Global stocks open on positive footing amid AI and tech optimism

Stocks opened the new year on a positive note with artificial intelligence and technology companies dominating market sentiment. Precious metals also advanced.

The market direction this year will be shaped by AI, the change of guard at the Federal Reserve and potential ‌market turbulence under US President Donald Trump, according to experts.

“Stocks have entered 2026 on a positive footing, buoyed by themes that defined much of last year’s rally,” said Tony Hallside, chief executive of Dubai-based advisers STP Partners. He added that strong momentum around AI and the semiconductor sector continues to support gains, alongside renewed investor interest in precious metals.

“The broader optimism is being fuelled by expectations of improved corporate earnings and the belief that last year’s key growth drivers, particularly in technology, still have room to run. That said, markets remain mindful of potential headwinds, including uncertainty around US monetary policy and elevated valuations in some segments. As the year begins, the prevailing sentiment is cautiously optimistic,” Mr Hallside said.

Stock performance

Markets in Japan and China were closed. Broader Asian markets rallied, with Hong Kong's Hang Seng Index gaining 2.76 per cent at 1.38pm on Friday, while South Korea’s Kospi climbed 2.27 per cent. India's main stocks measure, the BSE Sensex Index, advanced 0.64 per cent and Australia’s S&P/ASX 200 rose by 0.15 per cent.

S&P 500 mini equities futures are up 0.63 per cent while Nasdaq 100 futures gained 1.09 per cent. The UK’s FTSE 100 rose above 10,000 points for the first time on Friday. The pan-European STOXX 600 index rose 0.6 per cent.

In the Gulf, the Dubai Financial Market gained 0.77 per cent and Abu Dhabi Securities Exchange was up by 0.34 per cent.

The Saudi Tadawul All Share Index, Qatar Stock Exchange, Kuwait's main market, Bahrain's bourse and Muscat Stock Exchange remained closed.

“Across the region, economic reforms are bearing fruit and driving the investment case,” Hasnain Malik, head of emerging and frontier market investment strategy at Tellimer, told The National.

“But a stable oil price, after last year’s almost 20 per cent drop, is probably key for most investors to re-engage with the largest regional market, Saudi Arabia, where valuations are the cheapest relative to historical average.”

In 2025, global equity benchmarks posted strong returns: the FTSE 100 gained more than 21 per cent, while the S&P 500 and Nasdaq 100 posted returns of 16.4 per cent and 20.1 per cen