Wall Street's Shaky Start to 2026

The new year began with a bumpy ride for Wall Street. After a strong 2025, stocks couldn't keep up the momentum. Tech stocks, which had been leading the charge, couldn't sustain their early gains. The S&P 500, which had surged over 16% in 2025, dipped slightly. The Nasdaq also fell, while the Dow managed a small gain. Tech giants like Nvidia and Broadcom saw gains, but drops from Alphabet and Microsoft balanced things out. These big tech companies have a huge impact on the market. Their stock values can swing the market up or down. This is partly due to their focus on artificial intelligence and the demand for tech like computer chips.Meanwhile, Tesla saw a drop after reporting falling sales for the second year in a row. Over in Asia, Alibaba and Baidu saw big gains. Baidu's plan to spin off its AI chip unit boosted its stock. Oil prices slipped, but gold saw a small gain. Treasury yields stayed steady, with the 10-year yield slightly higher and the 2-year yield slightly lower. Looking ahead, Wall Street has a busy week coming up. Key economic updates will give a clearer picture of the U. S. economy. The Fed has a tough job balancing inflation and a weakening job market. After cutting rates three times in 2025, the Fed is likely to hold steady in January. The economy is facing challenges like stubborn inflation and trade tensions. Consumers are feeling the pinch. The Fed's cautious approach reflects these uncertainties.