NEW YORK, January 11, 2026, 12:07 PM (EST) — Market closed
- Dow ended Friday at a new high of 49,504.07, gaining 0.48%
- Traders turn their attention to Tuesday’s U.S. inflation figures and the initial major bank earnings
- The U.S. Supreme Court tariff case could trigger near-term market swings
The Dow Jones Industrial Average ended Friday at a record 49,504.07, climbing 237.96 points. U.S. hiring slowed, but not enough to derail bets on Federal Reserve rate cuts this year. “Payrolls were a little bit light relative to consensus, but still fairly strong numbers,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder. (Reuters)
As the cash market rests over the weekend, investors face two key hurdles come Monday: inflation figures and the kickoff of fourth-quarter earnings, anchored by the major banks.
The Dow kicked off 2026 with a more cyclical vibe. Materials and other lagging sectors chipped in, while chipmakers provided steady support. Traders are still debating what follows after the initial surge in the artificial intelligence trade.
Valuations are drawing fresh attention ahead of earnings season. The S&P 500 currently trades around 22 times expected earnings, surpassing its five-year average of 19, according to LSEG data. Zachary Hill, head of portfolio management at Horizon Investments, noted that investors are “getting granular” on the AI theme. (Reuters)
Friday’s trigger was the jobs report. Nonfarm payrolls — the monthly tally of U.S. jobs outside farming — increased by 50,000 in December. The unemployment rate slipped to 4.4%, and wage growth clocked in at 3.8% year-over-year, according to the Labor Department. “Hiring is still stuck in stall speed,” said Olu Sonola, head of U.S. economic research at Fitch Ratings. (Reuters)
Rates delivered a mixed signal. After the data, short-dated yields—often linked to policy bets—rose, while longer-dated yields slipped. This hints investors expect a sluggish economy but a patient Fed.
Bank earnings kick off the week, with JPMorgan Chase set to report Tuesday. Citigroup, Bank of America, and Goldman Sachs follow later, according to Reuters. Jack Janasiewicz, portfolio manager at Natixis Investment Managers, noted, “The banks are going to be telling you something that is going to be pretty important because they’re on the front lines.” (Reuters)
Tuesday delivers December’s Consumer Price Index, a key inflation measure. Core CPI, excluding food and energy, is forecast to climb 2.7% year-over-year, slightly higher than November’s figure, Bloomberg reported. (Bloomberg)
Dow investors feel the impact sharply since the index is heavily weighted toward financials, industrials, and traditional blue chips. A few strong inflation numbers can swiftly pressure rate-sensitive sectors, and bank forecasts have the power to reshape the consumer outlook overnight.
Trade policy remains a hot topic. The U.S. Supreme Court is set to deliver rulings on January 14, leaving the fate of President Donald Trump’s wide-ranging global tariffs unresolved, Reuters reported. (Reuters)
That said, the setup works both ways. Should CPI come in hotter than anticipated or bank earnings reveal growing credit stress, Treasury yields might surge, pulling the Dow down from its peaks. A bigger jolt over the tariff dispute could also ripple through stocks, hitting companies vulnerable to import costs especially hard.
Wall Street reopens Monday. Tuesday brings CPI data and JPMorgan’s earnings. After that, the Supreme Court’s next rulings come on January 14, with the Fed’s meeting scheduled for January 27-28.
