Name: Global stocks kick off 2026 on a high as AI drives gains
Uploaded: 2026-01-02T17:57:11.943Z
Duration: 2 min 55 s
Description: The stock market is seeing boosts attributed to artificial intelligence. CBS News contributor Javier E. David has more.

The stock market is seeing boosts attributed to artificial intelligence. CBS News contributor Javier E. David has more.

Global stock markets have opened 2026 on a positive note, with artificial intelligence remaining a key driver of gains. Major technology companies are investing heavily in AI, particularly in chip manufacturing and infrastructure, although questions remain about the sustainability and long-term returns of these investments. 

Governments worldwide are adjusting industrial policies to prioritize AI, viewing it as both an economic and national security issue. Meanwhile, the U.S. housing market is seeing some relief as the Federal Reserve moves to cut interest rates, leading to slightly lower mortgage rates and providing modest incentives for prospective homebuyers.

Global stocks kick off 2026 on a high as AI drives gains

Global stocks are kicking off the new year on a high note and a familiar theme is driving those gains, artificial intelligence. It comes as big tech showed some extensive gains last year in 2025 thanks to AI chip manufacturing. For more on this, let's bring in CBS News contributor Javier David. He's also the business editor at the Dallas Morning News. Great to have you on, Javier, and happy new year. We've been talking about this a lot, right, AI having a big impact on the economy. So how is this country's involvement in AI development likely to impact the global market this coming year? And are those big investments actually sustainable? Yeah, look, economic trends generate a lot of buzzwords, but artificial intelligence isn't some meaningless word salad. It's more than just a catchphrase. It's very lucrative trade. It's the biggest macro trend driving markets and increasingly a way of life for everyone. Everything we do as a society is digital. So these publicly traded companies we talk about all the time, they're spending billions of dollars in this fight for the future. Is it sustainable? That's a really open question. But I do think that a lot of analysts are pointing to the fact that companies, tech companies now, are spending more and more on physical plants and data centers and things that involve real estate and creating energy. So that's a real question about how much more they can spend. And there's a lot of questions about whether or not it actually turns into a return on that investment. But, you know, AI in general is just kind of reshaping reality as we know it. It's touching on every aspect of modern life. It's why all these companies are shelling out all this money. And it's why every government on Earth now has an industrial policy that's tailored specifically for AI. And as much as we talk about the impact on markets, it really is viewed as a matter of national security and a totem of industrial policy. And Javier, you had mentioned real estate. So let's chat about that because the Federal Reserve is now leaning towards cutting interest rates again this year. And homebuyers are, of course, hoping the mortgage rates could follow suit. So what do you think we'll see in the housing market in 2026? Yeah, so we close out 2025 with a little bit of good news. The Fed cutting rates is, generally speaking, helpful for first-time buyers that are desperate to get their first home. Mortgage rates have been incredibly expensive. But they're inching lower. So they hit the lowest levels of the year, around north of 6%, which is still pretty high, certainly higher than most people that have mortgages. But it's an improvement. It's a modest incentive for buyers that have been kind of waiting for Godot when it comes to lower rates and cheaper home prices. And speaking of, the labor market stagnated, but home prices are finally coming off the boil. So that's expected to sort of continue in 2026. All told, we're starting the year with some fairly encouraging news and maybe some movement for a lot of buyers that have been sitting on the sidelines for a very long time. Okay, good to know. Javier Duvide, thank you so much.

Whenever, wherever, however - that's the Venezuelan President's offer to sell more oil to the U.S., as he pleads for diplomacy, not conflict. It comes after Washington hit five more alleged drug boats with airstrikes and reportedly struck Venezuelan soil for the first time. Meanwhile, the U.S. Coast Guard is in hot pursuit of an oil tanker which is suddenly claiming to be Russian.

Caracas

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U.S. President Donald Trump threatened on Friday (January 2) to come to the aid of protesters in Iran if security forces fire on them, days into unrest that has left several dead and posed the biggest internal threat to Iranian authorities in years.

Washington

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Israel says more than 30 aid groups have failed to comply with new rules to register their workers and will have access to Gaza suspended. The banned organizations say the rules will have horrific consequences during deadly floods as it tries to rebuild just months into a fragile ceasefire.

Jerusalem

Middle East Conflict

Israel’s ban on dozens of aid groups from Gaza begins

A U.S. intelligence assessment has determined that Ukraine is not responsible for what Russia claims was a drone strike targeting Vladimir Putin’s residence. Both Putin and Ukrainian President Volodymyr Zelenskyy gave year-end news conferences amid continuing discussions about a peace deal held up by key unsettled issues.

Moscow

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Zohran Mamdani was officially inaugurated as the mayor of New York City, becoming the first Muslim and first immigrant in half a century to hold the position. The public ceremony at City Hall featured Senator Bernie Sanders administering the oath of office, followed by a community celebration on Broadway.

New York

Mayor Zohran Mamdani inaugurated at New York’s City Hall

Taiwan’s president has struck a defiant tone after China launched fresh military drills near the island. In a New Year’s Day speech, Lai Ching-te said 2026 would be a critical year and vowed to defend Taiwan’s sovereignty.

