Market trading on Wall Street opened in 2026 on a stronger footing after a weak year-end. A rebound in US stock futures signaled improving investor confidence and a renewed, though tentative, risk appetite.

The early strength suggested a reset in sentiment rather than confirmation of a sustained trend. While firmer equity sentiment could provide short-term support for crypto assets, investors remain cautious amid lingering concerns over broader liquidity conditions.

Equity Optimism Spills Into Crypto

Markets are entering the new year after a volatile close to 2025, a year that still delivered solid gains across major indexes.

This positive sentiment spilled over into 2026, as US stock futures rose early Friday, with major indexes like the S&P 500, Dow, and Nasdaq all marking gains.

S&P 500 Futures Early Trading. Source: Investing.com.

While Wall Street’s first trading days often end higher as investors reposition portfolios, they can also signal improving sentiment and a renewed appetite for risk. As a result, the price of major cryptocurrencies also increased. 

Bitcoin rose to $90,700 on Friday morning, while Ethereum peaked at $3,130. 

Given crypto’s growing correlation with technology and AI-driven equities, renewed interest in the AI theme has helped support digital asset prices.

Crypto Market Turns Green After Stock Market Opens With Positive Charts on January 2. Source: CoinGecko

AI Stocks Lead Early Gains

The Magnificent Seven stocks all traded higher in early sessions. Semiconductor maker Nvidia and Alphabet, Google’s parent company, were among the names posting gains of more than 1%.

These moves underscored continued investor interest in companies leading the artificial intelligence race. With AI stocks having been the primary driver of equity gains in 2025, early strength in 2026 has helped reassure investors that the growth narrative remains intact.

This, in turn, reinforces confidence that risk-taking continues to be rewarded. Historically, periods of stabilization or renewed momentum in AI-linked stocks have also tended to reduce downside risk across more speculative assets.

Nonetheless, the first trading day has historically proven a poor predictor of how the rest of the year unfolds, placing greater emphasis on upcoming economic data and broader market signals to assess whether risk appetite is genuinely improving.

Macro Data to Test Future Risk Appetite

Investors are watching key economic indicators that will shape their trading activity throughout the year. 

Though the Federal Reserve has signalled a more dovish monetary policy trajectory, Chair Jerome Powell has cautioned against further interest rate cuts. A key factor in determining whether they happen or not will be labor market data, which will be released on January 9. 

If the data is weak, it will revive recession or liquidity concerns. This will directly impact risk appetite.

Meanwhile, AI stocks will remain the primary source of confidence in equities. Though today’s markets reacted favorably, pressure on AI leadership is higher than ever. 

Traders may begin demanding clearer evidence that large AI investments can generate profits. The narrow, concentrated leadership in a group of mega-cap stocks has also raised concerns that broader equity participation is weak. 

If a handful of AI names falter, overall risk sentiment could deteriorate quickly.