S&P 500 Starts 2026 Higher as Tech Extends AI-Fueled Momentum; Nvidia Jumps, Tariff Delay Lifts Retailers
U.S. stocks opened 2026 on a positive note Friday, with technology shares leading the charge as investors leaned back into the same AI-driven trade that powered much of last year’s rally. The S&P 500 rose about 0.7%, while the Nasdaq Composite gained roughly 1.3% and the Dow hovered near flat to slightly higher early in the session.
Tech leads again: Nvidia, Apple, Alphabet push higher
Big tech names were among the strongest movers:
- Nvidia climbed more than 3% in early trading, continuing its momentum after a strong 2025.
- Apple and Alphabet were also higher by around 2%.
The move echoes the broader 2025 story, when AI enthusiasm helped drive major index gains — with the S&P 500 up about 16%, the Nasdaq up about 20%, and the Dow up about 13% for the year.
Tesla edges up despite delivery miss
Tesla traded higher even after reporting fourth-quarter deliveries that came in slightly under many analysts’ expectations — though the numbers were still better than some “whisper” forecasts on the Street.
Tariff delay sparks a pop in home-goods names
Shares of home-related retailers jumped after President Donald Trump postponed scheduled tariff increases on several imported furniture categories for a year:
- The order delays a planned 30% tariff on upholstered furniture and a 50% tariff on kitchen cabinets and vanities, while keeping the existing 25% tariff in place (until at least Jan. 1, 2027, per the White House/press reports).
- Stocks like Wayfair and RH rose sharply on the news in early trading.
Economic check: Manufacturing PMI eases
Fresh data also showed U.S. factory activity expanding but slowing:
- S&P Global U.S. manufacturing PMI for December slipped to 51.8 (from 52.2), with commentary pointing to softer demand/new orders while employment growth improved. Trading Economics+1
What Wall Street is watching next
After a volatile finish to 2025, strategists are largely looking for additional upside in 2026 — though many also warn that tariffs, rates, and valuation risk could keep volatility elevated. Reuters+1