'Fast Money' traders recap the first trading day of 2026

Watch on YouTube ↗  |  January 02, 2026 at 22:36  |  4:52  |  CNBC
Speakers
Steve Grasso — Trader
Mike Khouw — Chief Market Strategist, Fundstrat Global Advisors
Karen Finerman — CEO, Metropolitan Capital Advisors; Fast Money trader

Summary

The Fast Money traders recap the first trading day of 2026, cautioning against over-extrapolating one session or expecting a repeat of 2025 returns. They still see durable AI data center and power grid demand, and flag a continuing rotation into value and retail on Big Beautiful Bill speculation. Options trader Mike Khouw notes low VIX readings signal sanguine investors and a generally supportive environment for stocks.

  • Panel kicks off with first-trading-day 2026 market recap and low-volume caveats.
  • Karen Finerman says she is sticking with her existing portfolio rather than overhauling for the calendar.
  • Discussion highlights late-2025 rotation from AI and high fliers toward value-oriented sectors.
  • Steve Grasso argues AI data center buildout and power grid usage remain durable despite the calendar change.
  • Grasso also cites speculation that the Big Beautiful Bill could spur retail investment and consumption.
  • Mike Khouw notes VIX around 14.5 and a five-day average below 14, implying low option premium.
  • Khouw says the low-volatility regime is generally a good environment for stocks.
  • Transcript ends before the panel moves into further stock-specific discussion.
Ideas
Steve Grasso Trader 1:55
Value and retail rotation continues.
The late-2025 rotation away from high fliers and AI toward value-oriented sectors can continue, partly on speculation that the Big Beautiful Bill will spur retail investment and consumption. He expects those forces to remain at play on the margin.
Value sectors XRT MED
Steve Grasso Trader 2:16
AI data centers and power grid durable.
AI data center buildout and power grid usage are durable trends that will not disappear just because the calendar turned to 2026. While expecting the same returns as 2025 may be a fool's errand, completely reversing the 2025 playbook and rotating fully away from AI is probably not the right playbook for 2026.
AI Data Centers GRID MED
Mike Khouw Chief Market Strategist, Fundstrat Global Advisors 3:36
Low VIX supports stocks.
VIX around 14.5 and its five-day average dipping below 14 indicate low option premium and sanguine investors. Low volatility as measured by the VIX is generally a good environment for stocks, so the calendar change alone should not alter the supportive backdrop.
SPY HIGH
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This CNBC video, published January 02, 2026, features Steve Grasso, Mike Khouw discussing Value sectors, XRT, AI Data Centers, GRID, SPY. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Steve Grasso, Mike Khouw  · Tickers: Value sectors, XRT, AI Data Centers, GRID, SPY