Wall Street reached new records on Tuesday, driven by broad gains led by technology stocks. The S&P 500 rose 42.77 points, or 0.6%, to 6,944.82, setting a record on just the third trading day of the year. The Dow Jones Industrial Average rose 484.90 points, or 1%, to 49,462.08, hitting a record for a second-straight day. The Nasdaq composite rose 151.35 points, or 0.6%, to 23,547.17.
Technology stocks led the gains, with Amazon surging 3.4% and Micron Technology jumping 10%. Microsoft rose 1.2%, while Nvidia, a major player in the tech sector, wavered throughout the day and finished 0.5% lower.
Other sectors also gained ground, including health care companies, retailers, and industrial firms. Roughly three out of every four stocks in the benchmark S&P 500 index rose. Small company stocks outpaced their larger counterparts, with the Russell 2000 jumping 1.4% and now just below its record set in December.
Artificial Intelligence Drives Demand for Data-Storage Hardware
The tech sector's gains were driven in part by artificial intelligence (AI) advances, which have been propelling the market to a series of records. Companies focused on AI, such as Sandisk, are being closely watched, with Sandisk surging 27.6% for the market's biggest gain. The stock's value has jumped more than 800% since spinning off from Western Digital last February.
Investors Watch for Updates on AI Technology
Investors will be watching companies for any updates that could shed more light on the big corporate investments in AI technology, particularly during the industry's annual CES trade show in Las Vegas. AI advances helped propel the broader market to a series of records in 2025, and investors are eager to see how companies are leveraging AI to drive growth.
Economic Updates This Week
Wall Street is preparing for several updates on the U.S. labor market this week, along with reports on the services sector and consumer sentiment. The updates will help paint a clearer picture of how vital parts of the economy closed out 2025 and the direction they could take in 2026.
On Wednesday, the U.S. government will release its report on job openings for November. Weekly unemployment data will be released on Thursday, and the broader monthly employment report for December will be released on Friday. The Institute for Supply Management will also release its latest services sector update on Wednesday, while the University of Michigan will release its latest consumer sentiment survey on Friday.
Federal Reserve's Next Move
The Federal Reserve will be analyzing all of that data and more ahead of its next meeting in late January. The central bank cut its benchmark interest rate three times late in 2025 to try and counter the economic impact of a softer jobs market. Wall Street expects the Fed to hold interest rates steady at its January meeting.
Market Wrap-up
The price of benchmark U.S. crude oil fell 2% to $57.13 per barrel in other markets. Gold prices rose 1%, and silver prices rose 5.7%. European markets went up, and investors are keeping an eye out for any news about how global events will affect the economy.
AI advances, corporate earnings, and economic news are just a few of the things that are driving the market's gains. Investors will be on the lookout for signs of long-term growth and stability in the market as the year goes on.
