Wall Street reaches more records on gains by Big Tech

NEW YORK (AP) — Broad gains led by technology stocks pushed Wall Street to more records on Tuesday.

The gains mirror much of the action from the previous year, when big technology stocks often drove the market to a series of records.

Technology stocks led the gains, but several other sectors assisted in the broader market's advance. Health care companies, retailers and industrial firms broadly gained ground. Roughly three out of every four stocks in the benchmark S&P 500 index rose.

The S&P 500 rose 42.77 points, or 0.6%, to 6,944.82, setting a record on just the third trading day of the year. The Dow Jones Industrial Average rose 484.90 points, or 1%, to 49,462.08, hitting a record for a second-straight day. The Nasdaq composite rose 151.35 points, or 0.6%, to 23,547.17.

Small company stocks outpaced their larger counterparts. The Russell 2000 jumped 1.4% and is now just below its record set in December.

The most notable action remained in the tech sector. Amazon, which has reach into both retail and technology, surged 3.4%. It is one of the most valuable companies in the world and its outsized stock valuation helped counter losses elsewhere in the market, including a 1.8% loss from Apple.

Micron Technology surged 10%, also helping to lift the market. Microsoft rose 1.2%

Nvidia, which is often the biggest force behind the market's direction, wavered throughout the day and finished 0.5% lower.

Sandisk surged 27.6% for the market's biggest gain. The stock's value has jumped more than 800% since spinning off from Western Digital last February. The gains have been driven by artificial intelligence and the resulting demand for data-storage hardware. Western Digital rose 16.8%.

Technology companies, especially those focused on artificial intelligence, are being closely watched this week during the industry's annual CES trade show in Las Vegas.

AI advances helped propel the broader market to a series of records in 2025. Investors will be watching companies for any updates that could shed more light on the big corporate investments in AI technology.

The price of benchmark U.S. crude oil fell 2% to $57.13 per barrel, pulling back from sharp gains a day prior when the market reacted to U.S. forces capturing Venezuelan President Nicolás Maduro in a weekend raid. The price of Brent crude, the international standard, fell 1.7% to $60.70 per barrel.

Treasury yields rose in the bond market. The yield on the 10-year Treasury climbed to 4.16% from 4.15% late Monday. The yield on the two-year Treasury, which moves more closely with expectations for what the Federal Reserve will do, rose to 3.46% from 3.45% late Monday.

Gold prices rose 1% and silver prices rose 5.7%. Such assets are often considered safe havens in times of geopolitical turmoil. The metals have notched record prices over the last year amid lingering economic concerns brought on by conflicts and trade wars.

Markets in Europe gained ground.

Outside of company announcements, Wall Street is preparing for several updates on the U.S. labor market this week, along with reports on the services sector and consumer sentiment. They will help paint a clearer picture of how vital parts of the economy closed out 2025 and the direction they could take in 2026.

On Wednesday, the U.S. government will release its report on job openings for November. The October report showed that U.S. job openings had barely budged. Weekly unemployment data will be released on Thursday and the broader monthly employment report, for December, will be released on Friday.

The Institute for Supply Management will also release its latest services sector update on Wednesday, while the University of Michigan will release its latest consumer sentiment survey Friday. They are both widely monitored because the services sector makes up the bulk of the U.S. economy, and consumer sentiment has been shaky under the weight of higher prices and economic uncertainty.

The Fed will be analyzing all of that data and more ahead of its next meeting in late January. The central bank cut its benchmark interest rate three times late in 2025 to try and counter the economic impact of a softer jobs market. Lower interest rates on loans can help bolster economic activity.

Cutting rates also risks fueling inflation at a time when it remains stubbornly above the Fed's 2% target and could potentially reheat. Rising inflation could counter any benefit from lower interest rates and weigh more heavily on the economy.

Wall Street expects the Fed to hold interest rates steady at its January meeting.

AP business writers Elaine Kurtenbach and Matt Ott contributed to this report.

Federico DeMarco works on the floor at the New York Stock Exchange in New York, Tuesday, Jan. 6, 2026. (AP Photo/Seth Wenig)

Alexander Weitzman works on the floor at the New York Stock Exchange in New York, Tuesday, Jan. 6, 2026. (AP Photo/Seth Wenig)

Options trader Steven Rodriguez works on the floor of the New York Stock Exchange, Friday, Jan. 2, 2026. (AP Photo/Richard Drew)

FILE - Trader Anthony Confusione works on the floor of the New York Stock Exchange, Dec. 11, 2025. (AP Photo/Richard Drew, File)

A dealer walks past near the screen showing the Korea Composite Stock Price Index (KOSPI) at a dealing room of Hana Bank in Seoul, South Korea, Monday, Jan. 5, 2026. (AP Photo/Lee Jin-man)

People walk in front of an electronic stock board showing Japan's Nikkei index at a securities firm marking the start of this year's trading Monday, Jan. 5, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)

A staff stands near a monitor showing Nikkei 225 index after a ceremony marking the start of this year's trading Monday, Jan. 5, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)

NEW YORK (AP) — A federal judge in New York tossed out actor Blake Lively’s sexual harassment claims Thursday against actor Justin Baldoni over their roles in the movie “It Ends With Us,” but he left intact three claims, including retaliation, that will let a jury hear many of the allegations anyway.

