BY EMMANUEL OGBONNA
U.S. stocks advanced in early trading on Friday, extending a broad global rally and giving Wall Street a positive start to the new year as investors returned from the holiday break with renewed optimism.
The S&P 500 climbed 0.7% in morning trading, building on a strong performance from last year that saw the benchmark index rise more than 16% over the course of 2025. The Dow Jones Industrial Average edged up 42 points, or 0.1%, by 10:03 a.m. Eastern time, while the Nasdaq composite surged 1.3%, driven by renewed strength in technology shares.
The upbeat tone was echoed across international markets. Major indexes in Europe and Asia posted solid gains, with benchmark indexes in Britain and South Korea reaching record highs. The synchronized advance underscored investor confidence as global markets reopened following the New Year’s holiday.
Friday’s gains helped reduce some of the losses from earlier in the week, which was shortened by the New Year’s Day market closure on Thursday. With lighter trading volumes typical of holiday periods fading, investors appeared willing to take on more risk, particularly in sectors that led last year’s rally.
Technology stocks once again set the pace, continuing a trend that propelled markets to record levels throughout 2025. Companies closely tied to artificial intelligence and data-center expansion were among the strongest performers, reflecting ongoing enthusiasm for the sector’s long-term growth prospects.
Nvidia rose 2.8%, making it the single largest contributor to the S&P 500’s advance. Apple gained 2%, while Alphabet, the parent company of Google, also climbed 2%. Given their massive market capitalizations, movements in these companies tend to have an outsized effect on broader market indexes.
Investors have remained focused on technology companies as breakthroughs in artificial intelligence fuel expectations of rising demand for advanced computer chips, cloud infrastructure, and related hardware. Wall Street has largely wagered that this demand will justify the enormous capital investments being made by major tech firms, as well as their elevated stock valuations.
Tesla shares rose 0.8% despite the electric vehicle maker reporting a second consecutive year of declining sales, suggesting that investors remain more focused on the company’s long-term ambitions than its near-term delivery figures.
Asian technology stocks also benefited from the renewed appetite for AI-related investments. In Hong Kong, Alibaba shares jumped 4.3%, while Baidu surged 9.4% after announcing plans to spin off its artificial intelligence chip unit, Kunlunxin. The company said the unit could seek a listing in Hong Kong as early as 2027, subject to regulatory approval, a move that investors viewed as a way to unlock value in its AI operations.
In commodities markets, oil prices edged lower. U.S. benchmark crude slipped 1.2% to $56.73 a barrel, while Brent crude, the global standard, fell 1.2% to $60.13 a barrel, reflecting ongoing uncertainty about global demand.
Gold prices moved higher, continuing their recent upward trend as the new year began. The precious metal rose 0.7%, supported by steady demand from investors seeking diversification.
In the bond market, Treasury yields were little changed. The yield on the 10-year U.S. Treasury note ticked up slightly to 4.18% from 4.17% late Wednesday, while the two-year Treasury yield, which is more sensitive to expectations about Federal Reserve policy, held steady at 3.48%.
Overall, the combination of rising stock prices, resilient global markets, and steady bond yields pointed to a cautiously optimistic start to 2026, with investors once again placing their bets on technology and growth as key drivers in the months ahead.
Original article
Comments