CNBC Daily Open: Takaichi and the AI trade in focus this week

• Big Tech led U.S. gains with one unnamed stock jumping 9.6%, helping the Nasdaq climb 0.9% and S&P 500 rise 0.47% to another record close
• Alphabet plans to raise funds from a U.S. dollar bond sale including a 100-year sterling-denominated bond, despite warning of potential 'excess capacity' in data centers
• S&P Global Ratings lowered China property sales forecast for 2026 to a 10-15% decline, worse than the October prediction of 5-8% decline

Market Summary: Takaichi Trade and AI Developments Drive Markets

Key Market Movements:

U.S. markets advanced Monday, with the S&P 500 gaining 0.47%, Nasdaq climbing 0.9%, and the Dow ticking up 0.04% to a fresh record close. Japanese stocks surged to new highs following Prime Minister Sanae Takaichi's landslide election victory, fueling the "Takaichi trade"—a bet on stronger equities and a weaker yen driven by expectations of looser monetary policy and increased government spending.

Technology Sector Highlights:

Big Tech rallied significantly, with one major stock jumping 9.6% and another advancing 3.1%. However, concerns persist about heavy capital expenditures and data center overcapacity. Alphabet warned of potential "excess capacity" risks in its recent filing, yet plans to raise funds through a U.S. dollar bond sale, including a 100-year sterling-denominated bond. Meanwhile, ChatGPT CEO Sam Altman reported the platform is "back to exceeding 10% monthly growth," suggesting strong industry momentum.

Corporate and Regional Developments:

• China Real Estate: S&P Global Ratings downgraded its 2026 forecast for China property sales, now expecting worse declines than the previously predicted 5-8% drop
• Pharmaceutical Litigation: Novo Nordisk sued Hims & Hers over mass marketing of compounded versions of Wegovy obesity treatments
• Cuba Energy Crisis: International airlines can no longer refuel in Cuba due to fuel shortages, following U.S. sanctions on countries supplying oil to the island

Investment Strategies:

Commodity trading advisors (managed futures funds) are capitalizing on volatility in precious metals markets as gold and silver prices fluctuate significantly.

European markets also advanced, supported by positive corporate earnings revisions.