Wall Street reaches more records on gains by Big Tech
[January 07, 2026] By
DAMIAN J. TROISE
NEW YORK (AP) — Broad gains led by technology stocks pushed Wall Street
to more records on Tuesday.
The gains mirror much of the action from the previous year, when big
technology stocks often drove the market to a series of records.
Technology stocks led the gains, but several other sectors assisted in
the broader market's advance. Health care companies, retailers and
industrial firms broadly gained ground. Roughly three out of every four
stocks in the benchmark S&P 500 index rose.
The S&P 500 rose 42.77 points, or 0.6%, to 6,944.82, setting a record on
just the third trading day of the year. The Dow Jones Industrial Average
rose 484.90 points, or 1%, to 49,462.08, hitting a record for a
second-straight day. The Nasdaq composite rose 151.35 points, or 0.6%,
to 23,547.17.
Small company stocks outpaced their larger counterparts. The Russell
2000 jumped 1.4% and is now just below its record set in December.
The most notable action remained in the tech sector. Amazon, which has
reach into both retail and technology, surged 3.4%. It is one of the
most valuable companies in the world and its outsized stock valuation
helped counter losses elsewhere in the market, including a 1.8% loss
from Apple.
Micron Technology surged 10%, also helping to lift the market. Microsoft
rose 1.2%
Nvidia, which is often the biggest force behind the market's direction,
wavered throughout the day and finished 0.5% lower.
Sandisk surged 27.6% for the market's biggest gain. The stock's value
has jumped more than 800% since spinning off from Western Digital last
February. The gains have been driven by artificial intelligence and the
resulting demand for data-storage hardware. Western Digital rose 16.8%.
Technology companies, especially those focused on artificial
intelligence, are being closely watched this week during the industry's
annual CES trade show in Las Vegas.
AI advances helped propel the broader market to a series of records in
2025. Investors will be watching companies for any updates that could
shed more light on the big corporate investments in AI technology.
The price of benchmark U.S. crude oil fell 2% to $57.13 per barrel,
pulling back from sharp gains a day prior when the market reacted to
U.S. forces capturing Venezuelan President Nicolás Maduro in a weekend
raid. The price of Brent crude, the international standard, fell 1.7% to
$60.70 per barrel.
Treasury yields rose in the bond market. The yield on the 10-year
Treasury climbed to 4.16% from 4.15% late Monday. The yield on the
two-year Treasury, which moves more closely with expectations for what
the Federal Reserve will do, rose to 3.46% from 3.45% late Monday.
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 Gold prices rose 1% and silver
prices rose 5.7%. Such assets are often considered safe havens in
times of geopolitical turmoil. The metals have notched record prices
over the last year amid lingering economic concerns brought on by
conflicts and trade wars.
Markets in Europe gained ground.
Outside of company announcements, Wall Street is preparing for
several updates on the U.S. labor market this week, along with
reports on the services sector and consumer sentiment. They will
help paint a clearer picture of how vital parts of the economy
closed out 2025 and the direction they could take in 2026.
On Wednesday, the U.S. government will release its report on job
openings for November. The October report showed that U.S. job
openings had barely budged. Weekly unemployment data will be
released on Thursday and the broader monthly employment report, for
December, will be released on Friday.
The Institute for Supply Management will also release its latest
services sector update on Wednesday, while the University of
Michigan will release its latest consumer sentiment survey Friday.
They are both widely monitored because the services sector makes up
the bulk of the U.S. economy, and consumer sentiment has been shaky
under the weight of higher prices and economic uncertainty.
The Fed will be analyzing all of that data and more ahead of its
next meeting in late January. The central bank cut its benchmark
interest rate three times late in 2025 to try and counter the
economic impact of a softer jobs market. Lower interest rates on
loans can help bolster economic activity.
Cutting rates also risks fueling inflation at a time when it remains
stubbornly above the Fed's 2% target and could potentially reheat.
Rising inflation could counter any benefit from lower interest rates
and weigh more heavily on the economy.
Wall Street expects the Fed to hold interest rates steady at its
January meeting.
___
AP business writers Elaine Kurtenbach and Matt Ott contributed to
this report.
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