S&P 500 Kicks Off 2026 with Chip-Fueled Rally
Chipmakers led the S&P 500 to a record close in the first trading session of 2026, as investors bet the AI boom still has legs.
New York — The first opening bell of 2026 had barely faded when chipmakers snatched the spotlight, pushing the S&P 500 to a record-setting close and handing Wall Street the jolt of optimism it had been craving since last quarter’s wobble.
Chip Stocks Power the Charge
Nvidia, Advanced Micro Devices and a handful of semiconductor suppliers surged more than 4 % across the board after fresh data showed December sales of AI-capable servers topped forecasts. Traders who spent the holidays debating whether the sector had overheated suddenly found themselves scrambling to cover short positions.
“The narrative flipped overnight,” said Priya Malhotra, senior equity strategist at Atlantic Crest. “We went from fears of an inventory glut to evidence that demand for high-performance chips is actually accelerating.”
Broader Market Follows
The rally bled into every corner of the index. All eleven S&P sectors finished higher, led by technology and communication services. Energy shares, laggards for most of 2025, even joined the party as crude futures climbed above $80 a barrel on colder weather forecasts in Europe.
- S&P 500 closed up 1.3 % at 5,021.84, its first-ever finish above 5,020.
- Nasdaq Composite gained 1.7 %, while the Dow added 312 points.
- Trading volume hit 11.8 billion shares, the busiest New Year’s session in two decades.
What Happens Next?
Attention now turns to Friday’s jobs report. Economists expect employers added 185,000 positions in December, enough to keep unemployment anchored at 4.2 %. A blowout number could reignite worries about sticky inflation and higher-for-longer rates; a miss might cement bets on Federal Reserve rate cuts by spring.
“Today’s move shows investors are willing to price in a soft landing,” said Marcus Thorne, markets editor at Investor Daily. “But one data point doesn’t make a trend; we need confirmation that corporate earnings can stay resilient if borrowing costs remain elevated.”
For now, though, the bulls have the floor. After a rocky December that shaved 2 % off the index, the first-day pop offers a symbolic reset—proof, perhaps, that the animal spirits driving the AI revolution still have room to run.