Daijiworld Media Network - New York
New York, Jan 3: U.S. stocks began 2026 on a mixed note, mirroring trends seen through much of 2025, with artificial intelligence-linked shares jumping while broader markets showed muted movement.
The S&P 500 ended Friday’s session marginally higher, while the tech-heavy Nasdaq closed fractionally lower. The Dow Jones Industrial Average outperformed, rising around 0.6 per cent, or 319 points.
Artificial intelligence stocks led gains, extending momentum from 2025, when the AI boom played a key role in lifting equities. Analysts expect AI to remain a dominant market theme in the year ahead, alongside expectations of steady global growth and potential interest rate cuts.
“Most financial assets had a decent performance in 2025, with global equities, bonds, credit and emerging market assets all having a strong year,” Jim Reid, Deutsche Bank’s global head of macro research and thematic strategy, said, attributing gains to global growth, optimism around AI and central bank rate cuts.
Wall Street sentiment remains broadly positive. In a Bloomberg survey, all analysts polled predicted gains for the S&P 500 in 2026, with a consensus forecast of a 9 per cent rise. Bank of America, however, offered a more cautious outlook, projecting gains of about 3.7 per cent.
AI-related companies such as Sandisk, Micron, Western Digital, Intel and Constellation Energy were among top gainers, boosted by reports of AI IPOs in Asia and new research from China’s DeepSeek on efficient AI development. Heavyweights Nvidia, Broadcom and Taiwan Semiconductor also advanced.
Outside technology, shares of RH and Wayfair surged after President Donald Trump delayed new tariffs on furniture products. Precious metals opened higher but pared gains, with gold ending slightly lower and silver closing up about 1.8 per cent.
Oil prices edged down, extending last year’s sharp decline, which helped push average U.S. gasoline prices to $2.83 per gallon, down from $3.06 a year earlier, according to AAA.
Despite strong gains in 2025, U.S. equities lagged international markets. The MSCI All Country World ex USA index rose over 30 per cent, with markets such as South Korea, Japan, Germany and the UK posting sharp advances, driven largely by AI-linked stocks.
Analysts cautioned that risks remain, with mixed signals from labour data and consumer strength. “We’re balanced on a knife edge,” Bank of America economist Aditya Bhave said, highlighting uncertainty over the market’s next direction.