Global Markets React to Trump Comments and AI Advancements

Asia-Pacific markets mostly fell on Thursday due to rising geopolitical tensions and comments from U.S. President Donald Trump. U.S. defense stocks fell after Trump said he would not permit defense companies to issue dividends or stock buybacks until they address his complaints. Japan's Nikkei 225 index fell 1.63%, while Hong Kong's Hang Seng Index declined 1.59%. Australia's S&P/ASX 200 closed 0.29% higher. Oil prices dropped overnight after Trump said Venezuela's interim authorities would turn over crude to the U.S., raising concerns about an increase in global supply. U.S. equity futures were little changed in early Asian hours.

The article discusses the recent developments in the 'Magnificent Seven' group of stocks, comprising major tech companies such as Alphabet (Google's parent company) and Apple. Alphabet's shares rose 2.4% on Wednesday, overtaking Apple in market capitalization for the first time since 2019, with a valuation of $3.89 trillion compared to Apple's $3.85 trillion. This shift is attributed to Alphabet's advancements in artificial intelligence (AI), including the deployment of new AI models and generators, which have garnered investor enthusiasm. In contrast, Apple's delayed launch of a smarter Siri, its AI voice assistant, has contributed to its relative underperformance. The article also touches on other news, including Venezuela's decision to ship sanctioned oil to the U.S. indefinitely, the initial public offering (IPO) of Zhipu, China's first major large language model company, and Samsung Electronics' expected tripling of its fourth-quarter operating profit due to increased demand for memory chips driven by AI. Additionally, Nvidia CEO Jensen Huang's endorsement of a particular AI-related company, whose shares an analyst believes could nearly double, is highlighted.

The stock market experienced a mixed performance on January 6, 2026, with the S&P 500 and Dow Jones Industrial Average ending the day in the red after snapping three-day win streaks. The Nasdaq Composite gained nearly 0.2%, driven by a 2.4% jump in Alphabet's shares, which led to its market capitalization surpassing Apple's for the first time since 2019. Crude oil prices dropped after President Donald Trump announced that Venezuela would turn over up to 50 million barrels of oil to the U.S., raising concerns about increasing oil supply. Investors are awaiting the Supreme Court's opinions on the legality of tariffs imposed by Trump, expected on Friday. Guggenheim Partners' CIO Anne Walsh advises being diversified and prepared to protect portfolios and take advantage of opportunities, as the stock market fundamentals remain fairly good with normalizing valuations and expected rate cuts ahead.