U.S. Equity Markets Start 2026 Strong: U.S. equity markets kicked off 2026 with solid gains, capping a strong first full week of the year. The S&P 500 rose 0.7% on Friday and is now up 1.8% year-to-date, while the Russell 2000 has surged 5.8%, outperforming large-cap stocks.
Greenland Rejects U.S. Takeover: Greenland's leaders united to reject President Trump's push for U.S. control of the island, emphasizing sovereignty and overwhelming public opposition to a takeover.
Netflix Stranger Things Documentary: Netflix announced a behind-the-scenes documentary on the final season of Stranger Things, giving fans an intimate look at the making of the series' emotional conclusion.
Trump Calls for Credit Card Rate Cap: President Trump renewed his call to cap credit card interest rates at 10% for one year, though the proposal lacks details and would require congressional approval.
T-Mobile Launches New Plan: Facing rising customer churn, T-Mobile launched a new value-focused wireless plan with long-term price locks and bundled perks to compete with rivals and lower-cost alternatives.
Nvidia Unveils Alpamayo AI: Nvidia unveiled its Alpamayo autonomous driving AI at CES, positioning the technology as a major leap toward human-like self-driving and a direct challenge to Tesla and Waymo.
Trump Protects Venezuelan Oil Revenue: President Trump signed an executive order meant to protect Venezuelan oil revenue from being used in judicial proceedings.
Short-Term Treasury Yields Rise: Short-term Treasury yields rose after December's payrolls report showed little sign of labor-market stress, prompting investors to hedge against near-term Fed rate cuts.
Long-Term Bonds Rally: Longer-dated bonds rallied, supported by President Trump's directive for Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities.
Dollar Strengthens: The U.S. dollar continued to strengthen, rising 0.8% year-to-date against a trade-weighted basket of currencies.
Oil and Gold Move Higher: WTI oil prices jumped 2% amid renewed geopolitical tensions involving Iran, while gold climbed above $4,500 per ounce.
December Payrolls Show Sluggish Hiring: Nonfarm payrolls increased by just 50,000 in December, and job gains from the prior two months were revised down by 76,000. Payroll growth in 2025 totaled 584,000, compared with 2 million in 2024, with federal job cuts of 277,000 explaining part of the slowdown.
Unemployment Rate Stabilizes: The unemployment rate fell to 4.4%, suggesting labor market stabilization despite sluggish hiring.
Federal Reserve Policy Outlook: The Fed has cut rates at its last three meetings but has signaled it may pause in January.
General Motors Reports Q4 Charges: GM fell after announcing $7.1 billion in fourth-quarter charges tied to weaker EV demand and restructuring efforts in China.
Oklo and Vistra Surge: Oklo climbed 17% and Vistra gained 14% after Meta announced support for nuclear projects with both companies to help power AI data centers.
Housing Stocks Jump: Housing-related stocks rose after President Trump said he wants "representatives" to purchase $200 billion in mortgage bonds to improve affordability, though details remain unclear. Rocket Companies rose 4.6%, Opendoor Technologies gained 8%, and homebuilders Lennar and D.R. Horton each rose about 2%.
Intel Advances: Intel rose 2.5% after receiving public praise from President Trump following a meeting with its CEO.
Constellation Energy Jumps: Constellation Energy climbed 5% after TD Cowen initiated coverage with a buy rating.
Mining and Rare Earths Rise: Mining and rare earth stocks moved higher after reports that Rio Tinto and Glencore are in talks to form the world's largest mining company, with silver and copper climbing 3% and 2%, respectively.
Bitcoin Slips: Bitcoin fell about 0.6% but remained above $90,000, while crypto-related stocks traded mixed.
GDPNow and Inflation Expectations: Atlanta Fed's GDPNow estimate for Q4 GDP jumped to 5.4%, and the New York Fed's survey showed one-year inflation expectations rising to 3.4%, while longer-term expectations remained unchanged.
