Early gains fade as Wall Street wobbles into 2026

NEW YORK (AP) — Stocks wavered on Wall Street Friday to kick off the new year as early gains led by technology stocks failed to hold up.

The S&P 500 fell 0.1% after having been up as much as 0.7% at the start of trading. The benchmark index is coming off a gain of more than 16% in 2025.

The Nasdaq composite fell 0.3%. The Dow Jones Industrial Average managed a gain of 84 points, or 0.2%, as of 11:09 a.m. Eastern.

Major indexes are closing a mostly tepid, shortened holiday week. Markets were closed Thursday for New Year’s Day.

Markets in Europe and Asia made strong gains. Indexes in Britain and South Korea hit records.

Technology stocks were steering the market, especially companies with a focus on artificial intelligence, continuing the trend that pushed the broader market to records in 2025.

Nvidia jumped 1.3% and was the biggest force trying to push the market higher. Broadcom jumped 1.9%. But a 0.2% drop from Google's parent company Alphabet and a 2.1% fall for Microsoft helped to counter those gains.

Those technology companies are among the most valuable companies in the world and their outsized valuations give them more influence on the market's direction. That includes sometimes pushing the market up and down from hour to hour.

Technology companies have been a major focus because of advancements in artificial intelligence technology and the potential for growth within the sector. Wall Street has been betting that demand for computer chips and other items needed for data centers will help justify the big investments from technology companies and their pricey stock values.

Tesla fell 0.6% after reporting falling sales for a second year in a row.

E-commerce giant Alibaba climbed 4.3% and Baidu, maker of the Ernie chatbot, jumped 9.4% in Hong Kong after it said it plans to spin off its AI computer chip unit Kunlunxin, which would list shares in Hong Kong early in 2027. The plan is subject to regulatory approvals.

Crude oil prices slipped. Prices for U.S. crude oil fell 1.1% to $56.77 per barrel. The price of Brent crude, the international standard, fell 1.2% to $60.13 per barrel.

Gold prices kicked off the new year with more gains. The price of gold rose 0.2%.

Treasury yields held steady in the bond market. The yield on the 10-year Treasury rose to 4.18% from 4.17% late Wednesday. The yield on the two-year Treasury, which moves more closely with expectations for what the Federal Reserve will do, slipped to 3.47% from 3.48% late Wednesday.

Wall Street will move past the mostly quiet holiday season after Friday. The first full week of the new year will include several closely watched economic updates. They will also be some of the last big updates the Fed sees before its next meeting at the end of January.

Next week will feature private reports on the status of the services sector, which is the largest part of the U.S. economy, along with consumer sentiment. Government reports on the job market will also be released. They will all help paint a clearer picture of how various parts of the U.S. economy closed out 2025 and where it might be headed in 2026.

The Fed has had a more difficult task because of the complex shifts within the economy. It cut interest rates three times toward the end of 2025, partly to help counter a weakening jobs market. But inflation remains above its target rate of 2% and cutting interest rates could add more fuel to rising prices. Consumers have already expressed more caution amid the squeeze from stubborn inflation and the U.S. trade war with much of the world has added more uncertainty.

The Fed has already signaled concern and caution. Wall Street is betting that the central bank will hold its benchmark interest rate steady at its January meeting.

AP business writer Elaine Kurtenbach contributed to this report.

Specialists Patrick King, left, and Douglas Johnson work on the floor of the New York Stock Exchange, Friday, Jan. 2, 2026. (AP Photo/Richard Drew)

Trader Vincent Napolitano, foreground, works with colleagues on the floor of the New York Stock Exchange, Friday, Jan. 2, 2026. (AP Photo/Richard Drew)

Trader Fred Demarco works on the floor of the New York Stock Exchange, Friday, Jan. 2, 2026. (AP Photo/Richard Drew)

Trader Jonathan Mueller works on the floor of the New York Stock Exchange, Friday, Jan. 2, 2026. (AP Photo/Richard Drew)

Trader Michael Capolino works on the floor of the New York Stock Exchange, Friday, Jan. 2, 2026. (AP Photo/Richard Drew)

