New York – A strong performance led by technology stocks propelled Wall Street to new heights on Tuesday, continuing a trend reminiscent of the previous year when major tech companies were significant drivers of market growth.
Technology was at the forefront of these gains, but several other sectors also contributed positively, including healthcare, retail, and industrial firms. Notably, around three-quarters of the stocks in the S&P 500 index recorded gains.
The S&P 500 climbed 42.77 points, or 0.6%, finishing at 6,944.82, marking a record on just the third trading day of the year. The Dow Jones Industrial Average increased by 484.90 points, or 1%, to reach 49,462.08, achieving a record for the second consecutive day. Meanwhile, the Nasdaq composite rose 151.35 points, or 0.6%, to close at 23,547.17.
Small-cap stocks also outperformed their larger counterparts, with the Russell 2000 index gaining 1.4%, positioning it just shy of its record set in December.
The technology sector was particularly noteworthy, with Amazon, a giant in both retail and tech, surging 3.4%. Its substantial market valuation helped steady losses seen in other areas, including a 1.8% drop in Apple shares. Micron Technology posted a significant increase of 10%, further boosting the market, while Microsoft saw a modest rise of 1.2%. Nvidia, a key player in market movements, experienced volatility but ultimately closed 0.5% lower.
Sandisk experienced an impressive gain of 27.6%, marking the largest increase for the day. Since separating from Western Digital last February, its stock has ascended more than 800%, fueled by surging demand for data-storage hardware driven by advancements in artificial intelligence. Western Digital also saw a respectable increase of 16.8%.
Technology firms focusing on artificial intelligence are currently under close observation during the annual CES trade show in Las Vegas. With AI capabilities helping to drive the market to record levels in 2025, investors are keenly awaiting any announcements that could reveal insights into major corporate investments in the technology.
In the commodities market, the price of U.S. crude oil dipped 2% to $57.13 per barrel after a rise driven by geopolitical events. Meanwhile, Brent crude, the international benchmark, fell 1.7% to $60.70 per barrel.
Gold prices increased by 1%, and silver saw a notable rise of 5.7%. Historically considered safe-haven assets, these metals have reached record prices in the past year amid ongoing economic uncertainties.
European markets also experienced gains, contributing to a broadly positive global market atmosphere.
As Wall Street anticipates more news on the U.S. labor market, several key reports are set to be released this week, including job openings data for November, weekly unemployment figures, and the broader employment report for December. The Institute for Supply Management will publish its latest update on the services sector, alongside the University of Michigan’s consumer sentiment survey.
These reports are crucial as they provide insights into the economic landscape’s final quarter of 2025 and potential trajectories heading into 2026. The Federal Reserve will be analyzing this data ahead of its meeting later in January, where it is projected to maintain current interest rates amidst concerns over inflation exceeding the 2% target.
The market’s recent performance underlines a resilient economy amidst uncertainty, providing a cautiously optimistic outlook for investors as they navigate the upcoming economic indicators.