Wall Street joins global markets in upbeat start to 2026

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NEW YORK (AP) — Stocks rose in morning trading on Wall Street Friday, joining global markets to kick off a new year on an upbeat note.

The S&P 500 rose 0.7%. The benchmark index is coming off a gain of more than 16% in 2025.

The Dow Jones Industrial Average rose 42 points, or 0.1%, as of 10:03 a.m. Eastern. The Nasdaq composite rose 1.3%.

Markets in Europe and Asia also made strong gains. Indexes in Britain and South Korea hit records.

The gains are helping trim some of the broader weekly losses for the market, which is closing a shortened holiday week. Markets were closed Thursday for New Year’s Day.

Technology stocks were leading the market higher, especially companies with a focus on artificial intelligence, continuing the trend that pushed the broader market to records in 2025.

Nvidia jumped 2.8% and was the biggest force pushing the market higher. Apple jumped 2% and Google's parent company, Alphabet, rose 2%. They are among the most valuable companies in the world and their outsized valuations give them more influence on the market's direction.

Technology companies have been a major focus because of advancements in artificial intelligence technology and the potential for growth within the sector. Wall Street has been betting that demand for computer chips and other items needed for data centers will help justify the big investments from technology companies and their pricey stock values.

Tesla rose 0.8% despite reporting falling sales for a second year in a row.

E-commerce giant Alibaba climbed 4.3% and Baidu, maker of the Ernie chatbot, jumped 9.4% in Hong Kong after it said it plans to spin off its AI computer chip unit Kunlunxin, which would list shares in Hong Kong early in 2027. The plan is subject to regulatory approvals.

Crude oil prices slipped. Prices for U.S. crude oil fell 1.2% to $56.73 per barrel. The price of Brent crude, the international standard, fell 1.2% to $60.13 per barrel.

Gold prices kicked off the new year with more gains. The price of gold rose 0.7%.

Treasury yields held steady in the bond market. The yield on the 10-year Treasury rose to 4.18% from 4.17% late Wednesday. The yield on the two-year Treasury, which moves more closely with expectations for what the Federal Reserve will do, held steady at 3.48% from late Wednesday.

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AP business writer Elaine Kurtenbach contributed to this report.