Meet the 2026 stock market. It’s the same AI-reliant market of 2025

The new year starts much like the old one.

The first trading day of 2026 started on Friday, led by technology, like last year. Magnificent Seven shares are all on the rise Nvidia And Alphabet Each is up more than 1% in early trading. Semiconductors are rising as a group broadcom It gained over 1.5%.

Artificial intelligence was the top trade in 2025, as it has been in the past three years, but it stumbled toward the finish line as investors wary of high valuations began to turn to other groups. Nasdaq Composite, known for its intense interest in technology companies, closed last year with losses for two consecutive months.

The rotation has left many strategists uneasy that tech stocks will find it harder to make an uphill climb in 2026, as traders begin demanding that companies justify big AI spends with profitable applications. Many investors have called for an expansion of the stock market, with companies more sensitive to the economic cycle taking over from technology to lead the market in 2026. They saw this as a healthy development to expand the bull market.

It’s still early, but so far 2026 investors are staying in their favorite tech stocks.

“Tech names are where you want to focus, and I think for at least another year,” said Nancy Tengler, chief investment officer at Laffer Tengler Investments. He added that he plans to selectively buy any dips, as he did last year.

“Because in our view, winners will continue to win,” he said.

AI stocks were also higher in premarket trading, such as Palantir, which gained 135% in 2025, and Oracle, which gained 17% in a volatile move last year.

Wall Street predicts the S&P 500 will rise roughly 11% in 2026, according to the 2026 CNBC Market Strategist Survey; That’s a respectable increase that still lags behind the progress of the bottom three.

Tech’s outperformance to start the new year shows that the AI ​​business still has legs, at least for now.