Dow Rises, S&P 500 Flat, Nasdaq Down; Nvidia, Intel, Tesla, Northrop, Lockheed, More Movers
Big tech stocks got hammered Thursday as investors shunned the all-stars to plug money into shares of energy giants, defense names, and smaller companies.
The Dow rose 270 points, or 0.6%, S&P 500 was flat, the Nasdaq fell 0.4%.
The information technology sector has lost about 1% so far this year and is among the only two sectors marking losses in 2026. Utilities is the other loser.
In contrast, the Russell 2000, which encapsulates shares of smaller companies, was up about 1% near the close.The index is up nearly 5% in 2026 so far, the best performing major index.
“Factor and sector rotations are happening rapidly to start the new year,” wrote Jonathan Krinsky, chief market technician at BTIG. “Small-Caps [are] breaking out relative to mega-cap tech.”
Gains in small-caps can be attributed to risk-taking. Investors are shrugging off geopolitical frictions with Latin America and Europe–along with a heated political climate inside the U.S.– and driving cash into shares of S&P 500 companies that aren’t the Magnificent 7. It’s a show of their optimism on U.S corporate profits: Small-caps would benefit most from an uptick in economic growth.
Chalk up seasonality as another factor. The start of the year until mid-February is typically a strong period for the Russell 2000. Since 1987, on average, the index has gained 2.9% over that period, according to Dow Jones Market Data.
“So far it’s following that playbook,” Krinsky said.
Energy has been the other early-year gainer, with the sector up around 4% year-to-date. It was Thursday’s top performer as well. The opposite happened yesterday, when tech topped the leaderboard and energy stocks lost value.
“Rotation is a key theme for 2026–US vs. Rest of the World, tech versus cyclicals,” wrote MacroVantage.
Within the debt world, the 10-year Treasury yield rose. Prices and yields move in opposite directions. But yields have failed to break past 4.2%, a level that has become a line in sand for the market as yields continue to trade in a range. Tomorrow’s release of employment figures at 8:30 a.m. ET might break the market’s silence.
“When combined with the geopolitical concerns following Maduro’s capture, the new year has brought with it less clarity than one might have anticipated. As investors continue to navigate the curse of interesting times, the US rates market has been content to tread within the prevailing range– at least until the December payrolls figures are in hand,” wrote Ian Lyngen, Head of US Rates Strategy at BMO.
