Data-driven investors have a right to feel bullish. The latest labor numbers stayed firm; the inflation rate came in at a manageable level, and the 30-year mortgage rate ticked lower. The data may not signal the need for more rate cuts, but it also signals that the economy may not need them. It’s a win-win for those who believe stocks will move higher in 2026.
Bank earnings were generally good, but many stocks slid over valuation concerns. Could that be a theme for the rest of earnings season? Investors will learn more next week, as the reporting period ramps up.
U.S. markets will be closed on Monday in recognition of Martin Luther King Jr. Day. However, some important economic reports are still scheduled for release, including the October and November PCE index data, which will be published on Friday. These reports were delayed due to the government shutdown.
