Dow and S&P Rise; Nasdaq Falls; Key Movers: Nvidia, Tesla, Intel, NIO
The stock market displayed mixed results as the new year commenced. Both the Dow Jones Industrial Average and the S&P 500 saw positive movements, while the Nasdaq Composite faced a decline.
Market Performance Overview
- Dow Jones Industrial Average: Increased by 317 points, or 0.7%
- S&P 500: Rose by 0.2%
- Nasdaq Composite: Closed slightly below breakeven
The Dow and S&P broke their four-day losing streaks, while the Nasdaq extended its downward trajectory to five consecutive days. This marks a notable shift, as the Nasdaq last experienced a similar five-day decline in early 2025.
Sector Performance
On Friday, stock market breadth was generally solid. Several sectors recorded gains:
- Energy
- Industrials
- Materials
- Utilities
Conversely, the following sectors lagged behind:
- Consumer Discretionary
- Communication Services
- Consumer Staples
Technology Sector Insights
Technology stocks exhibited a mixed performance. Chip manufacturers experienced significant gains, while software stocks struggled to showcase strength as the year began.
Jeffrey Favuzza, a vice president of equities trading at Jefferies, commented on the software market. He noted that there hasn’t been a clear data point to justify the current movement in software stocks. It appears that liquidity may be shifting from these stocks towards those associated with artificial intelligence, especially as anticipation builds for the upcoming CES trade show next week.
