US Equities Edge Higher in Choppy Start to 2026 – US Market Wrap

US stocks edged higher on Friday as investors began 2026 on a cautious note following a year of strong equity gains, while also keeping a close watch on rising Treasury yields.

The S&P 500 closed up 0.2% after oscillating between gains and losses earlier in the session. The Nasdaq 100 slipped 0.2%, with both benchmarks weighed down by weakness in technology shares. Tesla fell after reporting fourth-quarter deliveries that missed the average analyst estimate, while Amazon and Microsoft also declined.

There were pockets of strength, with some semiconductor equipment makers and other chip stocks rallying, including Nvidia and Micron Technology. Shares of energy companies were mostly higher, alongside gains in industrials and utilities.

The uneven start contrasted with the upbeat tone struck by many strategists at the end of 2025, when tech and AI helped drive the S&P 500 to a third consecutive year of double-digit gains. Forecasts point to further upside in 2026, even as concerns linger over stretched valuations and the risk that heavy capital spending may not deliver expected returns.