The Dow and S&P 500 indexes ended higher on Friday, starting 2026 by snapping a four-day losing streak, helped by gains in chip makers Nvidia NVDA.O , Intel <INTC.O> and Boeing. In 2025, the Dow, the S&P 500 and the Nasdaq all notched double-digit gains, their third straight year in the green, a run last seen during 2019-2021. Chip stocks provided a boost on Friday, with the Philadelphia SE Semiconductor index .SOX up 4%. Industrials .SPLRCI and utilities .SPLRCU also gained. Caterpillar CAT.N and Boeing BA.N rose 4.5% and 4.9%, boosting the Dow.
While chip stocks rallied, several market heavyweights such as Apple AAPL.O and Microsoft MSFT.O fell to keep gains in check on the S&P 500 and Nasdaq. The S&P 500 and the Nasdaq were also pressured by losses in consumer discretionary stocks including Amazon AMZN.O . Tesla TSLA.O also slid 2.6% after annual sales fell for a second year.
The Dow Jones Industrial Average .DJI rose 319.10 points, or 0.66%, to 48,382.39, the S&P 500 .SPX gained 12.97 points, or 0.19%, to 6,858.47 and the Nasdaq Composite .IXIC lost 6.36 points, or 0.03%, to 23,235.63.
Smaller stocks, which have struggled in recent days, also rallied and the Russell 2000 rose 1.1% to snap a four-day streak of declines.” Recent selling had dashed expectations for a “Santa Claus rally” in which markets tend to get a late boost over the last five trading days of December and the first two of January, according to the Stock Trader’s Almanac.
The Federal Reserve’s monetary policy trajectory will set the tone for global markets in 2026, after recent economic data and expectations of a new dovish Fed chair prompted investors to price in further reductions. A key highlight for January will be next week’s labor market data, especially after Powell, at the central bank’s December meeting, cautioned against further interest rate cuts until there was more clarity on jobs.
Wall Street had made a stellar comeback in 2025 from April’s lows when the President’s ‘Liberation Day’ tariffs sparked a meltdown in global markets, sent investors away from U.S. stocks and threatened growth by clouding the interest rate outlook. Possible tariff surprises from the White House will be on the radar, especially after the President signed a proclamation to delay increases in tariffs for upholstered furniture, kitchen cabinets and vanities for another year.
Shares of furniture retailers Wayfair W.N , Williams-Sonoma WSM.N and RH RH.N ended 6%, 5% and almost 8% higher, respectively.
Advancing issues outnumbered decliners by a 2.01-to-1 ratio on the NYSE. There were 236 new highs and 95 new lows on the NYSE. On the Nasdaq, 2,978 stocks rose and 1,818 fell as advancing issues outnumbered decliners by a 1.64-to-1 ratio. The S&P 500 posted 9 new 52-week highs and 9 new lows while the Nasdaq Composite recorded 54 new highs and 79 new lows. Volume on U.S. exchanges was 15.92 billion shares, compared with the 15.87 billion average for the full session over the last 20 trading days.
Reporting by Purvi Agarwal and Nikhil Sharma in Bengaluru and Saeed Azhar in New York; Editing by Krishna Chandra Eluri and David Gregorio.
(c) Copyright Thomson Reuters 2026.