Alphabet hits record highs as AI momentum drives four trillion dollar valuation

South African Market Summary

South African equities extended gains, with the JSE All Share Index rising 1.73% to 120,148.14 points and the Top 40 advancing 2.03% to 112,315.32 points. Performance was driven by continued strength in resources, with the Resources 10 index climbing 5.73%, marking its fifth gain in seven sessions. Beyond markets, Eskom indicated a materially improved operating backdrop heading into 2026, citing progress under its Generation Recovery Plan. The utility reports 4,400MW of additional available capacity year on year, fewer emergency interventions and improved maintenance discipline, supporting confidence in grid stability.

European Market Summary

European equities closed at record levels, albeit with muted gains, as renewed political pressure on the US Federal Reserve reignited concerns around central bank independence. The STOXX 600 rose 0.2% to 610.95 points, while Germany’s DAX gained 0.6% to a fresh high, extending its winning streak to ten sessions. Precious metals stocks outperformed, offsetting weakness in autos and select consumer names. Corporate developments weighed, with Heineken sliding on CEO succession news and Porsche declining on earnings concerns. UK data pointed to softening consumer demand, reinforcing a cautious regional macro backdrop.

American Market Summary

US equities closed at record highs, with the S&P 500 and Dow Jones Industrial Average advancing as investors largely looked through renewed political pressure on Federal Reserve Chair Jerome Powell. Gains were led by technology and consumer staples, with Walmart outperforming ahead of its inclusion in the Nasdaq-100, a move expected to attract significant passive inflows. Market sentiment stabilised after early weakness, despite concerns over central bank independence. Attention now turns to the start of earnings season, led by US banks, alongside upcoming inflation data that will shape expectations for further Federal Reserve rate cuts.

Asian Market Summary

Asia-Pacific markets traded higher, with investors largely looking through geopolitical tensions and renewed scrutiny of US Federal Reserve leadership. Japan led regional gains as the Nikkei 225 surged 3.4% and the Topix rose 2.13% on the market’s return from a holiday, amid reports that Prime Minister Kishida’s government may call a snap election. In corporate news, China-based GigaDevice Semiconductor surged on its Hong Kong debut following a sizeable secondary listing, while Singapore’s Atome expanded its syndicated debt facility to support regional growth in digital consumer finance across Southeast Asia.

Currency Market Summary

The South African rand strengthened in early trade, supported by gold prices extending to fresh record highs as investors sought safe-haven assets. Global currency markets remained cautious after the US administration opened a criminal investigation into Federal Reserve Chair Jerome Powell, reviving concerns over central bank independence and confidence in US policy credibility. The development weighed on the dollar and US Treasuries, reinforcing demand for gold. While market reactions reflected elevated unease, the sell-off in US assets remained relatively contained compared with prior episodes of policy-driven volatility, limiting broader spillovers into emerging markets.

Commodity Market Summary

Oil prices edged higher as escalating geopolitical risks around Iran outweighed concerns over potential additional supply from Venezuela. Heightened unrest in Iran, a key OPEC producer, and warnings of possible US military action have increased the risk of supply disruptions and added a geopolitical premium to crude markets. These concerns offset expectations that Venezuela could return barrels to global markets following political change in Caracas. Broader risk aversion was evident across asset classes, with safe-haven demand lifting precious metals amid renewed global uncertainty and elevated sensitivity to political and policy developments.

Shuka Minerals Plc (SKA) -2.78%

Shuka Minerals has provided an update on the financing underpinning its proposed acquisition of Leopard Exploration and Mining Limited, owner of the Kabwe Zinc Mine in central Zambia. The Company expects to shortly receive £815,000 from Gathoni Muchai Investments Limited under an increased loan agreement entered into in June 2025, having received confirmation of payment instructions dated 12 January 2026. Receipt of these funds will enable Shuka to settle the cash consideration payable to the LEM vendors and progress completion of the transaction. The announcement constitutes inside information under UK MAR and reflects continued execution against Shuka’s African growth strategy.

Alphabet Inc. (GOOGL) +1.00%

Alphabet briefly reached a $4 trillion market capitalisation as renewed confidence in its artificial intelligence strategy propelled the stock to record highs. Investor sentiment has been underpinned by strong uptake of the Gemini platform, including a multi-year agreement with Apple to base next-generation AI models on Google technology and growing adoption among major device manufacturers. Momentum has been reinforced by rapid expansion at Google Cloud, driven by AI workloads, proprietary chip monetisation and a rising contract backlog. Advertising revenues have remained resilient, while easing regulatory pressure and improved competitive positioning have helped Alphabet outperform peers and reclaim leadership within global mega-cap technology.

Moderna Inc. (MRNA) -1.34%

Moderna expects 2025 sales of approximately $1.9 billion, near the upper end of guidance but far below pandemic-era levels, reflecting stabilising demand following the post-COVID downturn. Lower-than-expected declines in US vaccination rates and disciplined cost control supported the outlook, with operating expense guidance reduced and year-end cash now forecast at $8.1 billion, bolstered by new debt funding. Management reiterated its ambition to return to revenue growth of up to 10% from 2026, supported by a diversified pipeline. Regulatory milestones and key clinical data across influenza, combination vaccines and oncology are expected to shape the medium-term recovery trajectory.

Paramount Skydance Corporation (PSKY) +0.75%

Paramount Skydance has escalated its takeover battle for Warner Bros Discovery by filing a lawsuit seeking greater disclosure around Warner Bros’ support for a rival $82.7 billion Netflix transaction. The company argues its $108.7 billion all-cash offer provides superior value and clearer regulatory outcomes than Netflix’s cash-and-stock proposal, which involves a cable business separation. Paramount has also signalled intentions to nominate directors and amend bylaws to strengthen shareholder oversight. The dispute heightens execution and governance risk for Warner Bros investors, with the outcome likely to hinge on shareholder voting dynamics and deal termination costs.

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