Stock markets reopened after the New Year’s Day holiday with a positive start on Friday, building on a strong 2025 that was driven by a surge in artificial intelligence (AI) investment.
Global market performance
London’s benchmark FTSE 100 extended its rally into the new year, briefly surpassing the 10,000-point level for the first time. The index reached an intraday high of 10,046.25 points before easing to 9,995.51 points by mid-afternoon.
The FTSE gained 22% in 2025, marking its best annual performance since 2009. Last year also saw strong gains across major global markets, with the S&P 500 rising 16.4% and the tech-heavy Nasdaq climbing 20.4%. London’s market also recorded its best Christmas period in 16 years.
Asian markets posted solid advances in 2025, with gains seen in Taipei, Singapore, Manila, and Jakarta. Hong Kong’s Hang Seng Index was up 2.76% at 26,338.47 points by mid-afternoon on Friday.
Investor enthusiasm for AI-related stocks underpinned last year’s rally. The Hang Seng Index rose 28% in 2025, while Japan’s Nikkei advanced 26%. South Korea’s stock market posted standout gains, with Seoul shares surging 75% and the Kospi Index rising 76%, supported by accelerating AI investment.
Optimistic outlook
The boom in AI spending helped support the resilience of global stock markets in 2025, and adoption of AI technologies is expected to continue into 2026. Despite concerns around US tariffs, geopolitical tensions, and anticipated interest rate cuts, Wall Street analysts remain broadly optimistic about market prospects in the year ahead.
“This year’s gains have shown that the bull market is all gas, no brakes,” said Hardika Singh, an economic strategist at Fundstrat. “There are few solid reasons to believe this run can’t extend into the next year.”
What to look for
The New York Stock Exchange and Nasdaq are set to resume trading on Friday following the New Year’s Day closure. The NYSE Composite Index last ended 0.65% lower at 22,003.93 points on December 31, while the Nasdaq Composite slipped 0.76% to close at 23,241.99.
