Markets in Early 2026: A Rollercoaster Ride Amid AI Euphoria and Policy Shifts

Stocks entered 2026 positively, set against AI-driven market tensions and Federal Reserve changes. Precious metals continue surging, with gold and silver seeing record highs. Investor focus remains on U.S. economic strength and Fed policy. Oil prices slightly rebounded, after a notable decline last year, amid cautious optimism.

As 2026 begins, investors are bracing for a challenging year marked by an AI-driven market rally and potential policy shifts at the Federal Reserve, under the shadow of President Trump. Holiday-light trading showed positive momentum, continuing from a strong 2025, while Japan and China remained closed for festivities.

Precious metals, including gold and silver, extended their impressive gains from 2025, influenced by rate cuts and geopolitical uncertainties. Meanwhile, Asia-Pacific shares, led by Hong Kong's Hang Seng Index, performed well, while U.S. futures also inched higher, although European markets showed mixed results.

Attention is focused on the U.S. economy and potential Federal Reserve actions, following the government shutdown-induced delay in economic data. Observers are looking ahead at possible rate cuts as oil markets showed modest gains, contrasting a gloomy year-end performance in 2025.

(With inputs from agencies.)