World Stocks Rise as AI Optimism and Easing Policy Fuel Market Gains

World stocks rose sharply on January 6, 2026, driven by optimism in artificial intelligence and the expectation of continued easing monetary policy. The S&P 500 hit a record 6,944.82 as Amazon surged 3.4%, signaling renewed investor confidence in AI-driven growth. The Nasdaq 100 and European benchmarks also reached new highs, reflecting global enthusiasm for the sector.

Amazon’s performance marked a turning point after a 2025 period of heavy investment in AI infrastructure and data centers. The company’s success in the retail and cloud sectors has positioned it as a key driver of the S&P 500’s momentum, with analysts forecasting continued gains. Strong holiday sales and growing AWS revenue provided further support to the stock’s rally.

Central banks are navigating diverging policy paths as they start 2026. The Fed has cut rates three times already in 2025 and is expected to deliver two more 25-basis-point cuts by year-end. In contrast, the ECB is anticipated to remain on hold, while Australia and Japan are expected to raise rates. These differing approaches could impact global capital flows and risk-taking behavior.

Why Did This Happen?

AI optimism has been a major force in global equity markets. Amazon’s ability to monetize AI through its advertising and cloud segments has demonstrated tangible returns on massive investments, shifting the narrative from speculative spending to actual earnings. As a result, investors have reallocated capital toward AI-enabled firms, supporting broader stock gains.

The Fed’s dovish stance is also playing a role. With inflation easing and a focus on dual mandates, the U.S. central bank has signaled room for further cuts. This has reduced borrowing costs and supported risk assets across global markets.

How Did Markets React?

The S&P 500’s record close was a direct result of Amazon’s breakout. The company accounted for a significant portion of the index’s gain, illustrating the concentration of market leadership in a few mega-cap names. The Russell 2000 also rose, reflecting optimism that small-cap stocks may benefit from an easier monetary environment.

Copper prices surged to a record $13,187/t on the London Metal Exchange, driven by U.S. tariff uncertainty and supply concerns. The metal is being stockpiled ahead of potential new policies, pushing prices higher. Analysts from BMO and ING cited the speculative nature of the move and the lack of near-term supply buffers as key factors.

What Are Analysts Watching Next?

Investors are closely monitoring the U.S. labor market ahead of the December jobs report. The data will provide critical clues about the pace of rate cuts and the strength of the economy. A weaker-than-expected report could accelerate expectations for Fed easing, while stronger readings may delay further cuts. According to market analysis, the jobs report remains a key indicator for monetary policy.

AI-related valuations are also under scrutiny. Analysts have noted concerns about returns on AI investments and the sustainability of current spending levels. A potential correction in AI stocks could ripple through broader market sentiment, especially if debt levels among key firms rise.

Copper market participants are divided on the outlook. While some predict a near-term supply deficit due to mine closures and underinvestment, others expect ample global inventories to meet demand. Goldman Sachs and other institutions have issued mixed forecasts, with average prices expected to rise modestly in 2026.

Global equity markets appear poised for continued gains, driven by AI momentum and central bank easing. However, the path is not without risks. Political developments, supply constraints in key commodities, and potential AI valuation corrections could test investor confidence in the coming months. For now, optimism prevails, with analysts watching closely for signs of shifting momentum.