On Jan. 2, the S&P 500 (^GSPC 1.52%) rose 0.19% to 6,858.54 after choppy trading, the Nasdaq Composite (^IXIC 1.78%) slipped 0.03% to 23,235.63 on tech softness, and the Dow Jones Industrial Average (^DJI 1.56%) climbed 0.66% to 48,382.38, leading blue chips higher.
Market movers
Cyclical and industrial strength helped the Dow outperform, while the Nasdaq gave up some of its early gains. However, semiconductor stocks rallied on a persistently positive outlook for increasing demand from AI.
What this means for investors
The first trading day of 2026 was largely positive for investors as the old-school S&P 500 and Dow Jones indexes rose, while the bleeding-edge Nasdaq index was flat. While the tech-focused Nasdaq index gave up its early gains, the semiconductor industry delivered exceptional results today with Sandisk rising 16%, ASML up 9%, and Intel moving 7% higher. These increases were tied to continued optimism surrounding the potential for increased AI spending, which could benefit these stocks.
Elsewhere, Tesla stock slid 3% as its vehicle deliveries fell short of expectations and BYD overtook the company as the world's largest electric vehicle seller. Last but not least, today marked the first trading day for Greg Abel at the helm of Berkshire Hathaway, following his takeover of the company from Warren Buffett after his legendary 60-year run.
