NEW YORK (AP) — Wall Street and other global markets are starting the new year on an upbeat note. The S&P 500 rose 0.4% early Friday, coming off a gain of more than 16% in 2025. The Nasdaq added 1%. But the Dow fell 60 points, or 0.1%. Benchmarks in Britain and South Korea hit records. Expectations that expanding use of artificial intelligence will spur demand for computer chips and other items needed to build out the data centers and the other infrastructure it requires boosted buying of tech-related shares. Nvidia and Google parent Alphabet each rose more than 2%. Treasury yields held steady.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

BANGKOK (AP) — World markets began 2026 with gains, with benchmarks in Britain and South Korea hitting records as optimism over the future of artificial intelligence carried over into the new year.

In early European trading, the FTSE 100 in London jumped 1% to an intraday record of 10,033.94. It was the first time the FTSE had surpassed 10,000, supported by heavy buying of precious metals miners such as Fresnillo, which gained 5.7%, and Anglo American, which was up 1.5%.

Miners have rallied due to recent gains in the prices of gold, silver and copper.

Germany's DAX added 0.5% to 24,619.41, while the CAC 40 in Paris surged 0.8% to 8,213.59.

The future for the S&P 500 was up 0.6% while that for the Dow Jones Industrial Average gained 0.2%.

Expectations that AI will spur demand for computer chips and other items needed to build out data centers and the other infrastructure it requires boosted buying of tech-related shares.

South Korea’s Kospi picked up 2.3% to 4,309.63 as the market’s biggest heavyweight, Samsung Electronics, shot up 7.2%. SK Hynix, which makes computer chips used for AI and has partnered with Nvidia, gained 4%.

Hong Kong's Hang Seng jumped 2.8% to 26,338.47 on a strong rally in tech shares.

E-commerce giant Alibaba climbed 4.3% and Baidu, maker of the Ernie chatbot, jumped 9.4% after it said it plans to spin off its artificial intelligence computer chip unit Kunlunxin, which would list shares in Hong Kong early 2027. The plan is subject to regulatory approvals.

Markets were closed in Tokyo, Shanghai, Thailand and New Zealand.

The S&P/ASX 200 in Australia edged 0.2% higher, to 8,727.30. Taiwan's Taiex was up 1.3% and the Sensex in India added 0.6%.

Recent manufacturing data for much of the region has been relatively weak, though trade has remained resilient.

“Exports from most countries have surged in recent months, and we think the near-term outlook for Asia’s export-oriented manufacturing sectors remains favorable,” Shivaan Tandon of Capital Economics said in a report.

U.S. stocks finished 2025 with a fourth day of losses, despite strong gains for the year. The S&P 500 gave up 0.7% and the Dow fell 0.6%. The Nasdaq composite closed 0.8% lower.

The S&P 500 set 39 record highs in 2025 and closed 16.4% higher for the year. The Nasdaq gained 20.4% and the Dow finished 13% higher.

Wall Street’s 2025 gains came as investors embraced the optimism surrounding artificial intelligence and its potential for boosting profits across almost all sectors.

But the market had no shortage of turbulence along the way. President Donald Trump eventually put his on-again, off-again tariffs on imported goods worldwide on pause while negotiating trade deals, helping to calm frayed nerves.

Strong corporate profits and three cuts to interest rates by the Federal Reserve also helped drive markets higher.

Wall Street is betting that the Fed will hold interest rates steady at its next meeting in January.

In other dealings early Friday, silver gained 4.8% after giving back 9.4% on Wednesday. It gained more than 140% in 2025.

Gold picked up 1.4%. It closed out the year with a 63.7% gain.

U.S. benchmark crude handed back early gains, falling 12 cents to $57.30 per barrel. The price of Brent crude, the international standard, fell 13 cents to $60.72 per barrel.

The U.S. dollar rose to 156.85 Japanese yen from 156.75 yen. The euro fell to $1.1733 from $1.1746.