S&P 500: Energy Drives Benchmark Higher as US Stocks Hold Key Support Level

S&P 500 Index Overview: First Trading Day of 2026

The S&P 500 Index finished higher on Friday, the first trading day of the new year. The benchmark was boosted by strong gains in the energy, industrial, materials and utilities sectors. All closed over 1.18% higher.

The broad-based indexes were mixed, but mostly higher. The blue chip Dow Jones Industrial Average settled at 48382.39, up 319.10 or +0.66%, the S&P 500 Index closed at 6858.47, up 12.97 or +0.19% and the tech-weighted Nasdaq Composite ended the session at 23235.629, down 6.362 or -0.03%.

Sector Performance: Energy and Industrials Lead the Charge

The energy sector posted the biggest gain, up 2.09%. Top-weighted Exxon Mobil Corporation (+1.92), followed by Chevron (+2.29%) and ConocoPhillips (+3.30%).

The industrials sector was up 1.88%, led by GE Aerospace (+4.13%), Caterpillar (4.46%) and RTX Corporation (+2.10%).

The materials sector gained 1.51%. Top-weighted Linde plc was up 0.64%. Southern Copper Corp. jumped 3.64% and Newmont Corp. was 1.37% higher.

Individual Stock Movers: Tariff Relief and Pipeline Victory

Story stocks included Sable Offshore which soared 30.04%. The oil and gas company jumped after a federal court denied a stay by environment groups that wanted to halt the restart of Sable Offshore’s Las Flores pipelines in California, according to CNBC. Litigation will continue on the issue this year.

Home goods retailers, Wayfair, RH, and Williams-Sonoma rose following President Donald Trump’s decision to delay a 30% tariff hike on upholstered furniture. Wayfair added 6.12% and RH gained 7.96%, while Williams-Sonoma moved 5.19% higher.

Technical Analysis: The 50-Day Moving Average Holds

Technically, the S&P 500 Index (SPX) is in an uptrend according to the daily swing chart and the moving averages.

The short-term range is 6720.43 to 6945.77. Its 50% level at 6833.10 was tested successfully on Friday. The index actually traded down to 6824.31 before it recovered the pivot into the close. A trade through 6945.77 will signal a resumption of the uptrend. Taking out 6720.43 will change the main trend to down.

Friday’s low at 6824.31 held just above the 50-day moving average at 6805.01 – a critical technical level. This indicator has guided the uptrend for weeks, and a break below it would signal potential trouble. Conversely, holding above it keeps the bullish structure intact.

Looking Ahead: Key Levels and Leadership Questions

Looking ahead to Monday, we’re going to be watching the 50-day moving average to see if it can continue to provide support and guide the uptrend. We’ll also be watching for the return of average volume. Investor style will also be studied with some analysts saying leadership will spread to sectors other than technology, while others think technology, led by renewed interest in semiconductors and AI stocks will steer the uptrend to record highs.

More Information in our Economic Calendar.