Evening digest: US stocks rally into 2026, Tesla stumbles on deliveries, Trump warns Iran

Global markets and geopolitics set a volatile tone for the start of 2026.

US equities are flashing renewed bullish momentum as investors rotate back into risk assets ahead of key economic data and earnings season.

Corporate developments underscore shifting sector dynamics, from mounting pressure in the electric vehicle space to consolidation in India’s fast-growing consumer market.

Meanwhile, geopolitical tensions re-escalate, with sharp rhetoric from Washington raising concerns over broader regional stability.

US stocks signal bullish momentum

US stocks opened 2026 on a positive footing, signaling renewed investor confidence after recent volatility.

Nasdaq and S&P 500 climbed as risk appetite returned to equity markets, suggesting traders are ditching defensive positioning.

The shift reflects improving sentiment ahead of earnings season and expectations for moderate Fed policy.

Tech megacaps, which faced profit-taking pressure late December, appear poised for fresh demand.

Market breadth is broadening beyond mega-cap darlings, a healthier signal for rally durability. Investors are watching Friday’s jobs report as a potential catalyst.

Tesla’s delivery miss signals tougher EV market headwinds

Tesla posted quarterly deliveries that fell sharply short of expectations, exposing mounting pressure in the EV market.

The miss marks a pivotal moment for Musk’s firm, which faces intensifying competition from both Chinese automakers and legacy players ramping up production.

Demand softness across key regions, particularly Europe and China, has become undeniable.

The numbers arrive as Tesla navigates pricing pressure, inventory challenges, and slowing consumer appetite for EVs amid broader economic caution.

Wall Street will scrutinise management’s commentary on demand visibility and capacity utilisation.

Devyani stock soars on $934 million merger

Devyani International’s shares climbed sharply after the company announced a transformational $934 million merger with a peer quick-service restaurant operator.

The deal consolidates India’s fragmented QSR landscape, creating a heavyweight in the fried chicken and pizza segments.

Devyani, which operates KFC and Pizza Hut franchises, will expand its footprint and operational scale through the combination.

Synergy potential centers on supply chain optimization, real estate efficiency, and technology integration.

The merger reflects investor appetite for consolidated plays in India’s growing casual dining market.

Devyani investors see upside from cost reductions and accelerated expansion.

Trump issues stark warning to Iran

President Donald Trump warned Iran Friday that the US stands “locked and loaded” to rescue protesters if security forces kill more demonstrators amid escalating unrest.

The threat follows at least seven deaths in clashes sparked by economic woes, including the rial’s collapse and soaring inflation.

Protests, now in their fifth day, have spread from Tehran to multiple provinces, with chants targeting Supreme Leader Khamenei.

Iranian officials fired back, accusing the US and Israel of stoking violence and warning any interference would destabilise the region.

Trump’s post on Truth Social marks a sharp escalation, echoing past tensions after US strikes on Iranian nuclear sites.

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