A screen shows the Korea Composite Stock Price Index (KOSPI) as participants applaud during the opening ceremony of the 2026 trading year at the Korea Exchange in Seoul, South Korea, Friday, Jan. 2, 2026. (AP Photo/Lee Jin-man)

Dancers in traditional costumes perform to celebrate the opening for the 2026 trading year outside of the Korea Exchange in Seoul, South Korea, Friday, Jan. 2, 2026. (AP Photo/Lee Jin-man)

A worker walks near a screen showing the Korea Composite Stock Price Index (KOSPI) after the opening ceremony of the 2026 trading year at the Korea Exchange in Seoul, South Korea, Friday, Jan. 2, 2026. (AP Photo/Lee Jin-man)

South Korean financial officers celebrate the opening for the 2026 trading year outside of the Korea Exchange in Seoul, South Korea, Friday, Jan. 2, 2026. (AP Photo/Lee Jin-man)

Dancers in a bull-shaped costume perform to celebrate the opening for the 2026 trading year outside of the Korea Exchange in Seoul, South Korea, Friday, Jan. 2, 2026. (AP Photo/Lee Jin-man)

WEST PALM BEACH, Fla. (AP) — President Donald Trump has spent much of his two-week vacation in Florida golfing. But when he gets back to the White House, there's a military golf course that he's never played that he's eyeing for a major construction project.

Long a favored getaway for presidents seeking a few hours’ solace from the stress of running the free world, the Courses at Andrews — inside the secure confines of Joint Base Andrews in Maryland, about 15 miles (24 kilometers) from the White House — are known as the “president's golf course." Gerald Ford, Ronald Reagan, George H.W. Bush, Bill Clinton, George W. Bush and Joe Biden have spent time there, and Barack Obama played it more frequently than any president, roughly 110 times in eight years.

Trump has always preferred the golf courses his family owns — spending about one of every four days of his second term at one of them. But he's now enlisted golf champion Jack Nicklaus as the architect to overhaul the Courses at Andrews.

“It’s amazing that an individual has time to take a couple hours away from the world crises. And they’re people like everybody else,” said Michael Thomas, the former general manager of the course, who has golfed with many of the presidents visiting Andrews over the years.

Andrews, better known as the home of Air Force One, has two 18-hole courses and a 9-hole one. Its facilities have undergone renovations in the past, including in 2018, when Congress approved funding to replace aging presidential aircraft and to build a new hangar and support facilities. That project was close enough to the courses that they had to be altered then, too.

Trump toured the base by helicopter before Thanksgiving with Nicklaus, who has designed top courses the world over. The president called Andrews “a great place, that’s been destroyed over the years, through lack of maintenance.”

Other golfers, though, describe Andrews’ grounds as in good shape, despite some dry patches. Online reviews praise the course's mature trees, tricky roughs, and ponds and streams that serve as water hazards. The courses are mostly flat, but afford views of the surrounding base.

The first president to golf at Andrews was Ford in 1974. Thomas began working there a couple years later, and was general manager from 1981 until he retired in 2019.

He said the Secret Service over the years used as many as 28 golf carts — as well as the president's usual 30-car motorcade — to keep the perimeter secure.

“It’s a Cecil B. DeMille production every time,” said Thomas, who had the opportunity to play rounds with four different presidents, and with Biden when he was vice president.

He said the commanders in chief generally enjoyed their time out on the course in their own unique ways, but “they all like to drive the cart because they never get an opportunity to drive."

“It’s like getting your driver’s license all over again," Thomas laughed.

Trump golfs most weekends, and as of Friday, has spent an estimated 93 days of his second term doing so, according to an Associated Press analysis of his schedules.

That tally includes days when Trump was playing courses his family owns in Virginia, around 30 miles (48 kilometers) from the White House, and near his Florida estate Mar-a-Lago, where he's spending the winter holidays. It also includes 10 days Trump spent staying at his golf club in Bedminster, New Jersey, where his schedule allowed time for rounds of golf.

