Stocks finished trading on Friday with the Dow Jones Industrial Average leading the major indexes higher as investors evaluate the 2026 landscape. The first full week of trading in 2026 will see economic data get back on track after last year’s disruptions due to the government shutdown. The December jobs report is expected to show a slowdown in hiring, with the unemployment rate expected to fall slightly. The Federal Reserve will also be in focus as traders price in an 85% chance of rates remaining unchanged. Expectations for the S&P 500 to rise 10% in 2026 are noted by Wall Street strategists.
In 2025, the S&P 500 rose over 16% and the Nasdaq Composite led gains with a 20% jump. Tech giants like Nvidia and Google outperformed the S&P 500, with strong profit growth supporting the tech sector’s performance. Wall Street strategists predict a 10% rise for the S&P 500 in 2026, with a focus on the tech and AI sectors. The market is compared to a “perennial gale” of innovation, with a close watch on how the market will evolve in 2026.
Economic data for the coming week includes ISM manufacturing numbers, while the earnings calendar remains light. The week will also see data on services PMIs and composite PMIs. Earnings reports are expected from companies like AAR Corp. and others. Additional economic data will focus on job cuts, job openings, factory orders, and more. Earnings reports will come from companies like Constellation Brands, Jefferies Financial Group, and others. The week will also include data on jobless claims, trade balance, and inflation expectations. Nonfarm payroll numbers for December will be a key focus, along with other data like housing starts and consumer sentiment. No notable earnings are expected.
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Read more at Yahoo Finance: December jobs numbers get data back on track during first full week of trading in 2026: What to watch