Best and worst performers in the first half of 2026

South Korea's KOSPI index has emerged as the standout performer in global equity markets during the first half of 2026, according to a market review. The index surged as investor sentiment shifted dramatically from the start of the year, when precious metals and AI-related stocks were the dominant themes.

For traders focused on interest rates and central bank policy, the rotation reflects changing expectations for Federal Reserve rate cuts. In January, markets priced in aggressive easing, partly driven by political pressure on Fed Chair Powell. However, as the first half progressed, resilient economic data and sticky inflation forced a repricing, with rate-cut expectations scaled back. This shift weighed on rate-sensitive sectors like precious metals and big tech, while export-oriented markets like South Korea benefited from a weaker dollar and improved global trade outlook. Traders can track these moves on NowPrice's live rates dashboard to monitor real-time shifts in rate expectations and equity indices.

Looking ahead, the second half of 2026 will hinge on upcoming US inflation data and Fed meetings. The AI trade's resilience will be tested by earnings reports from major tech firms, while geopolitical risks and trade policy under the Trump administration could further alter the landscape. Key levels for the KOSPI and other top performers will be closely watched as markets adjust to the new rate environment.