A strong and symbolic start to 2026.
The breadth of the move matters more than the headline gains. Strength in ASML and Micron signals renewed confidence across the semiconductor value chain, not just at the AI platform level. Continued momentum in Nvidia and Broadcom reinforces the view that capital expenditure on compute, memory, networking and tooling remains structurally strong rather than narrowly speculative.
On the January Effect, I would frame it more cautiously. Historically, January strength tends to work best when it aligns with fundamentals. Earnings revisions are positive, liquidity conditions are supportive, and leadership comes from economically sensitive and high-quality growth sectors. When those conditions hold, January strength often reflects genuine risk appetite rather than seasonal superstition.
The more useful question may be this: are new highs being confirmed by multiple leaders, or carried by a few crowded names? If your portfolio is seeing fresh highs in semiconductors, infrastructure software, or beneficiaries of sustained capex cycles, that is a healthier signal than a short-lived calendar bounce.
So rather than believing in the January Effect per se, I would say this looks like January validating an existing trend, not inventing one.
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