Quarterly Brief Capital market data as of 31 December 2025

The last quarter of 2025 rounded off a year marked by extraordinary advances in artificial intelligence and their impact on global capital markets. Investor enthusiasm for AI-driven growth propelled U.S. technology stocks to unprecedented valuations, with American chipmaker Nvidia becoming the world’s first company to reach a market capitalization of $5 trillion. Apple also briefly reached a $4 trillion valuation, though it closed the year below this benchmark, while Microsoft reached and sustained a $4 trillion market value, underscoring the dominant role of AI and cloud technologies in shaping market leadership. These developments helped drive both the NASDAQ and the S&P 500, reflecting the growing concentration of market performance among global technology leaders.

2025 was a pivotal year for global diplomacy, marked by shifting political and economic dynamics. In the fourth quarter, the United States undertook targeted enforcement actions in Venezuela related to sanctions and illicit trade, prompting diplomatic responses. At the same time, China demonstrated its ability to adapt to U.S. tariffs, with its annual goods trade surplus exceeding $1 trillion for the first time, driven by stronger exports to alternative markets, including the European Union. Elsewhere, renewed tensions between Cambodia and Thailand along their disputed border underscored persistent regional security challenges, even as diplomatic efforts continued.