The S&P 500 edged higher on Friday, the first trading session of 2026, as strength in semiconductor stocks helped steady the market.
The benchmark rose 0.19% to close at 6,858.47, while the Nasdaq Composite slipped 0.03% to 23,235.63. Both indexes were firmly in positive territory earlier in the day, with the S&P 500 and the tech-heavy Nasdaq up as much as 0.7% and 1.5%, respectively. The Dow Jones Industrial Average outperformed, gaining 319.10 points, or 0.66%, to finish at 48,382.39.
Friday’s advance marked a shift from recent history. The S&P 500 had declined on the first trading day in each of the past three years, and historical data going back to the 1950s shows no consistent pattern, with the index ending higher on the first day about 48% of the time.
Chipmakers led the gains, with Nvidia rising more than 1% and Micron Technology surging over 10%. Both AI-linked stocks were standout performers in 2025, with Nvidia up roughly 39% and Micron soaring more than 240% over the year.
However, weakness emerged in other areas of technology. Software stocks lagged, as Salesforce fell more than 4% and CrowdStrike declined over 3%. Palantir Technologies and Microsoft also traded lower. Tesla shares dropped more than 2% after the company reported fourth-quarter deliveries that missed analyst expectations.
Technology was the top-performing sector in 2025, driving strong gains across the broader market as enthusiasm for artificial intelligence remained robust. Last year, the S&P 500 climbed more than 16%, the Nasdaq advanced over 20%, and the Dow rose about 13%, with all three indexes hitting record highs.
Outside of tech, there were notable gainers as well. Wayfair shares jumped around 6%, while RH rose roughly 8% after President Donald Trump delayed planned tariff increases on upholstered furniture, kitchen cabinets, and vanities by one year. The move postpones a 30% tariff on upholstered furniture and a 50% duty on cabinets and vanities, while maintaining the existing 25% tariff introduced in September.
