MPC Morning Call 7th January 2026 – AI Stocks lead market to new record highs
Stocks hit another record as AI stocks led the market higher as Nvidia CEO, Jensen Huang delivered a kweynote speech at the CES conference in Las Vegas
WATCH ON YOUTUBE AI-focused stocks surged following major announcements at CES, with NVIDIA leading gains after CEO Jensen Huang unveiled its next-generation. AI platform, Vera Rubin, and the open-source autonomous driving model Alpamayo. Investors cheered NVIDIA’s strong outlook, with analysts noting Huang’s emphasis on AI innovation even at a consumer-oriented event. The excitement extended across memory and storage chipmakers, as rising demand for AI infrastructure pushed Micron, SanDisk, and Western Digital sharply higher, lifting the broader tech sector. Meanwhile, energy stocks lost ground after recent gains tied to geopolitical developments, particularly the U.S. capture of Venezuelan President Nicolás Maduro. The strength in technology shares helped offset weakness in energy, keeping markets broadly supported. Investors increasingly see AI as the dominant driver of market sentiment heading into 2026, as chipmakers and related tech firms benefit from surging demand for power and computing capacity. In macroeconomic developments, attention turned toward upcoming Federal Reserve commentary and Friday’s U.S. jobs data. Fed Governor Stephen Miran suggested rate cuts of more than 100 basis points may be necessary this year, calling current policy overly restrictive and a drag on growth. Economists at Bank of America expect December’s jobs report to show a modest but stable increase in employment, shaping expectations for future rate moves. However, BofA maintained that the Fed under Chair Jerome Powell is unlikely to cut rates again in the near term, keeping investors cautious despite strong tech-led market momentum. Government Bond Yields Commodities, Energy & FX ASX Overnight: SPI 8701 (+0.45%) The Day Ahead: The ASX is due for a strong day if the banks can keep it together. Copper and Iron ore will drive the materials sector higher and the ASX dismal Tech sector currently sits vastly undervalued
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