US stocks wrapped up Friday’s trading session on a positive note, driven by a strong performance from technology companies, marking a successful end to the first full week of trading in 2026 with notable gains across key indexes.
The rally on Friday resulted in record closing numbers for the Dow Jones Industrial Average and the S&P 500, with the Dow leading the indices with an impressive rise of over 2% for the week. The tech-focused Nasdaq Composite added nearly 2% over the same period, while the S&P 500 saw an increase of approximately 1.6%.
The oil market also experienced a notable uptick, influenced by the geopolitical landscape. Following the US military’s recent capture of Venezuelan president Nicolás Maduro and significant changes in the country’s oil sector due to actions from the Trump administration, oil prices surged. Futures for Brent crude oil rose by more than 3.7% throughout the week, and those for West Texas Intermediate gained around 2.6%.
Looking ahead, the economic calendar features crucial data releases, including consumer prices on Tuesday, and producer prices and retail sales reports on Wednesday. Investors are keen to grasp any hints regarding potential actions from the Federal Reserve, especially with a 95% probability being priced in that the Fed will maintain current interest rates at its meeting at month’s end.
Earnings season is set to commence, led by several major banking institutions. Noteworthy reports are expected from JPMorgan Chase and BNY Mellon on Tuesday, followed by Bank of America, Wells Fargo, and Citigroup on Wednesday. The following Thursday will see reports from salients like Goldman Sachs, Morgan Stanley, and crucial semiconductor manufacturer Taiwan Semiconductor.
In relation to employment trends, the December jobs report provided the final key insights for 2025’s labor market data, revealing the weakest job growth outside of a recession since 2003. The economy welcomed just 584,000 new jobs last year, a significant decline from over 2 million in 2024, reflecting a slowdown in growth. However, despite the cooling labor market, experts like Neil Dutta from Renaissance Macro noted that conditions are stabilizing rather than deteriorating rapidly.
Overall, the positive sentiment in the stock market indicates a potentially resilient economy as investors closely monitor upcoming economic indicators and corporate earnings that will shape market dynamics in the coming weeks.