S&P 500 Starts 2026 Higher as Semiconductor Stocks Lift Market

Friday, the first trading day of 2026, saw the S&P 500 end marginally higher as advances in semiconductor names kept the index afloat.

US stock market opens 2026 higher

The Nasdaq Composite dropped 0.03% to settle at 23,235.63, while the benchmark finished up 0.19% at 6,858.47. The S&P 500 and the tech-heavy Nasdaq both saw strong gains earlier in the day, rising by 0.7% and 1.5%, respectively, at their highest points. The Dow Jones Industrial Average closed at 48,382.39 after rising 319.10 points, or 0.66%.

The first-day trading pattern of the last several years has reversed with Friday’s increase. For the last three years, the S&P 500 ended the first day of trading down. According to Bespoke Investment Group, there is no clear pattern going back to the 1950s, with the first day ending positively around 48% of the time.

Dow Jones and S&P 500 gain today

During the session, important semiconductor stocks including Nvidia and Micron Technology increased. The latter increased by more than 10%, whereas the former increased by more than 1%. In 2025, both artificial intelligence-related companies had significant gains: Micron increased by more than 240%, while Nvidia increased by over 39%.

However, there were also losses in other areas of technology than chips. Software companies were particularly under pressure, as CrowdStrike fell more than 3% and Salesforce fell more than 4%. Microsoft and Palantir Technologies also withdrew. Additionally, after the company’s fourth-quarter deliveries fell short of analyst projections, Tesla shares were down more than 2%.

Semiconductor stocks boost market as tech turns mixed

Tech was the finest trade of 2025, and as investors continued to pour money into AI names, the whole market saw a significant increase. For the third consecutive year, the S&P 500 increased by more than 16% last year. Last year, the 30-stock Dow gained around 13%, while the Nasdaq surged over 20%. Last year, all three benchmarks reached all-time highs.

According to Jay Hatfield, CEO of Infrastructure Capital Advisors, “we anticipate that you will have this continual rotation back and forth between tech and non-tech, but that generally we will trend upward.” Hatfield said that the rise would be “more balanced” as regional banks thrive and tech firms with high valuations, like Tesla, begin to lag. Hatfield has an 8,000 year-end goal for the S&P 500. He went on, “There are topics other than technology that are highly likely to work this year.”

Wall Street outlook 2026 remains optimistic

In 2026, Wall Street experts anticipate more increases for the US stock market. According to the CNBC Market Strategist Survey, the average S&P 500 objective for the year is 7,629, indicating a 11.4% increase.

There were some positive developments in the larger market during Friday’s session. After President Donald Trump postponed tariff rises on upholstered furniture, kitchen cabinets, and vanities for a year on New Year’s Eve, Wayfair shares surged by 6%, while RH rose about 8%. In particular, the decision postpones a 50% charge on kitchen cabinets and vanities and a 30% duty on upholstered furniture, maintaining the 25% tariff on such items that was in effect back in September.

Nasdaq slips as tech stocks mixed

In the first session of the new year, the Dow and S&P 500 close higher Both the Dow Jones Industrial Average and the S&P 500 ended Friday’s trading session higher.

The 30-stock Dow rose 319.10 points, or 0.66%, to 48,382.39, while the broad-based index finished up 0.19% at 6,858.47. The Nasdaq Composite, on the other hand, fell 0.03% to 23,235.63.

About the Author

I’m Gourav Kumar Singh, a graduate by education and a blogger by passion. Since starting my blogging journey in 2020, I have worked in digital marketing and content creation. Read more about me.