The New York stock market exhibited strong volatility from the first trading day of 2026, opening with an unstable trend. Although some indices rebounded after the previous day's decline, repeated fluctuations ensued due to high-level pressure and continued profit-taking.
As of 10:17 AM local time on January 2nd, the Dow Jones Industrial Average fell 37.54 points (0.08%) to 48,025.75. On the other hand, the S&P 500 rose 16.49 points (0.24%) to 6,861.99, and the Nasdaq Composite rose 111.83 points (0.48%) to 23,353.82, showing strong performance. However, intraday movements were volatile, with gains narrowing and losses occurring frequently.
Previously, the New York stock market had fallen for four consecutive trading days, dampening investor sentiment. As a result, some investors began buying on dips, driving a rebound in the market in the morning session. However, analysts believe that the rally failed to be sustained due to lingering concerns about recent stock price increases. The Nasdaq index, particularly driven by technology stocks, surged more than 1% after the opening bell before encountering heavy selling pressure, narrowing its gains. The S&P 500 index exhibited a similar pattern.
One of the unsettling factors surrounding this market performance is the question of the sustainability of the artificial intelligence theme. Although AI technologies, exemplified by ChatGPT, have officially gained attention and led the stock market since the end of 2023, the so-called "AI bubble" remains a cause for concern. With investors yet to find the next driving force for an upward trend, they appear to be increasingly wary of currently high-priced stocks and thematic stocks.
Despite this, AI and semiconductor-related stocks remained relatively strong. The Philadelphia Semiconductor Index surged over 3%, with major semiconductor stocks such as Nvidia, Broadcom, TSMC, and AMD also rising. Some stocks saw gains exceeding 7%, becoming the central focus of the market rebound. This is interpreted as indicating that despite the volatility of tech stocks, market expectations for a strong semiconductor industry remain intact.
Another market variable is the recently released US economic indicators. According to S&P Global data, the December 2025 manufacturing purchasing managers' index (PMI) was 51.8, slightly higher than the market expectation of 51.7. This can be seen as a signal that the manufacturing sector is entering an expansion phase, alleviating concerns about an economic slowdown to some extent.
Meanwhile, President Donald Trump's temporary tariff suspension on some home furnishings also boosted stock prices in related sectors. High-end furniture companies RH and Williams-Sonoma, as well as online furniture company Wayfair, all saw gains of 3% to 6% in early trading. European stocks also generally rose on the same day, indicating that global investor sentiment had not significantly weakened.
This trend is likely to evolve in the short term into a tug-of-war between a cyclical rise primarily driven by technology stocks and profit-taking. Especially with the release of key economic indicators and the Federal Reserve's interest rate policy, the stock market's future trajectory may remain unpredictable, requiring investors to remain vigilant.
