The first trading day of 2026 witnessed a powerful surge across major global equity markets, with investor sentiment riding high on the promise of artificial intelligence and stellar performances from technology heavyweights. According to an AP report, the bullish momentum that defined the closing months of 2025 seamlessly carried into the new year, setting a positive tone for global finance.
Wall Street and Tech Giants Lead the Charge
In early trade on Friday, Wall Street's key indices mostly advanced, extending their impressive annual gains from the previous year. The S&P 500 index climbed 0.4 per cent, building on its 2025 closing gain of over 16 per cent. The technology-focused Nasdaq Composite outperformed, jumping 1 per cent as major tech names saw significant buying interest. The Dow Jones Industrial Average was a slight outlier, dipping 60 points or 0.1 per cent.
The enthusiasm was particularly concentrated in artificial intelligence-linked stocks. Chipmaker Nvidia and Google's parent company, Alphabet, each rose more than 2 per cent. This rally stems from a widespread expectation that the expanding adoption of AI technologies will fuel long-term demand for semiconductors, data centres, and related infrastructure. Meanwhile, US Treasury yields held largely steady.
European and Asian Markets Join the Rally
The optimism was not confined to American shores. European markets opened the year on a remarkably strong footing. In a historic move, London's FTSE 100 index jumped 1 per cent to an intraday record of 10,033.94, decisively crossing the 10,000-point milestone for the very first time. Germany's DAX rose 0.5 per cent to 24,619.41, and France's CAC 40 advanced 0.8 per cent to 8,213.59.
The London rally was bolstered by sharp gains in precious metals miners. Companies like Fresnillo, which surged 5.7 per cent, and Anglo American, up 1.5 per cent, benefited from rising prices for gold, silver, and copper.
Asian markets presented a mixed but largely positive picture. South Korea's Kospi surged 2.3 per cent to 4,309.63, propelled by a massive 7.2 per cent leap in Samsung Electronics and a 4 per cent gain in SK Hynix. Hong Kong's Hang Seng index rallied impressively, gaining 2.8 per cent to reach 26,338.47. This surge was driven by tech stocks, with Alibaba rising 4.3 per cent and Baidu skyrocketing 9.4 per cent after it announced plans to spin off its AI chip unit.
Closer to home, India's benchmark Sensex added a solid 0.6 per cent. Other notable gains in the region included Taiwan's Taiex, which rose 1.3 per cent, and Australia's ASX 200, which edged up 0.2 per cent. Markets in Tokyo, Shanghai, Thailand, and New Zealand were closed for the New Year.
Commodities, Currency, and the 2025 Backdrop
In the commodities market, silver prices rebounded with a 4.8 per cent increase after a week of sharp volatility, while gold gained 1.4 per cent. Oil prices saw a minor retreat, with US benchmark crude slipping 12 cents to $57.30 per barrel and Brent crude easing 13 cents to $60.72 per barrel.
In currency trading, the US dollar strengthened against the Japanese yen to 156.85, while the euro weakened slightly to $1.1733.
The strong start to 2026 follows an exceptionally robust year for Wall Street in 2025. Despite a weak finish in the final session, the year concluded with major annual gains: the S&P 500 rose 16.4 per cent, the Nasdaq soared 20.4 per cent, and the Dow Jones gained 13 per cent. This performance was underpinned by the AI frenzy, solid corporate earnings, and multiple interest rate cuts implemented by the US Federal Reserve.
Analysts remain watchful of the trends supporting this global rally. Shivaan Tandon of Capital Economics noted in a report, quoted by AP, that exports from most countries have surged recently, and the near-term outlook for Asia's export-oriented manufacturing sectors remains favourable. This sentiment appears to be reflected in the confident opening of financial markets worldwide as they step into the new year.
