On Tuesday, both the Dow Jones Industrial Average and the S&P 500 touched fresh record highs. The gains were big, with healthcare stocks and smaller technology companies leading the charge. After rising for three days in a row, the Dow is now having its best start to a year since 2003, according to WSJ, citing Dow Jones Market Data.
Wall Street is entering the year with high hopes after three straight years of double-digit gains in stocks. Many investors believe strong company earnings, falling interest rates and a flexible economy could push markets higher once again.
Dow surges past 49,000
The Dow jumped 485 points, or about 1%, to close at 49,462, according to WSJ. The S&P 500 also ended the day at a record, climbing 0.6% and marking its first closing high of the new year. The Nasdaq composite rose 0.6% as well, though it is still below the all-time high it reached back in October.
Victoria Fernandez, chief market strategist at Crossmark Global Investments, told WSJ, the rally reflects growing confidence among investors. She added that a lot of money that had been sitting on the sidelines now appears to be moving back into the market.
January has traditionally been a strong month for stocks, as investors position themselves for the year ahead. Since 1928, the stock market has ended January in positive territory more than 60% of the time, Dow Jones Market Data shows.
Silver and Copper hit new highs
The rally was not limited to stocks. Silver prices climbed to a record level above $80 per troy ounce. Copper prices also reached a new all-time high. The metal crossed $13,000 per ton for the first time and hit a new record.
Investors are now turning their attention to the labor market. New data on job openings is expected on Wednesday, followed by the closely watched monthly jobs report on Friday. These updates could shape market sentiment in the days ahead.
AI boom lifts chip and storage stocks
Tuesday was another big day for companies linked to artificial intelligence. As investment in AI continues to grow, demand for the memory chips and storage systems that power these technologies is rising fast. Flash-memory maker Sandisk stood out as the biggest gainer in the S&P 500, soaring past 28%. Hard-drive companies Seagate Technology and Western Digital also posted strong gains and ranked among the index’s top performers.
What is different this time is where the money is flowing. Instead of only backing the biggest tech giants, investors are now spreading their bets. On Tuesday, healthcare and materials stocks were among the strongest performers in the S&P 500, while several members of the “Magnificent Seven” tech stocks lagged behind.
Among the day’s clear winners were Amazon, Micron Technology, and Broadcom, all of which posted solid gains. Nvidia CEO Jensen Huang unveiled the company’s next-generation AI platform, called Vera Rubin. Soon after, AMD CEO Lisa Su introduced a first look at AMD’s rival system, known as Helios.
Defence stocks rise, oil stocks slip
Shares of major defence companies, including Lockheed Martin and General Dynamics, also moved higher. Traders reassessed geopolitical risks after the United States captured Venezuelan leader Nicolás Maduro in a surprise military operation over the weekend.
At the same time, oil stocks plunged. Companies such as Chevron and Valero Energy slipped after strong gains a day earlier. On Monday, those stocks had jumped after President Donald Trump said he planned to send American drilling companies to increase Venezuela’s oil production. A White House official confirmed that the Trump administration is already speaking with oil companies about potential opportunities in the country.
Overall, markets appear confident as 2026 begins. Still, investors know that upcoming data, especially jobs numbers, could shape expectations in the days ahead.