Trader Peter Tuchman wears 2026 glasses as traders work on the floor of the New York Stock Exchange as the opening bell rings on December 31, 2025.
Timothy A. Clary | AFP | Getty Images
The new year begins much like the old.
The first trading day of 2026 began on Friday, with the technology industry leading the way, just like last year. Magnificent Seven shares are rising across the board, with Nvidia and Alphabet each up more than 1% in early trading. Semiconductor stocks were up as a group, with Broadcom up more than 1.5%.
As in the past three years, artificial intelligence was the best trade in 2025, but it stumbled towards the finish line as investors, wary of high valuations, began pivoting to other groups. The Nasdaq Composite Index, known for its heavy exposure to tech companies, ended last year with two straight months in the red.
This rotation had many strategists nervous that tech stocks would have an even harder climb in 2026 as traders started demanding companies justify their huge AI spending with profitable applications. Many investors have called for cyclical companies to wrest market leadership from technology in 2026, widening the reach of the stock market. They saw it as a healthy development to extend the bull market.
It’s too early, but for now, investors in 2026 will stick with their favorite technology stocks.
“Tech stocks are something to keep an eye on,” said Nancy Tengler, head of investments at Laffer Tengler Investments. “I think they’ll be around for at least another year.” He added that, like last year, he intends to be selective in buying the dip.
“Because the way we see it, winners keep winning,” she said.
AI stocks such as Palantir, which rose 135% in 2025, and Oracle, which rose 17% last year amid choppy moves, also rose in premarket trading.
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Palantir, 1 day
Wall Street expects the S&P 500 index to rise about 11% in 2026, according to the 2026 CNBC Market Strategist Survey. While this is a significant increase, it still falls short of the gains of the previous three indexes.
The outperformance of tech companies at the beginning of the new year suggests there is still room in the AI industry, at least for now.
