Wall Street Kicks Off 2026 With Strong Gains/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. and global markets opened 2026 on a positive note. Tech stocks, led by Nvidia and Apple, fueled Wall Street gains. Bond yields remained steady as investors eye economic momentum.
Wall Street Opens 2026 Strong: Quick Looks
- S&P 500 rises 0.7%, extending 2025’s strong finish
- Nasdaq up 1.3%; Dow adds 42 points in morning trading
- Global markets, including U.K. and South Korea, hit record highs
- Tech stocks surge again, led by Nvidia, Apple, and Alphabet
- Nvidia gains 2.8%, continues AI-driven momentum
- Alibaba and Baidu surge in Hong Kong trading
- Baidu to spin off Kunlunxin AI chip unit by early 2027
- Tesla edges up despite another annual drop in sales
- U.S. crude oil slips 1.2% to $56.73 per barrel
- 10-year Treasury yield rises to 4.18%; gold up 0.7%
Deep Look: Wall Street Kicks Off 2026 With Strong Gains
NEW YORK — Wall Street launched 2026 on a high note Friday, with stock indexes climbing and investors showing optimism for the year ahead. The upbeat tone reflected similar momentum across global markets, as major indexes in Europe and Asia also posted gains.
The S&P 500 rose 0.7%, building on a 16% surge in 2025, while the Nasdaq composite led U.S. gains, climbing 1.3%. The Dow Jones Industrial Average posted a modest increase of 42 points, or 0.1%, as of mid-morning.
Market sentiment was positive following the New Year’s Day holiday, with the rally helping to offset earlier weekly losses in a shortened trading week. Investors across continents showed confidence, with Britain’s FTSE and South Korea’s KOSPI hitting record highs.
Tech Stocks Fuel Momentum
Technology stocks, particularly those tied to artificial intelligence, drove the rally. Nvidia, a key player in the AI chip sector, surged 2.8%, becoming the biggest force behind the market’s upward move. Apple and Alphabet also rose 2% each, reinforcing their influence on broader indexes due to their massive market valuations.
AI remains a key growth narrative on Wall Street. Investors continue to bet heavily on the future of data centers, chips, and cloud infrastructure, with expectations that demand for computing power will justify aggressive investment and soaring tech valuations.
Tesla rose 0.8%, despite reporting a second consecutive annual decline in vehicle sales. Investors appeared to shrug off the dip, keeping the stock’s long-term prospects in view.
Chinese Tech Stocks Soar in Hong Kong
In Hong Kong, Alibaba jumped 4.3% while Baidu soared 9.4% after announcing plans to spin off its AI chip subsidiary Kunlunxin. The company intends to list Kunlunxin in Hong Kong by early 2027, pending regulatory approval. The move is seen as part of a broader effort to unlock value and sharpen focus on next-gen technologies.
Commodity and Bond Market Moves
Oil prices declined, with U.S. crude down 1.2% to $56.73 per barrel and Brent crude—the international benchmark—also falling 1.2% to $60.13 per barrel. The decline came amid ongoing concerns over supply levels and demand uncertainty heading into 2026.
Meanwhile, gold prices rose 0.7%, continuing their upward trend and signaling investor interest in safe-haven assets amid broader market shifts.
In the bond market, yields held steady. The 10-year Treasury yield ticked up slightly to 4.18% from 4.17%, while the 2-year yield stayed flat at 3.48%. These levels reflect cautious optimism that the Federal Reserve will maintain a measured approach to rate policy in the months ahead.
Outlook
As markets enter 2026, the focus remains on inflation trends, Federal Reserve decisions, and the pace of global economic recovery. With technology and AI continuing to lead investor enthusiasm, and steady performances across global markets, many see the new year as full of opportunity—if not without risk.
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