Wells Fargo analyst Ohsung Kwon put out his 2026 outlook, and predicts that the S&P 500 will end the year at 7800

US stocks gave up early gains to end lower after economic and rate uncertainty topple strong earnings from AI darling Nvidia and retail giant Walmart.

The three biggest US stock indexes resumed their slide on Thursday, reversing course after an early morning rally. The S&P 500 ended the day 1.5% lower, the Dow Jones Industrial Average fell 0.8% and the Nasdaq lost more than 2%. On Friday, major stock markets in Asia also lost ground.

Alphabet, Google’s parent company, rose 2.7%, surpassing Microsoft as the third-largest U.S. company by market capitalization. If trends hold, Friday would mark the first time since Aug. 30, 2018, that Alphabet has closed with a higher market cap than Microsoft, according to Dow Jones Market Data. Microsoft shares fell 1.1%.

Stocks rallied in early trading on Thursday, just hours after blockbuster earnings from chip giant Nvidia and a stronger-than-expected jobs report. The Dow Jones Industrial Average jumped nearly 600 points, or 1.2%, while the S & P 500 climbed 1.8%. The tech-heavy Nasdaq soared 2.5%.

It was shaping up to be a positive end for an otherwise turbulent week for stocks amid broad concerns about the U.S. labor market and whether big tech companies — responsible for much of the market's gains this year — will be able to justify their sizable investments in artificial intelligence.

Asian semiconductor stocks tumbled on renewed fears of an artificial-intelligence bubble, tracking U.S. declines from Thursday. European chip shares fell too. Shares in [Samsung Electronics](

Hedge funds were caught on the wrong side of a sharp two-day swing in the stock market, rushing to protect against losses on Thursday only to unwind those positions a day later as prices snapped back.

Value stocks in the U.S. were beating growth equities Friday afternoon, even as the S&P 500’s technology sector rebounded. The Russell 1000 Value Index was up 1.9%, while the Russell 1000 Growth Index was rising 1.

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The list includes Lockheed Martin, water management products manufacturer Pentair, human resources and administrative advisor TriNet Group, sneaker maker On Holding, O’Reilly Automotive, Booking Holdings, Planet Fitness, and Pizza Hut owner Yum! Brands.