CNBC Daily Open: A banner year for markets in 2025

• Google-parent Alphabet was the top performer among Magnificent Seven stocks, surging 65% in 2025 as its Gemini AI tool competed with OpenAI's ChatGPT
• Chinese automaker BYD overtook Tesla as the top seller of electric vehicles globally in 2025, signaling Chinese dominance in the EV market
• SpaceX is reportedly targeting a $1.5 trillion valuation for its upcoming IPO, which would surpass the record set by Saudi Aramco's public offering

Market Summary: 2025 Performance Review and 2026 Opening

Key Market Performance

The S&P 500 delivered strong returns in 2025, rallying 16.39%, driven primarily by artificial intelligence enthusiasm. On the first trading day of 2026 (Friday), the S&P 500 rose 0.19% after surrendering earlier gains of 0.7%. Britain's FTSE briefly broke the 10,000 level but closed at 9,951.14.

Sector and Company Highlights

Technology Winners:

• Alphabet (Google) led the Magnificent Seven with 65% gains in 2025, its best performance since 2009, fueled by investor excitement over its AI capabilities as a potential ChatGPT competitor
• Some tech pockets weakened toward year-end

Electric Vehicles:

• Chinese automaker BYD overtook Tesla as the top global EV seller in 2025, signaling dominance by Chinese manufacturers in the electric vehicle market

Emerging Markets:

• The MSCI Emerging Markets Index gained over 21% in 2025
• Colombia's stock market was the top performer, surpassing South Korea's AI-heavy exchange

IPO News:

• SpaceX is reportedly targeting a $1.5 trillion valuation for its public market debut, which would exceed Saudi Aramco's IPO record. Elon Musk confirmed reports of plans to go public this year as "accurate"

Economic Calendar

The year begins with the December U.S. nonfarm payrolls report scheduled for Friday.

Geopolitical Note: U.S. military action in Venezuela over the weekend created market uncertainty, with Secretary of State Marco Rubio appearing to walk back claims about U.S. control.