New Position Opened — Plus Top Gainers & Laggards

The stock market kicked off 2026 with a rather muted performance, wrapping up a holiday-shortened week with mixed results. The Dow Jones Industrial Average and the Nasdaq Composite saw slight declines of 0.1% and 1.5% respectively, while the S&P 500 also dipped by approximately 1%. This lackluster showing followed a banner year in 2025, where the S&P 500 surged over 16%, the Nasdaq Composite gained a remarkable 20%, and the Dow Jones Industrial Average advanced 13%, with all three indices hitting record highs.

While 2025 was largely a bullish year, it wasn’t without its fluctuations. Investor sentiment was swayed by speculation surrounding the Federal Reserve’s interest rate decisions and concerns over trade policies. A notable trend was the rotation out of technology stocks into more value-oriented sectors, driven by anxieties about inflated valuations within the artificial intelligence (AI) boom. Nevertheless, technology stocks ultimately proved to be the primary drivers of market gains through their robust performance.

The Federal Reserve’s December policy meeting minutes, released mid-week, revealed a divided stance among officials regarding the 25-basis-point rate cut. The decision was approved by a narrow 9-3 vote, marking the most significant dissent since 2019. However, the market’s reaction to this news was relatively subdued, with stocks continuing their downward trend during that trading session.

Within the investment portfolios, a clear divergence emerged between top performers and those that lagged. GE Vernova, Corning, and Alphabet significantly outpaced the S&P 500. GE Vernova, a key player in the AI infrastructure buildout, experienced a remarkable surge of nearly 98.7%. Its manufacturing of heavy-duty natural gas turbines essential for data center expansion contributed to a series of strong quarterly earnings reports throughout 2025. The company’s positive outlook, with management providing guidance through fiscal 2028, suggests continued momentum.

Corning, with an 84.3% gain, benefited from the strength in consumer electronics during 2025. The specialty glass manufacturer’s stock was boosted by a strategic partnership with Apple. Furthermore, Corning’s specialty glass finds application in data centers, capitalizing on the advantages of fiber optics over copper wiring in AI infrastructure.

Alphabet, the parent company of Google, saw a respectable 65.3% increase. After an earlier divestment, the company’s robust AI roadmap, particularly advancements in its Gemini large language models and the rollout of custom chips developed in conjunction with Broadcom, revitalized investor confidence.

On the other end of the spectrum, Salesforce experienced a significant decline of 20.8%. The widespread adoption of AI poses a potential threat to the traditional seat-based Software-as-a-Service (SaaS) business models, as increased automation could lead to a reduced need for employee seats. This concern prompted an earlier downgrade of Salesforce stock to a hold-equivalent rating.

Nike shares fell by 15.8%, impacted by a notable downturn in the crucial Chinese market and challenges within its direct-to-consumer strategy. The broader retail sector also faced headwinds from cautious consumer spending throughout the year. Despite these setbacks, the company’s turnaround efforts under CEO Elliott Hill, evidenced by his recent substantial personal investment in Nike stock, signal potential for future recovery.

Procter & Gamble’s stock dropped 14.5%, weighed down by macroeconomic uncertainties, including concerns about rising interest rates and tariffs impacting operational costs. The prolonged government shutdown further dampened investor sentiment. Despite these pressures, Procter & Gamble was initiated as a hedge against potential pullbacks in discretionary spending, given its focus on essential consumer staples that consumers are likely to prioritize even amid affordability concerns. The company’s position was even added to recently.