Closing Bell: Intraday Swings Mark First Trading Day of 2026; Tech Under Pressure

Key Points

• The S&P 500 rose 0.19%, the Nasdaq-100 slipped 0.17%, and small caps outperformed with the Russell 2000 up 1.06%.
• Tesla reported Q4 deliveries of 418,227, missing estimates by ~16,000 units and falling 16% QoQ.
• Baidu announced plans to spin off its AI chip unit, Kunlunxin, with an expected Hong Kong IPO.

Markets finished mixed to close out the first trading day of 2026, as volume and liquidity continued to gradually return following the holiday period. The S&P 500 (SPX) rose 0.19%, while the Nasdaq-100 (NDX) slipped 0.17%. Small-cap stocks outperformed, with the Russell 2000 (RUT) gaining 1.06%. Energy, Industrials, and Materials led the market higher on the session, while Consumer Discretionary and Communication Services were the weakest-performing sectors.

Tesla Misses Q4 Delivery Target

Tesla reported Q4 2025 vehicle deliveries of 418,227, missing consensus expectations by roughly 16,000 units and representing a 16% quarter-over-quarter decline. The shortfall comes as U.S. EV tax credits have expired and international sales slowed amid intensifying competition from BYD. Despite the miss, analysts remain constructive on Tesla’s longer-term outlook, with the stock increasingly valued on the potential of its Robotaxi and robotics initiatives, which are expected to scale over the coming years. Tesla shares closed down 2.59% on the session.

Baidu Plans to Spin Off AI Chip Unit

Baidu officially announced plans to spin off its AI chip unit, Kunlunxin, which is expected to pursue an IPO on the Hong Kong exchange, according to reports. Deal size and transaction structure have not yet been disclosed, and the proposed listing remains subject to regulatory approvals.

Key Market Events for Monday

• 10:00 AM ET: ISM Manufacturing PMI

Notable Earnings for Monday

• None

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