, with the 10-year yield rising slightly to 4. 19% from 4. 17%.

The coming week promises more economic updates, including reports on the services sector, consumer sentiment, and the job market. These reports will provide insights into the U. S. economy's performance in 2025 and its prospects for 2026. The Federal Reserve faces a challenging task, balancing a weakening jobs market with persistent inflation above its 2% target. The Fed has already cut interest rates three times in late 2025 and is expected to hold rates steady in January.

Tech Titans Lead a Shaky Start to 2026

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