economy
January 2, 2026
The 2026 stock market is looking a lot like the bifurcated market of 2025
A look inside the S&P 500 shows a major division, with five sectors higher, led by industrials, and six sectors lower, led by consumer discretionary.
TL;DR
- The stock market opened 2026 showing a split performance, with five S&P 500 sectors higher and six lower.
- This division is a continuation of a trend where traders are rotating out of nervous tech stocks into other groups.
- While some strategists expect a broadening of the market led by economically sensitive companies, others express nervousness about high valuations and earnings growth expectations.
- Semiconductor stocks, including Nvidia, Micron, and AMD, were a bright spot within the tech sector.
- The Nasdaq Composite ended 2025 with two consecutive months of losses due to its heavy tech exposure.
- Wall Street strategists surveyed by CNBC anticipate an 11% climb for the S&P 500 in 2026, a slower pace than recent years.
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