Global stock markets defied conventional expectations in 2025, balancing robust gains with unprecedented volatility amid trade policy shifts, evolving monetary cycles, and the ascendancy of AI-driven growth. With broad indices nearing all-time highs and investor focus pivoting from macro headlines toward quality earnings and sustainable fundamentals, the market narrative has fundamentally shifted. This article explores the forces that redefined valuation benchmarks last year and outlines the key themes that will shape equity performance in 2026.

The main theme this year was undoubtedly the dominance of the technology sector, or rather its core related to artificial intelligence. AI became the main narrative of the year. Compared to previous years, the market began to differentiate more between companies that can effectively monetise these technologies and those whose valuations were driven by sentiment rather than fundamentals. This was reflected in the fact that the stocks of the AI…