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Daily Market Commentary

January 2, 2026

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January 2, 2026

Bonds & Stocks
A fresh burst of optimism around artificial intelligence sent stocks off to a strong start in 2026 on a day that also saw precious metals pushing higher. Nasdaq 100 futures advanced 0.9% on a flurry of AI news out of Asia that also drove the regional benchmark to the best open of a year since 2012. Nvidia Corp. rose 1.4% in premarket trading to lead gains among the Magnificent Seven. Europe’s Stoxx 600 hit an all-time high while the S&P 500 was set to climb 0.5% at the open. In the UK, the FTSE 100 briefly rose past 10,000 for the first time.

Economy
Oil declined on the first trading day of 2026 as expectations for a swelling supply surplus offset geopolitical risks to production in several OPEC+ nations. Brent crude futures traded near $60 a barrel, after capping an 18% slump last year — the biggest loss since 2020 — while West Texas Intermediate was at about $57. Middle Eastern markets, including derivatives like the regional Dubai benchmark, faltered amid heavy selling pressure on a key trading window in Asian trading hours, traders familiar with the matter said.

World
The Saudi Arabia-led coalition in Yemen carried out airstrikes against a rival group supported by the United Arab Emirates as the rift between the two Gulf powerhouses deepens over the conflict in the neighboring country. Hostilities erupted after the Saudi-backed National Shield Forces said Friday it would “peacefully” take over bases from the Southern Transitional Council, or STC, in Hadramout, Yemen’s largest province near the border with Saudi Arabia.

The information represented herein was obtained from various sources, which we believe to be reliable. Neither the information presented nor opinions expressed constitutes an offer to buy or sell any security. And it is not intended to guide the investor on which securities to buy, or when to buy or sell.