Key Points:

• Technology stocks including $NVDA, $AMZN and Alphabet viewed as primary market drivers

• Nasdaq, S&P 500 and Dow Jones poised for further record highs

• Australian dollar expected to see gains if 68.5 US cents is surpassed

• Crude oil prices predicted to remain volatile but trend softer in the months ahead

US equities have kicked off 2026 on a strong note, with the S&P 500 and Dow Jones hitting record highs. Peter McGuire from Trading.com sees familiar drivers powering this rally, such as artificial intelligence and tech sector momentum. According to McGuire, indices including the Nasdaq are nearing their all-time highs, and he anticipates that $NVDA could reach a $200 share price by the end of the month, reflecting ongoing enthusiasm for the technology sector. Major players like $AMZN and Alphabet are also highlighted for their impressive market capitalisation, approaching $4 trillion each.

McGuire notes that “fear of missing out” has kept investors engaged in these top-performing names, especially the so-called Magnificent Seven. He expects this overall momentum to remain intact into at least the end of the first quarter, with the potential for new record highs.

Turning to currencies, McGuire views the Australian dollar as gaining upside momentum, targeting 68.5 US cents in the weeks ahead, though he notes some caution until further direction is provided by incoming Federal Reserve policy announcements. On commodities, he points to continued volatility in crude prices, citing recent geopolitical events, but sees energy prices remaining softer through the first half of the year, with Brent expected closer to $50 than $60.