NEW YORK, Jan 2, 2026, 16:31 ET — After-hours
- The Dow rose 311.99 points, or 0.67%, to 48,383.22; the S&P 500 edged up 0.18% and the Nasdaq slipped 0.02%.
- Chipmakers and industrials led, while Tesla fell after reporting a second straight annual drop in sales.
- Traders now turn to next week’s U.S. jobs report and inflation data, with big banks set to kick off earnings season.
The Dow Jones Industrial Average rose 311.99 points, or 0.67%, to 48,383.22 at Friday’s close, snapping a four-day losing streak on the first trading day of 2026. The S&P 500 added 0.18% while the Nasdaq Composite dipped 0.02%, according to preliminary data. Chip stocks and industrials lifted the Dow, and furniture retailers advanced after the White House said President Donald Trump signed a proclamation delaying planned tariff increases on upholstered furniture, kitchen cabinets and vanities for another year; Tesla slid after reporting a second straight annual fall in sales.
The early split matters because the market is entering January after a third straight year of gains, but investors remain torn over whether 2026 brings a “soft landing” or a sharper slowdown. Friday’s Dow outperformance versus the Nasdaq pointed to rotation into economically sensitive names, not a broad-based risk-on move.
Bond markets kept pressure on rate-sensitive valuations. The 10-year U.S. Treasury yield rose about 4 basis points — a basis point is 0.01 percentage point — to around 4.195%, with shorter-dated yields also higher as traders looked ahead to fresh employment data for signals on growth and Federal Reserve policy.
In equities, chip names helped steady the market after a midday wobble. Nvidia and Intel were among the stocks underpinning the rebound, while Caterpillar and Boeing powered much of the Dow’s advance.
The broader indexes faced drag from consumer discretionary stocks. Amazon weighed on the S&P 500 and Nasdaq, and Tesla’s drop followed its update showing annual sales fell for a second year, a rare negative in a sector investors often treat as a growth barometer.
The close also extended a theme from late December: the market has struggled to find the seasonal lift traders call the Santa Claus rally, typically the last five trading days of December plus the first two of January. The absence of that bounce has kept attention on macro catalysts, not momentum.
Policy risk stayed on the tape. The tariff delay for household-related imports helped lift furniture-linked stocks, but investors said they remain wary of fresh surprises on trade that could reprice inflation expectations and corporate guidance.
Before the next session, the focus turns quickly to a dense January calendar. The U.S. employment report due Jan. 9 is expected to show payrolls rose 55,000 in December, based on a Reuters poll, with the unemployment rate at 4.6%; strategists also point to the market’s narrow range near late-October levels — “The market is looking for direction,” said Matthew Maley, chief market strategist at Miller Tabak. Reuters
How investors read the jobs data matters as much as the headline. A firmer report can push rate-cut expectations out, while a weaker print can revive recession worries even if it increases the odds of easier policy.
Traders will also be watching inflation, with the U.S. consumer price index due Jan. 13. Fed funds futures — derivatives that reflect expectations for Fed rate moves — have recently implied little chance of a cut at the late-January meeting but close to a 50% probability of a quarter-point reduction in March, Reuters reported.
Earnings season adds another test. JPMorgan is scheduled to report on Jan. 13 along with other major banks that week, while analysts tracked by LSEG IBES are looking for S&P 500 earnings growth to accelerate into 2026 — a forecast that leaves little room for policy or macro shocks to hit margins or demand.
