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The broad market index gained 0.7%, and the Nasdaq Composite advanced 1.3%. The Dow Jones Industrial Average traded 50 points higher, or 0.1%.
Friday’s gain marks a reversal from the first-day trading trend of the last few years. The S&P 500 finished lower on the first day of trading for each of the last three years. Going back to the 1950s, there is no discernible trend, with the first day finishing positive about 48% of the time, according to Bespoke Investment Group.
Nvidia shares rose more than 3%. The artificial intelligence-related name was a big winner in 2025, rising about 39%. Fellow tech stocks Apple and Alphabet climbed 2% each.
Tesla shares were higher as well despite the company’s fourth-quarter deliveries missing analyst estimates. To be sure, the numbers were better than Wall Street whisper numbers expecting an even bigger decline.
Elsewhere, shares of online home goods company Wayfair and luxury furniture retailer RH jumped more than 5% and 6%, respectively, after President Donald Trump on New Year’s Eve postponed tariff increases on upholstered furniture, kitchen cabinets and vanities for a year. The order specifically delays a 30% duty on upholstered furniture and 50% levy on kitchen cabinets and vanities, keeping in place a 25% tariff on those goods that was imposed back in September.
Tech was the best trade of 2025, leading the broader market to sharp gain as investors continued to pile into AI names. The S&P 500 gained more than 16% last year, marking its third straight annual advance. The Nasdaq Composite jumped more than 20% last year, and the Dow climbed around 13%. The three benchmarks hit record highs last year.
“It was a strong year overall thanks to continued economic growth, optimism around AI, and more central bank rate cuts,” Deutsche Bank strategists wrote. “However, those headline gains masked huge volatility, particularly in April when the Liberation Day tariff announcements sparked the 5th biggest two-day slump for the S&P 500 since WWII.”
Wall Street strategists expect more gains for the U.S. stock market in 2026. The CNBC Market Strategist Survey shows the average S&P 500 target for the year is 7,629, which implies upside of 11.4%.