Global stock markets continued their gains, Nasdaq futures rose before the market opened, spot silver rose more than 3% during the day, and Lun Copper reached a new high

# Source: Wall Street Insights  By Zhang Yaqi

U.S. and European equity futures edged higher on Tuesday, indicating the upward momentum is poised to extend. Nasdaq 100 futures rose 0.3%, as Jensen Huang stated that demand for chips remains "extremely robust". London Metal Exchange (LME) three-month copper surged as much as 3.1% to hit an all-time high of $13,387 per tonne, surpassing the record set on Monday. Gold ticked up 0.2% to climb above $4,460 per ounce, while silver rallied more than 3% intraday.

Investors are pouring into Asian and emerging markets with unprecedented enthusiasm, driving global stock markets to repeatedly refresh record highs. On Tuesday, U.S. and European equity futures traded higher, signaling room for further gains. Nasdaq 100 futures advanced 0.3%, after NVIDIA CEO Jensen Huang commented that chip demand is "very strong". U.S. Treasury yields moved higher, while the U.S. Dollar Index edged slightly lower.

Asian tech stocks led the rally. According to reports from Jiemian News and other media outlets, Samsung and SK Hynix are seeking to raise server DRAM prices by 70%. Market analysts believe that the price hike will likely focus on the DDR5 and HBM segments, which are also the areas that benefit the most obviously from AI-driven demand.

In the commodities market, LME three-month copper jumped as much as 3.1% to a historic peak of $13,387 per tonne, breaking the record established the previous trading day. Gold inched up 0.2% to above $4,460 per ounce, and silver soared over 3% within the day.

U.S. and European equity futures traded higher, with Nasdaq 100 futures up 0.3%.

South Korea’s KOSPI broke through the 4,500-point mark. SK Hynix rose 3.3%, hitting a record high. Japan’s Nikkei 225 gained over 1%, approaching the record peak set last year. The Tokyo Stock Price Index (TOPIX) also notched a new all-time high.

U.S. Treasury yields ticked slightly higher, with the benchmark 10-year yield rising nearly 2 basis points to 4.18%.

Gold edged up 0.2% to climb above $4,460 per ounce, while silver surged more than 3% intraday.

LME copper prices hit a new record high, with the gain widening to 3%.

WTI crude oil fell 0.3% to $58.16 per barrel.

## Valuation Gap Drives Capital Shift

In a report released on Monday, Serena Tang and Seth Carpenter of Morgan Stanley wrote that 2026 will be a "strong year for risk assets", as the triple combination of fiscal, monetary and regulatory policy easing will work together in a pro-cyclical manner.

For equity markets, particularly in the U.S., the main themes will be stronger earnings growth and broader market leadership, while a recovery in AI financing and merger and acquisition activities will take center stage in the credit market. The institution maintains an **overweight** stance on global equities. Adrian Helfert, Chief Investment Officer at Westwood, commented:

"The bullish case for stocks remains intact. Barring cascading geopolitical events, broader market leadership should largely look past the situation in Venezuela."

The Japanese market delivered particularly standout performance, with the TOPIX surging over 1.4%. Hideyuki Ishiguro, Chief Strategist at Nomura Asset Management, noted that retail investors’ New Year stock-buying activity may have driven part of the gains. Tomo Kinoshita, Global Market Strategist at Invesco Asset Management, argued that many foreign investors are likely to re-enter the Japanese market in the New Year, as the pressure to rebalance portfolios before the end of 2025 has subsided.

Billy Leung, Investment Strategist at Global X Management, said:

"Valuations across most of Asia remain reasonable relative to growth, while U.S. tech stocks are already fully owned. This is not a speculative January rally, but more like an early repositioning toward Asia’s growth and AI cycle. Earnings performance will be the key test ahead."

Bloomberg strategists pointed out that investors are clearly eager to pour into stocks, including AI-related names, but they seem reluctant to make large bets on U.S. equities. This may be because U.S. stock valuations are elevated relative to their own long-term averages and all major Asian benchmark indices.

## Copper Prices Hit Record Highs as Investors Bet on Tightening Global Supply

On Tuesday, LME three-month copper surged as much as 3.1% to an all-time high of $13,387 per tonne, exceeding the record set on Monday. Market concerns that the Trump administration may impose tariffs on refined copper have driven copper flows to the U.S. market, which could lead to supply shortages in other parts of the world.

Li Xuezhi, Director of Futures Research at Chaos Tiansheng Futures, stated that inventories used to act as a buffer, but now they are all hoarded in the United States, so the buffer has disappeared and everyone has to scramble to purchase supplies.

Base metals have started 2026 on a very strong footing. The LMEX index, which tracks six major metals, has surged to its highest level since March 2022. Copper prices have risen more than 20% since late November last year, while aluminum prices have also climbed to their highest level in over three years. Li noted that the logic behind this rally still holds, and it is necessary to track the trend rather than obsessing over absolute price levels.

In other market segments, the Bloomberg Dollar Index fell for the second consecutive day. U.S. Treasury yields edged slightly higher, with the benchmark 10-year yield rising nearly 2 basis points to 4.18%. U.S. manufacturing activity contracted in December at the sharpest pace since 2024, reinforcing the case for further policy easing by the Federal Reserve and weighing on yields earlier in the session.

Precious metals reversed their early weakness. Gold ticked up 0.2% to climb above $4,460 per ounce, while silver jumped more than 3% intraday. Oil prices stabilized after posting their biggest weekly gain in a week.

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