NEW YORK, January 2, 2026, 4:30 PM ET — After-hours
- U.S. stocks finished mixed to start 2026, with the Dow higher and the Nasdaq little changed to lower.
- Chip shares outperformed, while megacap consumer names weighed on broader momentum.
- Investors are turning to January jobs, inflation and early earnings reports for the next directional cue.
Wall Street ended mixed on Friday, with the Dow snapping a four-day losing streak to start 2026 as chipmakers and industrials rallied, while consumer discretionary shares weighed. The Dow Jones Industrial Average rose 311.99 points, or 0.67%, to 48,383.22; the S&P 500 added 12.52 points, or 0.18%, to 6,858.02; and the Nasdaq Composite slipped 5.30 points, or 0.02%, to 23,236.69. Recent selling also snuffed out hopes of a “Santa Claus rally” — a tendency for stocks to firm in the last five trading days of December and the first two of January — and Bank of America strategist Savita Subramanian said, “Stocks trade expensive on 18 of 20 measures.” 1
The muted start comes after a strong 2025, when the S&P 500 rose 16.39% and the Nasdaq gained 20.36% for a third straight year of double-digit gains, according to LSEG Lipper data. U.S. equity funds took in about $16.89 billion in the week to Dec. 31, while money market funds drew $83.71 billion as some investors kept cash parked on the sidelines. 2
The rates backdrop turned less supportive. The benchmark 10-year U.S. Treasury yield rose 4.2 basis points — a basis point is 0.01 percentage point — to 4.195%, as markets looked ahead to incoming labor-market readings. Higher yields can pressure stocks by raising the interest rate investors use to value future earnings. 3
In after-hours trading, Nvidia (NVDA) was last up 1.2% and Intel (INTC) jumped 6.7%, extending a broad chip rally. The VanEck Semiconductor ETF (SMH) rose 3.7%, while Micron Technology (MU) surged 10.5% and Taiwan Semiconductor Manufacturing (TSM) gained 5.2%.
Industrials also outperformed. Caterpillar (CAT) climbed 4.4% and Boeing (BA) added 4.9%.
Some of the heaviest pressure came from megacap consumer names. Amazon.com (AMZN) fell 1.9% and Tesla (TSLA) slid 2.6%.
Tesla said it delivered 1.64 million vehicles in 2025, down from 1.79 million in 2024, as demand cooled after U.S. tax credits expired and competition intensified. Fourth-quarter deliveries fell 15.6% to 418,227 and missed analysts’ estimates of 434,487, according to Visible Alpha figures cited by Reuters. Reuters also reported China’s BYD outsold Tesla for the first time on an annual basis, and Tesla is set to report fourth-quarter results on Jan. 28. 4
Furniture-related shares jumped after President Donald Trump signed a proclamation delaying higher tariffs on upholstered furniture, kitchen cabinets and vanities for another year, the White House said. Wayfair (W) rose 6.1%, Williams-Sonoma (WSM) gained 5.2% and RH (RH) climbed 8.0%. 5
The Dow’s outperformance over the Nasdaq hinted at a tilt toward cyclical and value shares early in the year, even as investors stayed selective in growth. The late-December pullback left markets looking for clearer signals on rates and earnings.
With valuations elevated, investors are watching whether earnings growth can keep pace with prices. In practice, every uptick in long-term yields tightens financial conditions and raises the bar for companies priced on distant profits, such as high-growth tech.
January’s calendar looks crowded: the monthly jobs report is due Jan. 9 and economists expect payrolls to rise by 55,000, according to a Reuters poll, while the consumer price index is scheduled for Jan. 13. Fed funds futures — derivatives tied to the central bank’s policy rate — suggest little chance of a cut at the Fed’s late-January meeting, with the benchmark rate currently 3.5%-3.75%, but nearly a 50% chance of a quarter-point reduction in March. Fourth-quarter earnings season also ramps up with JPMorgan Chase reporting on Jan. 13, and LSEG IBES — a compilation of analysts’ estimates — sees S&P 500 earnings rising 15.5% in 2026 after an estimated 13% gain in 2025. 6
For now, the market’s first session of 2026 delivered little in the way of a clean trend. Investors will be watching whether chips and other AI-linked names can keep leading without a pullback in consumer shares, as rate expectations and tariff headlines set the tone for risk appetite.
