Stock Market Update

[BRIEFING.COM] The stock market made some notable intraday moves in the first session of 2026, with the S&P 500 (+0.2%), Nasdaq Composite (flat), and DJIA (+0.7%) finishing the session mostly higher. 

Mega-cap and tech names opened to pronounced gains, sending the tech-heavy Nasdaq Composite over 1.0% higher this morning. Those gains were reversed in short order, with the mega-cap's move lower sending the major averages into negative territory. 

The broader market trended higher throughout the session, with the DJIA steadily improving as a result. Still, losses across many of the market's largest names prevented further growth at the index level, as evidenced by the outperformance of the S&P 500 Equal Weighted Index (+0.7%) over the market-weighted S&P 500 (+0.2%). 

The top-weighted information technology sector finished flat after an early gain that exceeded 1.5%. Microsoft (MSFT 472.94, -10.68, -2.21%) and Palantir Technologies (PLTR 167.86, -9.89, -5.56%) were notable laggards, though strength across chipmaker names prevented further losses. NVIDIA (NVDA 188.85, +2.35, +1.26%) was the "magnificent seven" standout, while Micron (MU 315.42, +30.01, +10.51%) and Intel (INTC 39.38, +2.48, +6.72%) finished even higher, pushing the PHLX Semiconductor Index (+4.0%) to a sturdy gain. 

Mega-cap pressure would see the consumer discretionary sector (-1.1%) close with the widest loss as Tesla (TSLA 438.07, -11.65, -2.59%) and Amazon (AMZN 226.50, -4.32, -1.87%) slid further into negative territory. Tesla faced pressure after its Q4 production and deliveries report, which showed a 15.7% year-over-year drop in deliveries to 418,000 vehicles.

The Vanguard Mega Cap Growth ETF would finish the day 0.5% lower. 

The communication services (-0.4%) and consumer staples (-0.2%) sectors were the only other sectors to finish lower. 

Meanwhile, eight S&P 500 sectors finished higher, with several notable performances. 

The energy sector (+2.1%) finished with the widest gain despite crude oil settling today's session $0.06 lower (-0.1%) at $57.34 per barrel. OPEC+ is not expected to make any changes to its output plans during this Sunday's policy meeting.

The industrials sector (+1.9%) finished with a similar gain, supported by strength in its construction names such as Comfort Systems (FIX 1003.51, +70.22, +7.52%) and Caterpillar (CAT 598.48, +25.61, +4.47%) and aerospace and defense names such as Boeing (BA 227.71, +10.59, +4.88%). 

The materials (+1.5%) and utilities (+1.2%) sectors also captured gains wider than 1.0%. 

Outside of the S&P 500, the small-cap Russell 2000 (+1.0%) and S&P Mid Cap 400 (+1.3%) decidedly outperformed today, steadily trading higher throughout the session. 

While there were plenty of notable stock- and sector-specific moves in play today, the market remains searching for its next directional driver. Mega-cap weakness limited gains at the index level, though a strong performance from chipmakers reflects continued optimism in the AI trade, which was a driving force of strength in 2025. 

U.S. Treasuries started 2026 with modest losses in the 5-year note and longer tenors, while the short end resisted the pressure, leaving the 2-year note near its closing level from Wednesday. The 2-year note yield settled finished unchanged at 3.48% (unchanged for the week), and the 10-year note yield settled up two basis points at 4.19% (+5 basis points this week). 

• S&P Mid Cap 400: +1.3% YTD
• Russell 2000: +1.1% YTD
• DJIA: +0.7% YTD
• S&P 500: +0.2% YTD
• Nasdaq Composite: flat YTD

Reviewing today's data:

• The S&P Global U.S. Manufacturing PMI hit 51.8 in the final reading for December, unchanged from the preliminary reading and down from 52.2 in November.