Tech Titans Lead a Shaky Start to 2026

Tech Giants Steer Market Amid Volatility

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.

• S&P 500: Inched up by 12. 97 points (0. 2%), closing at 6, 858. 47.
• Follows a strong 16% gain in 2025.
• Dow Jones Industrial Average: Rose by 319. 10 points (0. 7%), to 48, 382. 39.
• Nasdaq Composite: Dipped by 6. 36 points (less than 0. 1%), to 23, 235. 63.
• Weighed down by losses from Microsoft (-2. 2%) and Tesla (-2. 6%).

AI-Driven Tech Stocks Lead Market Trends

Tech stocks, especially those focused on artificial intelligence, continued to drive market trends.

• Nvidia: Led the charge with a 1. 3% jump.
• Microsoft: Fell by 2. 2%.
• Tesla: Dropped by 2. 6% due to declining sales.

Non-Tech Sectors See Gains

Beyond tech, furniture companies saw gains after President Donald Trump delayed tariffs on upholstered furniture.

• RH: Rose by 8%.
• Wayfair: Rose by 6. 1%.
• Alibaba: Climbed 4. 3%.
• Baidu: Surged 9. 4% in Hong Kong after announcing plans to spin off its AI chip unit, Kunlunxin.

Commodities and Treasury Yields

• Crude Oil Prices:
• U. S. Crude: Fell 0. 2% to $57. 32 per barrel.
• Brent Crude: Dropped 0. 2% to $60. 75 per barrel.
• Gold Prices: Fell 0. 3%.
• Treasury Yields:
• 10-year yield: Rose slightly to 4. 19% from 4. 17%.

Economic Outlook for 2026

The coming week promises more economic updates, including reports on:

• The services sector.
• Consumer sentiment.
• 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.