Trump has visited Andrews in the past, but the White House and base have no record of him playing the courses.

Andrews’ military history dates to the Civil War, when Union troops used a church near Camp Springs, Maryland, as sleeping quarters. Its golf course opened in 1960.

The White House said the renovation will be the most significant in the history of Andrews. The courses and clubhouse need improvements due to age and wear, it said, and there are discussions about including a multifunctional event center as part of the project.

“President Trump is a champion-level golfer with an extraordinary eye for detail and design," White House spokesman Davis Ingle said in a statement. "His vision to renovate and beautify Joint Base Andrews' golf courses will bring much-needed improvements that service members and their families will be able to enjoy for generations to come.”

Plans are in the very early stages, and the cost of — and funding for — the project haven't been determined, the White House said. Trump has said only that it will require “very little money."

The Andrews improvements join a bevy of Trump construction projects, including demolishing the White House’s East Wing for a sprawling ballroom now expected to cost $400 million, redoing the bathroom attached to the Lincoln bedroom and replacing the Rose Garden’s lawn with a Mar-a-Lago-like patio area.

Outside the White House, Trump has led building projects at the Kennedy Center and wants to erect a Paris-style arch near the Lincoln Memorial, and has said he wants to rebuild Dulles International Airport in northern Virginia.

On Wednesday, meanwhile, the Trump administration ended a lease agreement with a non-profit for three public golf courses in Washington — which could allow the president to further shape golfing in the nation's capital. The White House, however, said that move isn't related to the plans for Andrews.

When the president is golfing, Andrews officials block off nine holes at a time so no one plays in front of him, allowing for extra security while also ensuring consistent speed-of-play, Thomas said.

That's relatively easily done given that the courses aren't open to the public. They're usually reserved for active or retired members of the military and their families, as well as some Defense Department-linked federal employees.

Thomas remembers playing a round with the older President Bush, a World Golf Hall of Fame inductee known for fast play, while first lady Barbara Bush walked with Millie, the first couple’s English Springer Spaniel. George W. Bush also played fast, Thomas said, and got additional exercise by frequently riding his mountain bike before golfing.

When he wasn't golfing at Andrews, Obama tried to recreate at least part of the experience back home. He had a White House golf simulator installed after then-first lady Michelle Obama asked Thomas how they might acquire a model that the president had seen advertised on the Golf Channel. Thomas gave her a contact at the network.

Obama famously cut short a round at Andrews after nine holes in 2011 to hustle back to the White House for what turned out to be a top-secret review of final preparations for a Navy SEAL raid on the compound of Osama bin Laden.

But, while Thomas was golfing with presidents, he said he never witnessed play interrupted by an important call or any major emergency that forced them off the course mid-hole. There also were never any rain-outs.

“If there was rain coming, they’d get the weather forecast before we would,” Thomas said. “They would cancel quick on that.”

FILE - President Barack Obama, right, talks with former President Bill Clinton while playing a round of golf at Andrews Air Force Base Sept. 24, 2011, at Andrews Air Force Base, Md. (AP Photo/Evan Vucci, File)

FILE - President George W. Bush practices his swing as he prepares to tee off on the first hole at the golf course at Andrews Air Force Base, Md., July 3, 2002. (AP Photo/Pablo Martinez Monsivais, File)

Michael Thomas, the former manager of the Courses at Andrews at Joint Base Andrews, stands with footballs autographed by several former presidents, Friday, Dec. 19, 2025, in Lothian, Md. (AP Photo/Mark Schiefelbein)

FILE - President George H.W. Bush talks with tennis star Andre Agassi, left, and actor Kevin Costner, right, while playing the 18th hole at Andrews Air Force Base, Md., July 28, 1991. (AP Photo/Doug Mills, File)

FILE - President Barack Obama, from right, Vice President Joe Biden, House Speaker John Boehner, R-Ohio, and Ohio Gov. John Kasich walk on the first green during a round of golf at Andrews Air Force Base, Md., June 18, 2011. (AP Photo/Charles Dharapak, File)