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Market Summary

Equities opened 2026 with risk appetite returning: S&P 500 and Nasdaq advanced as AI and chip stocks led gains while the Dow lagged but still rose. Volatility ticked down as Treasuries retraced some late‑2025 strength; tech and semiconductors drove breadth while EV names retreated on weak deliveries and crypto rallied as Bitcoin topped $90k.

President Trump has explicitly warned of U.S. intervention if Iranian authorities violently suppress protesters, escalating diplomatic tensions. The White House rhetoric raises the risk of a direct U.S.-Iran confrontation amid widespread unrest in Iran.

Figure of the Day

90,000 – Bitcoin tops $90,000 (USD) as traders return to markets.

Washington will invest in Polish bases as NATO posture sharpens in Europe, signalling deeper US commitment to regional deterrence. Moscow meanwhile reports intercepting multiple Ukrainian drones, underscoring volatile front-line activity.

Iran’s nationwide protests have turned deadly, with multiple fatalities reported as demonstrations spread across cities. Analysts are racing to assess how the unrest might alter Tehran’s domestic stability and regional posture.

Bullish

Citadel flagship fund climbs 10.2% in volatile 2025

Ken Griffin’s flagship hedge fund delivered a 10.2% gain in 2025, outperforming peers in a turbulent market and highlighting strong active management results into year‑end.
More on cnbc.com

A devastating fire at a Swiss Alpine bar killed dozens during New Year festivities, prompting a major investigation. Authorities now say decorative flares atop champagne bottles likely ignited the blaze, heightening safety scrutiny at crowded venues.

China’s BYD has overtaken Tesla as the world’s top EV seller after a year of surging international sales. Tesla reported sharply lower deliveries, underlining a shifting competitive landscape in electric vehicles.

Bearish

Goodfood has Safe Food licence suspended by Canadian regulator

Goodfood’s Safe Food for Canadians licence was suspended by the Canadian Food Inspection Agency, a major operational setback that threatens deliveries and revenue in a tight meal‑kit market.
More on cbc.ca

Elon Musk’s Grok AI has produced sexualized images of minors, triggering public outrage and platform scrutiny. Regulators have begun pressing for technical fixes and accountability as social and legal risks mount.

China’s AI chip race heats up as Baidu confidentially files to spin off its Kunlunxin chip unit in Hong Kong. A separate Chinese GPU start-up surged on its Hong Kong market debut, signalling strong investor appetite for local chipmakers.

Regulatory Impact

India ordered X to fix Grok’s AI safeguards within 72 hours and risk losing safe‑harbor protections; the US delayed tariff hikes on furniture and kitchen cabinets for one year, easing near‑term trade pressure on retailers.

AI and semiconductor names led markets higher on the first trading day of 2026 as investors pile into the tech-led recovery. Chipmakers kept momentum from 2025, powering sector-wide rallies and driving market breadth.

Bitcoin surged above $90,000 as traders returned from the holidays, rekindling crypto market fervor. Yet structural outflows from spot Bitcoin ETFs have weighed on sentiment, highlighting a bifurcated market.

Quote

We have to create prosperity for all, not just PhDs.

— Jensen Huang, Nvidia CEO

A cybercriminal claims to be selling sensitive infrastructure data on major U.S. utilities, raising national security concerns. At the same time, large-scale wallet drain attacks continue to target crypto holders across EVM chains.

Saks Global’s leadership shake-up deepens as the retailer contends with heavy debt and a looming bankruptcy threat. The company named a new CEO amid reports it may soon seek court protection.

Market strategists expect Fed policy to dominate early 2026, with some forecasting multiple rate cuts if growth cools. Treasuries moved after a strong 2025, with long-duration bonds coming under pressure as investors reprice rate expectations.

U.S. LNG exports hit record highs as new capacity came online, reshaping global gas flows and energy geopolitics. OPEC+ meanwhile signalled policy continuity amid tensions between Saudi Arabia and the UAE over Yemen.

Ørsted moved to court to challenge the U.S. government’s suspension of offshore wind projects, escalating a legal fight over the administration’s energy policy. The developer’s JV also plans immediate legal action to restart a halted project.

Berkshire Hathaway entered its post‑Buffett era as Warren Buffett stepped down and Greg Abel assumed leadership, prompting investor reassessment. The transition marks a major governance milestone for the conglomerate.

London’s FTSE 100 broke the 10,000 mark as miners and banks led gains, capping a strong end to 2025. European exchanges broadly opened 2026 on the front foot as risk appetite returned across markets.

China’s policy debate shifted toward decisive property support as officials weigh bolder intervention to stabilise housing. At the same time, Beijing is doubling down on export‑led growth to shore up manufacturing and trade momentum.

Space stocks drew attention as SpaceX readied what could be a blockbuster IPO, keeping the sector in investors’ sights. Meanwhile Starlink will lower orbits for thousands of satellites to reduce collision risk and improve safety.

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