OPENING CALL

Stock futures were up on the first day of trading of the new year after a strong ending of 2025.

Nasdaq-100 futures jumped 1% in early trading, following an AI-driven rally in Asia.

"With equity markets entering 2026 at all time highs and over reliant on AI success, no doubt the new year will bring volatility and reality checks. Yet, we continue to see further upside in equity markets amid a favorable growth-policy trade-off and a resilient corporate sector," said Barclays.

The data calendar is thin on Friday before it returns to regular releases next week, including labor market data, a key input for the Federal Reserve's policy.

Last week's Fed meeting minutes showed that some policymakers were reluctant to support further interest-rate cuts in the near term. Still, the minutes continued to highlight risks to the labor market.

Some relief came on the tariff front after Trump delayed by a year tariff increases on upholstered furniture, kitchen cabinets and vanities that were set to take effect at the start of the year. He also stepped back from hitting Italian pasta makers with antidumping duties of 92%.

Gold and silver were up on Friday as the rally in precious metals continued into the new year. Gold notched its largest one-year net gain on record last year, as Comex gold contracts climbed 64.5%. Silver also hit a record high in 2025 and more than doubled over the past year.

Stocks to watch

Baidu's shares jumped 9% in Hong Kong after its chip unit filed to go public there. The move comes as AI-related listings surge in the city.

Nio, Li Auto: The two Chinese EV makers posted strong sales, outperforming peers. American depositary receipts in both companies rallied ahead of the open.

Tesla is expected to report 2025 sales data on Friday. Analysts expect a roughly 8% annual sales drop, according to estimates Tesla published this week. Shares gained 2.5% premarket.

Wayfair, RH: Trump delayed by a year tariff increases on upholstered furniture, kitchen cabinets and vanities. Wayfair shares rose around 1% premarket. The levy threat in August sent shares in furniture importers tumbling.

Watch For:

Canada Manufacturing PMI for December

Today's Top Headlines/Must Reads:

-Global Stocks' Great Year Was About More Than the Dollar

-Sam Altman Is Trying to Take On the App Store. He's Got a Long Way to Go.

-The Next Class of Senators Won't Be Able to Dodge the Social Security Crunch

MARKET WRAPS

Forex:

The dollar traded steady against a basket of currencies and against the euro in quiet trade after the New Year holiday.

The euro fell to an 11-day low against the dollar after a weak eurozone manufacturing activity survey and as the dollar firms in thin, post-holiday trade.

Bonds:

Treasury yields rose.

In 2025, global bonds had their strongest year since 2020 , although there were significant divergences in performance, Deutsche Bank said.

Energy:

Oil was steady as prices hold around three-month averages. Prices are likely to move in a $55/bbl-$65/bbl range in 1Q 2026, Phillip Nova said. "The dominant theme across markets remains the supply-demand imbalance ."

Metals:

Gold rose as geopolitical tensions continued into the new year. Tensions between Saudi Arabia and the United Arab Emirates have risen as the states' proxies clash in Yemen, with geopolitical risk supporting the safe-haven asset .

Silver

Silver clawed back losses caused by the CME Group's increased margin requirements at the end of 2025. Heightened geopolitical tensions also supported silver levels.

The precious metal could benefit more than gold in a potentially declining interest rate environment said XS. Silver's high liquidity, ease of trading and relatively lower cost compared with gold makes it an attractive option as a safe-haven asset for both retail and institutional investors .

   TODAY'S TOP HEADLINES 

Orsted's Revolution Wind to File Injunction Against U.S. Construction Halt

Orsted said its U.S. joint venture would seek an injunction against the Trump administration's lease suspension order, which halted the construction of all U.S. offshore wind projects.

Revolution Wind, a 50-50 venture between the Danish renewable company and Global Infrastructure Partners' Skyborn Renewables, filed a supplemental complaint challenging the order, Orsted said. The complaint, filed in the U.S. District Court for the District of Columbia, would be followed by a motion for a preliminary injunction, it said.

BYD's Sales Growth Slowed in 2025, But Still Set to Top Tesla

Chinese auto company BYD's sales growth slowed significantly in 2025 amid intensified competition at home, but it was still set to top Tesla as the world's biggest electric vehicle company.

The Chinese EV maker said late Thursday that it sold 420,398 units in December, down 18% on year and marking its fourth consecutive month of sales decline. Its 2025 annual sales rose 7.7% to 4.60 million units, significantly lower than 2024's 41% jump.

