Today’s Outlook:
• US MARKET : At the close of NYSE S&P 500 was up by 0.6%, while the Nasdaq 100 rose 0.7%. The Dow Jones Industrial Average rose 1%, or 484 points, to closing record high of 49,462.08. The S&P 500 and Dow closed at a record highs Tuesday, with the latter ending above 49,000 for first time ever as momentum in AI stocks helped offset weakness in energy stocks following strong gains for the latter a day earlier.
The jump in AI stocks boosted tech offsetting a stumble in energy, a day after the sector staged rally following the U.S capture of Venezuelan President Nicolas Maduro. At CES overnight, NVIDIA Corporation CEO Jensen Huang announced the company’s next-generation AI platform, Vera Rubin, was in full production. Huang also announced that the company is releasing Alpamayo, an open-source AI model aimed at accelerating autonomous vehicle development. Morgan Stanley analyst Joseph Moore noted that Huang spent more time than expected on Rubin at the event, which is typically consumer-focused. NVIDIA described demand for AI and Rubin as “skyrocketing.” Surging memory stocks added to last year’s significant gains, as the new AI chip architecture and continued demand are driving prices higher for storage and memory. Micron Technology Inc gained 10%, SanDisk Corporation jumped 23%, and Western Digital Corporation rose nearly 17%.
Several Federal Reserve members are set to offer their thoughts this week, potentially providing fresh insight into the Fed’s thinking on rate cuts ahead of Jan.30-31 meeting. Federal Reserve Governor Stephen Miran said the U.S. central bank is likely to need to cut interest rates by more than one percentage point in 2026, saying current policy is weighing on economic activity.
• EUROPEAN MARKET : The pan-European Stoxx 600 closed 0.6% higher, with Germany’s DAX adding 0.1%. British equities outperformed, rising 1.2%, while France’s CAC 40 fgained 0.3%. European shares traded higher on Tuesday as investors kept a close eye on fast-moving geopolitical developments, while broader risk appetite remained largely intact.
In Europe, attention also turned to fresh economic data. French consumer prices rose slightly less than expected in December, according to preliminary figures from statistics agency INSEE. France’s EU-harmonised inflation rate came in at 0.7% year on year, below the 0.8% expected by economists in a Reuters poll, offering some reassurance on the inflation front.
• ASIAN MARKET : Most Asian stock markets extended sharp gains on Tuesday, with Japanese shares hitting fresh record highs as technology and chipmaking stocks continued to rally, while South Korean equities edged lower from peaks ahead of Samsung earnings later this week.
Japan’s TOPIX index jumped 1.5% to a record high of 3,534.46 points, supported by broad-based buying across technology, industrial, and export-oriented stocks. The Nikkei 225 also hovered near record peaks, up 0.7%, underpinned by heavyweight semiconductor and electronics names.
Across the region, technology and chipmakers led gains, extending momentum built late last year. Investors continued to position for surging AI demand, particularly from data centres and advanced computing, while an ongoing supply crunch in key chip segments has bolstered pricing power and earnings expectations for major producers.
• COMMODITIES :U.S. crude oil futures fell further below post-settlement levels Tuesday despite the American Petroleum Institute showing a surprise draw in U.S. weekly crude supplies. Crude Oil WTI Futures, the U.S. benchmark, recently traded at USD 56.97 a barrel following the report after settling down down 2% at USD 57.13 barrel. U.S. crude inventories decreased by about 2.8M barrels for the week ended Jan. 2, confounding expectations for a build of about 1.2M barrels. Gasoline stockpiles increased by about 4.4M barrels, while distillate inventories — the class of fuels that includes diesel and heating oil — rose by about 4.9M barrels.
• INDONESIA :The JCI continued its upward move, closing in positive territory and marking a new all-time high with a 0.81% gain to 8,933.61. The next key level to watch is the psychological resistance at 9,000.The rally was supported by a range of attractive narrative catalysts heading into 2026, including capital injections for KBMI 1 banks (such as BNBA), increases in insurance core capital, and strength in oil-related stocks. From a conglomerate standpoint, names that saw little to no upward flow throughout 2025—such as those linked to the seasonal Panin Group catalyst—are starting to look more attractive, especially as other conglomerates have already enjoyed substantial rallies. Investors are advised to remain cautious and continue the trailing stops to manage portfolio risk.
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