The written ruling by Judge Lewis J. Liman in Manhattan came after Lively sued Baldoni last December, alleging sexual harassment among over a dozen claims against Baldoni and other parties.

A trial is scheduled for May 18.

Baldoni and production company Wayfarer Studios had countersued Lively and her husband, “Deadpool” actor Ryan Reynolds, accusing them of defamation and extortion. The judge dismissed Baldoni’s claims last June.

In his ruling, Liman determined that Lively was an independent contractor rather than an employee. On that basis, he said she was not entitled to bring sexual harassment claims under Title VII of the Civil Rights Act of 1964. That law prohibits employment discrimination on various grounds, including gender.

As to retaliation claims, the judge said some evidence might enable a jury to conclude that Baldoni's production company planned not only to damage Lively's reputation but to destroy her career as there was fear she would file a discrimination claim. Lively alleges that a smear campaign has been “devastating for her reputation and career,” the judge noted.

In an analysis of the sexual harassment claims, the judge said Lively's claims had to be viewed in the context of the movie they were working on.

“Lively claims that during filming, Baldoni leaned in and gestured as if he was intending to kiss her, and that he kissed her forehead, rubbed his face and mouth against her neck, put his thumb to her mouth and flicked her lower lip, caressed her, and leaned into her neck, saying ‘it smells good,’” the judge wrote.

He said there was no question that the conduct would support a hostile work environment claim if it happened on a factory floor or in an executive suite.

However, the judge noted, Baldoni was “acting in the scene.”

“Assuming he was improvising, the conduct was not so far beyond what might reasonably be expected to take place between two characters during a slow dancing scene such that an inference of hostile treatment on the basis of sex would arise. At least in isolation, the conduct was directed to Lively’s character rather than to Lively herself,” he wrote.

“Creative artists, no less than comedy room writers, must have some amount of space to experiment within the bounds of an agreed script without fear of being held liable for sexual harassment,” Liman added.

Despite those findings, the judge said some of Lively's claims about sexual harassment may be put to a jury to support two retaliation claims that survived the ruling, including one against It Ends With Us Movie LLC and Wayfarer Studios, and a third claim that was left intact alleging breach of a contract rider agreement against It Ends With Us Movie LLC.

The judge noted that Baldoni once said “pretty hot” after asking Lively to remove her jacket, exposing a lace bra underneath, and that when he was warned that it was inappropriate and distracting to make such comment, he allegedly rolled his eyes and responded: “Sorry, I missed the sexual harassment training.”

Liman also cited a scene in which Baldoni pushed for Lively to perform a birth scene naked and then the scene was filmed over several hours without the set being closed to nonessential personnel.

And in another instance, the judge said, it was alleged that Baldoni volunteered that he had previously been addicted to pornography and Lively said she had never seen pornography.

Liman said it “may be fair grounds for an author or a director to discuss personal experiences, including those related to sex, as part of the creative process,” but the judge wrote that Baldoni may have crossed the line when he later announced to others on set that Lively had never seen pornography.

In a statement, Lively attorney Sigrid McCawley wrote that Lively “looks forward to testifying at trial and continuing to shine a light on this vicious form of online retaliation so that it become easier to detect and fight.”

She added: “This case has always been and will remain focused on the devasting retaliation and the extraordinary steps the defendants took to destroy Blake Lively’s reputation because she stood up for safety on the set and that is the case that is going to trial.”

A lawyer for Baldoni and his production company did not immediately comment.

“It Ends With Us,” an adaptation of Colleen Hoover’s bestselling 2016 novel that begins as a romance but takes a dark turn into domestic violence, was released in August 2024, exceeding box office expectations with a $50 million debut. But the movie’s release was shrouded by speculation over discord between Lively and Baldoni.

Lively appeared in the 2005 film “The Sisterhood of the Traveling Pants” and the TV series “Gossip Girl” from 2007 to 2012 before starring in films including “The Town” and “The Shallows.”

Baldoni starred in the TV comedy “Jane the Virgin,” directed the 2019 film “Five Feet Apart” and wrote “Man Enough,” a book challenging traditional notions of masculinity.

This combination of images shows Blake Lively at the London screening of the film "It 'Ends With Us" on Aug. 8, 2024, left, and Justin Baldoni at the world premiere of the film in New York on Aug. 6, 2024. (AP Photo)