Taipei City

Taiwan president signals tougher stance on Beijing

For several years, the French government has explored ways to limit teenagers’ access to social media due to its harmful impact on mental health, and new guidance from the European Commission could now make it easier for France to pass legislation on the matter.

Paris

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Israel will enforce a ban on 37 international NGOs in the Gaza Strip, citing failure to meet security and transparency standards.

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Zohran Mamdani became mayor of New York City just after midnight on Thursday, marking a historic moment with a low-key swearing-in ceremony held deep beneath Manhattan. The Democrat, who at 34 is the city’s youngest mayor in generations, takes office as one of the most closely watched political figures in the U.S.

Mamdani becomes New York City mayor

Dozens of people have been killed and 100 injured, most of them seriously, after a fire tore through a crowded bar during a New Year's Eve party in the upscale ski resort of Crans-Montana, Swiss officials said.

Crans-Montana

Dozens killed, 100 injured in fire in Swiss ski resort bar

President Donald Trump said his administration was removing the National Guard from Chicago, Los Angeles and Portland, but he added in his social media post that federal forces will "come back" if crime rates go up.

Chicago

Trump: National Guard being removed from Chicago, LA and Portland

Finnish police have seized a cargo ship suspected of sabotaging an undersea telecom cable between Helsinki and Estonia on December 31. Authorities say the vessel was sailing from Russia to Israel when it was intercepted in the Gulf of Finland.

Helsinki

Finland seizes Russia-linked ship over suspected cable sabotage

Russia's defense ministry released video footage on Wednesday (December 31) of what it said was a downed drone at a briefing intended to show Ukraine tried this week to attack a presidential residence and challenge Kyiv's denials that such an attack took place.

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Severe humanitarian needs in Gaza are worsening as dozens of aid groups are forced to halt operations under new Israeli restrictions.
Up to 48 organizations have stopped work, leaving fewer clinics, food distributions and shelters for civilians.

Israel to block dozens of aid groups working in war-battered Gaza

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Council of the City of Sydney

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CNN, citing sources, reported that the CIA had carried out a drone strike earlier this month on a port facility on the coast of Venezuela. U.S. President Donald Trump said the U.S. struck a facility where boats accused of carrying drugs "load up."

Trump says U.S. strike hit dock in Venezuela

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Trump says U.S. launched strike on boat dock inside Venezuela

Tatiana Schlossberg, the granddaughter of President John F. Kennedy and an environmental journalist, has died at the age of 35 following a battle with cancer, the JFK Library Foundation announced Tuesday.

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The United Arab Emirates says it's withdrawing its remaining forces from Yemen. The move comes after Saudi Arabia bombed a port in Yemen, saying it targeted an arms shipment intended for a UAE-backed separatist force.

Al Mukalla

Saudi Arabia bombs port in Yemen

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The UAE denies shipping weapons to Yemen after overnight Saudi strike

The Kremlin said Tuesday it would toughen its negotiating position in talks on ending the war in Ukraine after accusing Kyiv of attacking a Russian presidential residence — an allegation that Kyiv said was baseless and intended to prolong the conflict.

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China fired rockets into waters off northern and southern Taiwan on Tuesday (December 30) and deployed new amphibious assault ships alongside bomber aircraft and destroyers on the second day of its most extensive war games.

China fires rockets towards Taiwan in war games simulating blockade

President Donald Trump on Monday confirmed an alleged drug-related site was targeted during a recent strike, saying, "they load the boats up with drugs, so we hit all the boats and now we hit the area." Trump did not say when the strike happened or exactly where.

U.S. strike hits Venezuelan port facility

The search for Malaysia Airlines flight 370 that went missing in 2014 with 239 people on board is expected to resume Tuesday (December 30). The Malaysian government and a private marine robotics company say they will use advances in technology to aid in the search.

Kuala Lumpur

Search resumes for Malaysia Airlines flight that disappeared in 2014

The two countries have agreed to hold fire, freeze troop movements and allow civilians to return home under a new agreement.

Krong Poi Pet

Thailand-Cambodia ceasefire holds as 72-hour observation period ends

Head of Yemen's presidential council, which is supported by Saudi Arabia, says UAE-backed forces in the country should leave within 24 hours.

Yemen’s presidential council cancels UAE defence deal

U.S. President Donald Trump said the United States could support another major strike on Iran were it to resume rebuilding its ballistic missile or nuclear weapons programs and warned Hamas of severe consequences if it does not disarm.

Florida

Trump warns Iran of possible strike, urges Hamas to disarm

U.S. hit an area in Venezuela where boats are loaded with drugs, Trump says, as Pentagon carries out another deadly strike in the Pacific. This claim follows a series of U.S. strikes on boats in the Eastern Pacific, raising the total number of known strikes to 31 and resulting in over 100 deaths.

Trump claims attack on a dock in Venezuela, strikes kill two in Pacific

The Taiwanese government says it has placed its forces on alert as China intensifies its military presence in the Indo-Pacific Ocean and launches air, navy and rocket drills around the island.

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Ukrainian President Volodymyr Zelenskyy is denying Russian Foreign Minister Sergei Lavrov’s claim that Ukraine tried to attack President Vladimir Putin's residence in northern Russia.

Breakdown