On the first trading day of 2026, S&P futures experienced an uptick, with the technology sector aiming to capitalize on the momentum it generated in the previous year. Futures for the Dow Jones Industrial Average increased by 188 points, reflecting a rise of 0.4%. S&P 500 futures increased by 0.6%, while Nasdaq-100 futures rose by 1.1%.

Nvidia experienced an increase of over 1% in the premarket, whereas Palantir Technologies saw a rise of 2.8%. Both companies associated with artificial intelligence experienced significant gains in 2025, with increases of 38.9% and 135%, respectively. Other technology stocks, including Apple, Alphabet, and Microsoft, experienced an upward movement in trading.

Technology drove the overall market to significant increases in 2025, as investors persistently flocked to the artificial intelligence sector. The S&P 500 experienced a 16.4% increase last year, signifying its third consecutive annual rise. The Nasdaq Composite experienced a notable increase of 20% last year, while the Dow saw a rise of nearly 13%. The three benchmarks reached unprecedented levels last year. “It was a strong year overall thanks to continued economic growth, optimism around AI, and more central bank rate cuts,” noted Deutsche Bank strategists. “However, those headline gains concealed significant volatility, particularly in April when the Liberation Day tariff announcements triggered the fifth largest two-day decline for the S&P 500 since World War II.”

Strategists anticipate further advancements for the U.S. stock market in 2026. Reports indicates that the average target for the S&P 500 for the year stands at 7,629, suggesting an upside potential of 11.4%. Tech stocks commenced the year with robust performance, capitalizing on the momentum established in 2025. Nvidia shares experienced an increase of over 1%, whereas Palantir saw a rise of 1.3%. The SPDR Technology Select Sector ETF experienced a gain of 1.3% prior to the market opening.