S&P 500, Dow, Nasdaq today: US stocks started off 2026 on a positive note on Friday, with investors leaning back into technology shares and reacting to policy and economic signals that helped lift sentiment.
Dow Jones Today Lags but Stays Positive, S&P 500 Index Rises, Nasdaq Composite Leads Gains as Tech Stocks Rally
The S&P 500 rose 0.7% on the first trading day of the year, while the Nasdaq Composite climbed 1.3%, leading the gains, and the Dow Jones Industrial Average lagged slightly but still traded about 50 points higher, or 0.1%, as per a report.
US Stock Market Today Focus: Tech Shares Drive Early 2026 Market Optimism
A big reason the market moved higher was renewed strength in large-cap tech. Nvidia shares jumped more than 3% after the stock surged about 39% in 2025, while Apple and Alphabet each rose around 2%. Tesla shares also traded higher even though the company’s fourth-quarter deliveries missed analyst expectations, as the results came in better than some investors had feared.
Also read: TSLA stock jumps to start 2026 despite delivery miss — here’s why Tesla stock investors remain optimistic
SP 500 Index Supported by Big-Tech and Policy Developments
Trade-related news also gave a boost to certain stocks. Shares of Wayfair and RH surged more than 5% and 6%, respectively, after US president Donald Trump delayed planned tariff hikes on upholstered furniture, kitchen cabinets and vanities for one year, as per a CNBC report. The decision keeps a 25% tariff in place instead of allowing higher duties of up to 50% to take effect at the start of 2026.
SP500 Momentum Builds on Strong 2025 Performance
The upbeat start marks a change from recent history. The S&P 500 had finished lower on the first trading day in each of the past three years, though long-term data shows no consistent pattern for how markets perform on the year’s opening session. Bespoke Investment Group pointed out that going back to the 1950s, there is no particular trend, while the first day has finished positive about 48% of the time, as reported by CNBC.
Also read: AMZN stock forecast: Bull, bear, baseline predictions and key drivers explained – will Amazon stock soar or crash by 2030?
Nasdaq and S&P 500 Futures Sentiment Supported by AI Optimism
Last year’s momentum also carried into Friday’s trading. Technology stocks were the standout performers in 2025 as investors poured money into artificial intelligence-related names. The S&P 500 gained more than 16% last year, the Nasdaq jumped over 20%, and the Dow rose about 13%, with all three indexes setting record highs, as per the CNBC report.
Strategists pointed out that combination of steady economic growth, optimism around AI and expectations for further central bank rate cuts helped support stocks, even though the market experienced sharp swings during the year. Deutsche Bank strategists explained that, “It was a strong year overall thanks to continued economic growth, optimism around AI, and more central bank rate cuts,” but added that, “However, those headline gains masked huge volatility, particularly in April when the Liberation Day tariff announcements sparked the 5th biggest two-day slump for the S&P 500 since WWII,” as quoted by CNBC.
Dow Jones Industrial Average and S&P 500 Outlook for 2026
Looking ahead, Wall Street remains broadly optimistic, with the average S&P 500 target for 2026 at 7,629, implying further upside, as per CNBC Market Strategist Survey data.
Dow, S&P 500, Nasdaq Digest Softer Factory Data
Meanwile, US factory activity eased slightly in December as new orders slowed, as per an S&P Global report released on Friday.
The purchasing managers’ index came in at 51.8, slipping from 52.2 in the prior month and landing close to the Dow Jones estimate of 51.7, as per the CNBC report. The index reflects the share of companies reporting growth, and the latest reading still points to expansion, though at a softer pace.
Gains were limited by fewer new orders and slower growth in output. At the same time, there were some positive signs as hiring picked up to its strongest level since August, while both input and output prices increased at their slowest rate in nearly a year.
FAQs
Why did US stocks rise on the first trading day of 2026?
Gains were driven by strength in tech stocks, trade policy developments, and continued optimism from 2025.
How did the S&P 500 perform today?
The S&P 500 rose 0.7%, starting the year on a positive note.