US Stocks Inch Higher in Volatile Start to 2026
US stocks edged higher on Friday, as investors started 2026 on cautious footing following a year of strong equity performance while keeping an eye on rising Treasury yields.
The benchmark S&P 500 Index closed up 0.2% after swinging between gains and losses earlier in the session. The Nasdaq 100 was down 0.2%, with both gauges dented by weakness in technology names. Shares of Tesla Inc. fell after the company reported deliveries for the fourth quarter that missed the average analyst estimate, while Amazon Inc. and Microsoft Corp. slid. A Bloomberg measure of Magnificent Seven stocks sank by about 1%.
There were pockets of strength as well, with some semiconductor equipment makers and other chip stocks rallying, including Nvidia Corp. and Micron Technology Inc. Shares of energy companies were mostly higher, along with industrials and utilities.
The mixed start clashed with the optimistic tone most strategists struck at the end of 2025, when tech and AI helped power the S&P 500 to a third year of double-digit gains. Forecasts signal more of the same for 2026 despite lingering wariness over already stretched valuations and fears that vast amounts of capital expenditure could fail to pay off.
Market participants “aren’t necessarily cautious,” said Steve Sosnick, chief strategist at Interactive Brokers. However, “they may be fully invested going into the new year.”
Investors were also watching Treasury yields, which can weigh on stocks if they rise too quickly. The 10-year yield was recently at around 4.19%, approaching its highest level since September.
“Stocks are stumbling out of the gate as interest rates rise to uncomfortable levels,” said Adam Turnquist, chief technical strategist at LPL Financial. A breakout above 4.20% on the 10-year “would generate an upside target near 4.50%,” he added.
Precious metals unwound earlier gains, with gold prices lower and silver up about 1.2%. The dollar was up little changed a basket of currencies. Bitcoin rose 1.6%.
The S&P 500 rose 0.2% as of 4:01 p.m. New York time
The Nasdaq 100 fell 0.2%
The Dow Jones Industrial Average rose 0.7%
Source : Bloomberg.com