Consumer Sentiment Rises: University of Michigan's preliminary January consumer sentiment rose to 54 from 52.9, marking the second consecutive gain and the highest level since September.
Bank of America Supports Bitcoin ETFs: Bank of America announced that advisors across Merrill, Bank of America Private Bank, and Merrill Edge can now proactively recommend the top four most liquid spot Bitcoin ETFs to clients.
Greenland Leaders Reject Trump's Push for U.S. Control: "We Want to Be Greenlanders"
Greenland's political leaders have firmly rejected President Trump's renewed calls for the United States to take control of the island, insisting that Greenland's future must be decided by its own people. "We don't want to be Americans, we don't want to be Danes, we want to be Greenlanders," Prime Minister Jens-Frederik Nielsen and four party leaders said in a joint statement Friday. Trump said Friday that he wants to acquire Greenland, calling it "the easy way," and warned that if the U.S. does not act, Russia or China could move in—an assessment disputed by Greenland and other NATO allies.
Trump Calls for One-Year Cap on Credit Card Interest Rates at 10%
U.S. President Donald Trump on Friday called for a one-year cap on credit card interest rates at 10%, set to begin on January 20, 2026, though he did not outline how the proposal would be implemented or enforced. Trump reiterated a pledge he made during the 2024 presidential campaign, which he ultimately won. At the time, analysts dismissed the proposal as unlikely without congressional approval, noting that the president does not have the authority to impose such a cap unilaterally.
Earnings Spotlight: JPMorgan Chase & Co. (JPM)
JPMorgan Chase is set to release its Q4 2025 results on January 13, 2026.JPM stock has risen 35% over the past year, driven by strong performance despite macroeconomic uncertainty, with solid trading and investment banking revenues supporting gains. Wall Street expects Q4 EPS of $4.88, up 1.5% year-over-year, and revenue of $46.17 billion, reflecting an 8% increase from the prior year. JPMorgan recently became the new issuer of the Apple Card, replacing Goldman Sachs, and investors will look for management commentary on the impact of the Apple partnership as well as President Trump's proposal to cap credit card interest rates at 10%.
What's Ahead
Q4 earnings season kicks off this week. This is the primary focus for investors. Major financial institutions, including JPMorgan Chase, Goldman Sachs, and Citigroup, are scheduled to report their results.
Economic:
Monday (Jan. 12): no reports
Tuesday (Jan. 13): CPI, New Home Sales, Treasury Budget
Wednesday (Jan. 14): PPI, Current Account Balance, EIA Crude Oil, Existing Home Sales, MBA Mortgage Applications Index, New Home Sales, Retail Sales
Thursday (Jan. 15): Continuing Claims, EIA Natural Gas Inventories, Empire State Manufacturing, Export Price, Import Prices, Initial Claims, Net Long-Term TIC Flows, Philadelphia Fed Index
Tuesday (Jan. 13): Bank of New York Mellon Corp. (BK), Concentrix Corp. (CNXC), Delta Airlines Inc. (DAL), JPMorgan Chase & Co. (JPM), Phoenix Education Partners Inc. (PXED)
Wednesday (Jan. 14): Bank of America Corp. (BAC), Bitmine Immersion Technologies Inc. (BMNR), Citigroup Inc. (C), H. B. Fuller Company (FUL), Home BancShares Inc. (HOMB), Infosys Ltd. (INFY), Wells Fargo & Co. (WFC),
Thursday (Jan. 15): BlackRock Inc. (BLK), First Horizon Corp. (FHN), Goldman Sachs Group Inc. (GS), J.G. Hunt Transport Services Inc. (JBHT), Morgan Stanley (MS),
Friday (Jan. 16): M&T Bank Corp. (MTB), PNC Financial Services Group Inc. (PNC), State Street Corp. (STT), Regions Financial Corp. (RF), Wipro Ltd. (WIT)
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