Recent Market Performance & Key Indicators (as of January 9 weekly close)

The financial markets kicked off 2026 with impressive momentum. U.S. equity markets closed the week at or near record highs, driven by strong gains across major indexes. The S&P 500 notched all-time highs, the Dow Jones Industrial Average climbed above 49,500, and the Nasdaq Composite also rallied, reflecting broad investor optimism.

This strong performance was supported by a mixed U.S. jobs report for December — with job growth below expectations but the unemployment rate improving to ~4.4%. Investors cheered the lower unemployment read while interpreting slower hiring as potential justification for the Fed to hold rates steady in the near term.

For the week, small-cap stocks outpaced their large-cap counterparts, signaling renewed risk appetite. Treasury yields moved modestly amid the mixed data, and commodities such as energy and housing-related stocks outperformed as mortgage rate initiatives helped lift homebuilder shares.

In deal markets, early 2026 activity points to a revival in M&A, with multi-billion-dollar transactions gaining traction across tech and industrial sectors — a notable shift after a quieter period in the past two years.

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Earnings & Economic Reports: January 12 – January 16, 2025

Key Economic Releases to Watch:

• Consumer Price Index (CPI) — Inflation readings (headline and core) will give fresh insight into price pressures and shape expectations for future Fed decisions.
• Retail Sales & Producer Price Index (PPI) — Gauges demand trends and early inflation signs at the wholesale level.
• Existing Home Sales — A key barometer for the housing market, especially with recent mortgage rate developments.
• Weekly Jobless Claims & Industrial Production — Provide early signals on labor market resilience and industrial activity.

Estimated Highlights:

• CPI: Economists expect moderate inflation trends continuing, with headline and core inflation showing slight year-over-year increases — a positive backdrop for consumer demand and manageable inflation.
• Retail Sales: Anticipated to show stable gains, reflecting resilient consumer spending heading into the new year.
• Industrial Production: Expected to illustrate steady growth, though survey data suggests mixed momentum across manufacturing sectors.

Earnings Season Begins:
The corporate earnings calendar heats up midweek with banks and key tech firms reporting — these first results will set the tone for Q4 2025 and expectations for 2026. Analysts are looking for resilient margins, strong net interest income from financials, and continued AI-driven revenue growth in technology.

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Why Business Leaders Should Care

• Market Confidence Signals Opportunity: Record highs in major indices reflect strong investor sentiment. This is a favorable environment for capital raising, strategic expansion, or exploring acquisitions.
• Inflation & Interest Rates Still in Focus: CPI and jobs data this week will help senior leaders assess cost pressures and borrowing conditions — critical inputs for budgeting, pricing, and financing decisions.
• M&A Momentum Creates Strategic Options: With deal activity picking up, leadership teams should evaluate strategic partnerships, bolt-on acquisitions, or divestitures to strengthen competitive positions.
• Labor Market Nuances: Mixed jobs data means flexible workforce planning is key. Talent strategies that balance growth with operational efficiency will be rewarded.
• Sector Diversification Matters: Gains in energy, housing, and small caps suggest opportunities beyond tech for diversified portfolios and business lines.

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New Action Items for the Week

• Review your inflation assumptions in forecasts based on the upcoming CPI and PPI releases — adjust pricing strategies and cost plans proactively.
• Monitor earnings surprises midweek, especially from major banks and tech firms, to recalibrate guidance and competitive insights.
• Discuss capital deployment strategies with your finance team — identify areas where strong market valuations could enable opportunistic investments.
• Check labor market indicators against your hiring plans — mixed signals from jobs data suggest a nimble approach to workforce scaling.
• Explore strategic partnerships or acquisitions as renewed M&A activity broadens options for growth and market share expansion.