Dow Surges Amidst Market Fluctuations as Chip Stocks Shine

The Dow closed higher on Friday, starting 2026 on a positive note, aided by gains in stocks like Nvidia and Intel. While the Dow recorded notable gains, S&P 500 and Nasdaq faced pressure from losses in consumer discretionary stocks. Analysts highlight elevated risks for the indices in 2026.

The Dow Jones Industrial Average ended Friday on a high note, breaking a four-day losing streak and marking a positive start to 2026. Strong performances by chip makers, particularly Nvidia and Intel, were pivotal, although Wall Street's other major indexes, the S&P 500 and Nasdaq, struggled to maintain solid gains.

Despite the upward movement in industrials and utilities, consumer discretionary stocks, which include giants like Amazon and Tesla, saw declines. Tesla's slip followed a consecutive annual drop in sales. Preliminary data showed the S&P 500 gaining modestly while the Nasdaq registered a small loss for the day, highlighting a mixed market sentiment.

Looking ahead, market analysts emphasize potential risks to index levels in the coming year, with the Federal Reserve's monetary policy trajectory poised to influence global markets. Additionally, tariff policies from the Trump administration remain a critical factor, particularly affecting sectors like furniture retail.

(With inputs from agencies.)