## Weekly Trading Update: AI and Markets

This weekly update examines trading activity from the last week of December 2025 through the first week of January 2026. However, it is important to note that the available information does not contain specific news about AI agents or agentic AI trading developments. Instead, the market data reflects broader artificial intelligence momentum affecting global trading patterns.

## Market Optimism Driven by AI Infrastructure

Global markets began 2026 with renewed enthusiasm following developments in artificial intelligence technology. The primary driver of this optimism was China's AI sector, where DeepSeek published research on more efficient AI training methods, and tech company Baidu announced plans for an AI chip division to go public. These announcements sparked excitement among traders worldwide, though they relate to AI computing infrastructure rather than autonomous AI agent systems. The positive sentiment helped push Asian markets to fresh highs, with traders showing particular interest in companies supporting AI development.

## Hong Kong Stock Exchange Sees Major Gains

The Hang Seng Index in Hong Kong experienced impressive movement during this week. The index surged above 26,000 for the first time since December 8, advancing 2.8% on the first trading day of 2026. This represented particularly strong performance given that the index had been trading within a narrow range between 25,000 and 26,000. The excitement surrounding AI drove trading volumes, though some traders remained cautious because daily turnover remained below recent averages at 141 billion Hong Kong dollars, compared to the normal average of 256 billion Hong Kong dollars.

## New AI Company Listings Draw Massive Interest

One of the most dramatic trading events this week involved Biren Technology, China's first GPU company to list on Hong Kong's stock exchange. The company's shares surged 76% on its first trading day after attracting extraordinary retail investor interest, with over-subscription exceeding 2,300 times. Beyond Biren, ten additional companies planned to list on the Hong Kong exchange within two weeks, with several being AI-related firms like Zhipu AI and MiniMax, which develop artificial intelligence models. These IPOs were expected to raise over 26 billion Hong Kong dollars combined, reflecting strong trader enthusiasm for AI-focused companies.

## US Markets Show Strength Despite Mixed Signals

In the United States, equity markets demonstrated resilience throughout 2025 and into 2026. The S&P 500 advanced 16% during 2025, while the Nasdaq 100 climbed 20%, and the Dow Jones rose 13%. The S&P 500 established 39 new all-time highs during the year, showing sustained strength. However, traders should prepare for more volatile trading conditions ahead, as markets had experienced an unusually calm eight-month period, and elevated volatility may return. Tech sector stocks continued to lead trading activity, with AI-related investments broadening beyond just the largest companies.

## What Traders Should Watch Ahead

The week ahead contains several important announcements that will influence trading activity. Australia will release inflation data on Wednesday, which traders are watching closely because October's numbers came in higher than expected. China will report inflation numbers on Friday that could signal whether the country's economy is strengthening. Most importantly for US traders, the December non-farm payrolls report—measuring job creation—will be released, following disappointing November numbers. These economic reports will help traders and the US Federal Reserve decide whether interest rate policy should change, which affects all global trading.