U.S. stocks opened 2026 with mixed results, as artificial intelligence stocks surged while other sectors saw smaller changes. The S&P 500 ended slightly higher, the Nasdaq slipped a little, and the Dow Jones Industrial Average gained 0.6%, or 319 points. AI stocks, which powered much of the market’s gains in 2025, remain a major focus for investors. Analysts say global growth and potential interest rate cuts could continue to support U.S. equities this year. “Most financial assets performed well in 2025, with global equities, bonds, and emerging markets all seeing gains,” said Jim Reid, Deutsche Bank’s global head of macro research. “Growth, optimism around AI, and further central bank rate cuts drove this performance.” Wall Street analysts are largely bullish. A Bloomberg survey found every analyst expects the S&P 500 to rise in 2026, with an average projected gain of 9%. This is slightly below the index’s 20-year average annual return. No analysts predicted a decline for the S&P 500 this year. In 2025, the S&P 500 rose more than 16%, despite challenges such as trade policy uncertainties under former President Donald Trump. The AI sector played a key role in the index’s third straight year of positive returns. AI-related companies led gains at the start of trading. Sandisk, Micron, Western Digital, Intel, and Constellation Energy were among the top performers, supported by news of AI IPOs in Asia and a research paper from China’s DeepSeek outlining more efficient AI development. Tech giants Nvidia, Broadcom, and Taiwan Semiconductor also saw strong gains on Friday, reflecting continued investor confidence in the AI-driven sector. Other sectors experienced mixed outcomes. Home furnishing companies RH and Wayfair rose after Trump delayed a new wave of tariffs on furniture and kitchen cabinets. Precious metals, including gold and silver, moved modestly before fading late in the session. Gold ended slightly lower, while silver closed up about 1.8%. Crude oil prices declined slightly, continuing a trend from last year when oil posted its biggest annual drop since 2020. Lower oil prices helped reduce gas costs, with AAA reporting the average price at the pump at $2.83 per gallon, down from $3.06 a year ago. Despite strong 2025 gains, U.S. stocks lagged behind international markets. The S&P 500’s 16% gain trailed the MSCI All Country World ex USA index, which rose over 30%. South Korea’s Kospi benchmark surged 76%, aided by electronics firm Samsung and AI-linked chipmaker SK Hynix. Japan’s Topix, Germany’s DAX, and the U.K.’s FTSE 100 all gained more than 20%, with Kioxia, a Japanese memory supplier, surging 540% in 2025. Bank of America economist Aditya Bhave noted a cautious outlook. “We have a really interesting contrast between soft labor data and strong consumer demand,” he said. Bank of America projects a 3.7% gain for the S&P 500 this year. Savita Subramanian, Bank of America’s head of U.S. equity strategy, added, “It may not be as exciting as recent years, but there are still many areas with strong potential upside.” Overall, AI stocks are driving optimism as the U.S. market enters 2026, with analysts watching closely for growth trends and interest rate changes.