As 2025 enters its final trading day, global stock markets are poised for their biggest gain in six years.

Driven by the Federal Reserve's interest rate cuts and the continued global investment boom in artificial intelligence, global stock markets are poised for a strong performance in 2025, potentially recording their biggest annual gain in nearly six years.

With only one trading day remaining in the year, the MSCI World Equity Index has already risen 21%, demonstrating the market's dynamism under multiple positive factors.

Asian markets are particularly strong, expected to achieve their third consecutive year of gains and their best annual performance since 2017.

This year, fueled by growing optimism regarding economic growth prospects, improved corporate earnings, and loose monetary policy, stocks have rebounded strongly from the April decline triggered by Trump's tariff policies, with major stock indices in many countries climbing to record highs.

However, as we approach 2026, the market faces new challenges.

Current stock prices are generally at high valuation levels, and investors should be wary of potentially increased volatility. At the same time, policymakers in various countries have shown significant disagreement regarding the direction and extent of further monetary easing, adding uncertainty to the market's direction next year.

"If the market is to continue its upward trend next year, the stock market will still need a Federal Reserve that maintains a dovish stance," said Amanda Agati, chief investment officer of Panix Asset Management Group, on Tuesday.

Despite these challenges, historical data still provides some basis for investor optimism: over the past decade, the MSCI World Equity Index has averaged a 1.4% gain in January, with positive returns in six of those years.

Overall, against the backdrop of a deepening AI revolution, gradual normalization of monetary policy, and the resilience of the global economy, the stock market in 2026 still presents structural investment opportunities, but volatility and selectivity may increase significantly. (Source: BLOCKBEATS)