（Singapore, 02.01.2026）Global financial markets began 2026 on a cautiously positive footing, with stocks rebounding from late-2025 losses as renewed enthusiasm for artificial intelligence helped lift investor confidence. Early gains across the U.S., Europe, and Asia suggested that many of last year’s dominant themes, especially the surge in AI-related investments are carrying into the new year, even as concerns over stretched valuations and policy risks remain in the background.
U.S. stock futures rose firmly on the first trading day of the year. Nasdaq 100 futures climbed closely to 1%, leading gains among major indexes, while S&P 500 futures pointed to an advance of around 0.5% at the opening bell. Dow futures also moved higher, signaling a broadly stronger start after several sessions of losses toward the end of 2025.
The rebound followed a volatile close to last year, when markets slipped during the final trading days of December and missed the traditional “Santa Claus rally.” Despite that late weakness, 2025 still marked a third consecutive year of double-digit gains for U.S. stocks, driven largely by sustained investment in technology and artificial intelligence.
Technology shares steadied after recent pullbacks, helping restore confidence among investors. Nvidia rose about 1.4% in premarket trading, while Broadcom added roughly 1.5%. These gains came after tech stocks led the year-end decline as investors adjusted portfolios and locked in profits ahead of 2026.
Optimism was also reinforced by developments in Asia. In Hong Kong, a strong market debut by chip designer Shanghai Biren Technology helped set a positive tone for regional trading. Shares of Baidu surged after the Chinese internet company said its AI chip unit had confidentially filed for an initial public offering, raising expectations of further capital inflows into the sector. Separately, AI startup DeepSeek published new research outlining a more efficient method of developing large-scale AI models, adding momentum to the broader technology narrative.
European markets joined the global rally. The Stoxx 600 index reached a fresh all-time high, while the UK’s FTSE 100 briefly crossed the 10,000 mark for the first time, highlighting improved risk appetite at the start of the year.
Outside equities, precious metals also moved higher after several days of sharp swings. Silver jumped more than 3% to around $74 an ounce, while gold advanced alongside industrial metals such as copper and aluminum. The gains reflected renewed demand for hard assets as investors weighed the outlook for inflation, interest rates, and global growth.
U.S. Treasuries firmed after yields initially rose, while the dollar was little changed, pointing to a cautious wait-and-see stance in currency markets.
While the strong opening has lifted market sentiment, according to Bloomberg and Reuters, analysts warned against reading too much into the first trading session of the year. Historically, early January performance has proven to be an unreliable guide to how markets perform over the full year. In fact, the S&P 500 has more often declined than risen at the start of a new year, even in periods that later delivered strong annual returns.
According to Bloomberg and Reuters, some strategists warned that markets are entering 2026 at or near record highs, making them more susceptible to sharper pullbacks if expectations fall short. With equity valuations already elevated, investors are increasingly questioning whether the massive investment flowing into artificial intelligence can generate sustained earnings growth quickly enough to support current market levels.
Beyond AI, several key themes are expected to influence markets in the months ahead. U.S. trade policy remains a source of uncertainty, with a Supreme Court ruling pending on the legality of tariffs introduced under President Donald Trump. Any unexpected outcome could disrupt global trade flows and reignite volatility.
Monetary policy will also be in sharp focus. The Federal Reserve cut interest rates at each of its final three meetings in 2025 amid signs of a softening labor market. However, inflation remains above the central bank’s 2% target, leaving policymakers divided over how much further rates can be reduced this year. Investors are also awaiting President Trump’s expected nomination of a new Federal Reserve chair, a move that could reshape expectations for future policy direction.
Attention will soon turn to economic data, particularly U.S. employment figures due next week. A weaker-than-expected jobs report could heighten recession concerns, while stronger data may dampen hopes for additional rate cuts. Inflation data and business activity surveys later in the month are also expected to influence market direction.
Adding to the uncertainty, fourth-quarter earnings season is about to begin, with major U.S. banks set to report results from mid-January. With stocks trading at historically high valuations, investors are placing heavy emphasis on earnings growth to support current market levels.
For now, markets appear willing to start 2026 on a note of cautious optimism, supported by hopes that AI-led productivity gains, resilient corporate earnings, and a supportive policy backdrop can extend the rally. Still, many investors remain alert to the risk of sharper swings ahead as economic data, policy decisions, and geopolitical developments come back into focus.
