The major averages are mixed to start the new year after opening higher this morning. The Dow Jones Industrial Average rose 50 points after rising over 200 points this morning. The S&P 500 is lower after being up a percent this morning. The Nasdaq is negative after jumping over 300 points this morning.
2026 rally starts in the same place as the 2025 rally, the tech and AI space. Chip stocks are performing well led by Micron up 7% thanks to strong demand and an upgrade. Bernstein raised its target for the stock to $330 from $270. Intel is up 6%, AMD is up 3%. Nvidia is up a percent. The chip equipment makers are higher along with computer hardware. Software and the large cap techs, however, are all in the red, dragging the Nasdaq into the red. Apple was downgraded today while Tesla reported weaker than expected auto sales.
Industrials are performing well lifting the Dow. Boeing is up nearly 3% as more investors and analysts turn more bullish on the company.
Interest rates are higher to start the year as investors focus on the economic outlook and the prospects for further rate cuts. The yield on the 10-year Treasury is up 3 basis points to 4.18%. The yield on the 2-year Treasury modestly higher at 3.47%. The 30-year Treasury yield rose more than 3 basis points to 4.86%.
Oil is lower after a dismal 2025 as the crude price dropped 20% last year, the worst year in over four years. Gold is quiet after a great 2025. Silver is up 2% after rising over 100 percent in 2025. Crypto currencies are performing well up over 2% or more to start the new year. 2025 was a negative year for most of the crypto currencies.
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