The Month in a Minute
2026 got off to an eventful start, as markets continued to reward AI leaders, while scrutiny increased for any tech companies lagging behind. Outside the US, returns in Europe, Asia, and Emerging Markets created cautious optimism. Both Wealthify Original and Ethical Plans underperformed their benchmarks.
Strong starts, new milestones, and familiar volatility.
There were no post-Christmas blues for the markets, with January getting off to a good start thanks to broadly positive returns. Milestones were set in both the UK and US, with new records for the FTSE 100 and S&P 500, respectively.
However, geopolitical turbulence created familiar market turbulence, following the US’ confrontation with Venezuela, and headlines about Greenland leading to renewed tariff concerns.
The Federal Reserve held rates steady, but Kevin Warsh’s nomination as the next Chair sparked a sharp sell-off in gold. Smaller US companies and value stocks performed particularly well, while defence stocks surged in line with rising global tensions.
UK and European markets were less affected by US volatility and generally performed well. Asia and Emerging Markets – benefitting from the dollar hitting a four-year low – came out on top with the strongest returns.
AI-related developments helped drive gains in Asia. Chipmakers such as Taiwan Semiconductor and SK Hynix climbed, as demand rose for the high-performance chips used in AI data centres.
Higher commodity prices also lifted Emerging Markets that rely heavily on natural resources. Oil rose after five straight months of declines, and precious metals increased, helping Brazil’s stock market jump more than 16%.
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