Saks Prepares for Bankruptcy After Missing Debt Payment

Saks Global is preparing to file for bankruptcy within days after missing an interest payment on the debt it took on to buy Neiman Marcus, people familiar with the matter said.

Saks has struggled financially since taking on the debt burden in 2024, and the luxury retail chain's delays in paying vendors have contributed to weaker merchandise offerings-and sales. Saks is now in talks with its creditors about financing for the bankruptcy process, the people said.

Baidu's AI Chip Unit Kunlunxin Plans Hong Kong Listing

Baidu's AI chip unit Kunlunxin has confidentially filed an application to list on the Hong Kong stock exchange, the latest company to capitalize on the frenzy surrounding artificial intelligence.

Baidu, the Beijing-based search giant, said in a filing with the Hong Kong Stock Exchange on Friday that a listing application had been submitted on Jan. 1. It didn't provide any details about the size of the offering.

Global Stocks' Great Year Was About More Than the Dollar

Global diversification was a winner for American investors in 2025. Why?

Usually the answer to why one investment did better than another is simple: It went up more, or down less. The MSCI all-country world ex-U.S. index covers 85% of the equity opportunity set outside the U.S. The iShares exchange-traded fund that tracks it returned about 33% in 2025 to a U.S. investor. The S&P 500, meanwhile, returned around 18%.

Asian Factory Activity Gauges Signal Growth But Cost Pressures Cloud Recovery

The Asian manufacturing sector seems to be on firmer ground, wrapping up last year on an optimistic note as survey data signaled improving factory activity though rising cost pressures could cloud any recovery.

Purchasing managers index data from S&P Global released Friday showed improved manufacturing activity, including in export powerhouses Taiwan and South Korea.

The Condo Market Hasn't Been This Bad in Over a Decade

Condo owners are struggling with the worst market in more than 10 years.

Prices for U.S. condominiums posted their biggest annual decline since 2012 earlier last year. Single-family home prices have also slowed, but they are still up from the year-ago levels.

Trump Warns Iran Against Shooting Protesters

President Trump threatened to intervene if Iran cracks down violently on ongoing protests, putting more pressure on Tehran as it tries to contain discontent with its spiraling economy.

The warning comes as demonstrations that have run for nearly a week turned deadly, with clashes between protesters and police leaving several dead.

Modi Taps India's Consumer Power in Trade Fight With Trump

NEW DELHI-On a recent Sunday in India's capital, Shrey Dixit, a 22-year-old engineering student, proudly drove a khaki green, Indian-made Hyundai sport-utility vehicle off a dealership lot.

Dixit's household, with several branches of the family living together, had shared one car for nearly a decade. But after India sharply cut sales taxes in September, the family realized buying the second car they had their eye on was suddenly more than $1,000 cheaper.

Venezuelan Exiles Root for U.S. Military Action. Those Left Behind Oppose It.

LIMA, Peru-The millions of Venezuelans who have fled the rule of Nicolás Maduro stand largely in solidarity with compatriots who stayed behind-except on the question of U.S. military intervention to change the regime.

Most of the eight million Venezuelans living in exile see American military action as the best shot to bring back democracy in a country they fear they may otherwise never see again, polls show.

Write to priscila.barrera@wsj.com

TODAY IN CANADA

Earnings:

NA

Economic Indicators $(ET)$:

0930 Dec Canada Manufacturing PMI

Stocks to Watch:

Capstone Copper 50% of Mantoverde Mine Employees to Strike Immediately; Striking Workers Affiliated With One of Four Unions at Mantoverde; Striking Workers Represent About 22% of Total Workforce; Expects to Run Mantoverde at Up to 30% of Normal Production During Strike

Lundin Mining Announces Updated Share Capital And Completes Share Buyback For 2025; Press Release: Announces Updated Share Capital and Completes Share Buyback for 2025

All times in GMT. Powered by Onclusive and Dow Jones.

Expected Earnings for Friday

Bio-Path Holdings Inc $(BPTH)$ is expected to report for 3Q.

Black Titan Corp $(BTTC)$ is expected to report for 3Q.

Lifecore Biomedical Inc (LFCR) is expected to report $0.16 for 2Q.

Sonder Holdings Inc $(SONDQ)$ is expected to report for 3Q.

Taylor Devices Inc (TAYD) is expected to report for 2Q.

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ANALYST RATINGS ACTIONS

DigitalBridge Group Cut to Hold From Buy by Truist Securities

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January 02, 2026 06:02 ET (11:02 GMT)

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