Markets consolidated last week as big bank earnings failed to impress investors, while economic data continued to show resilience, calling into question the Federal Reserve’s rate-cutting path for 2026. The upcoming holiday-shortened week, however, could bring increased volatility as economic data ramps up and earnings season moves into full swing.

Wednesday and Thursday will be the most important days on the economic calendar. On Wednesday, President Trump is scheduled to speak at the World Economic Forum, where he is expected to outline several new economic policy initiatives that could impact both the U.S. and global economies.

Markets will also digest key housing data, with Pending Home Sales and Construction Spending reports serving as a capstone for the month. Investors will be looking for confirmation that housing activity is showing near-term improvement as mortgage rates continue to trend lower.

On Thursday, attention shifts to a heavy macro lineup, including Q3 GDP, Personal Income and Spending, and the latest PCE inflation data, critical inputs for expectations around Fed policy.

From an earnings perspective, several high-profile companies report next week, including Netflix (NFLX), Intel (INTC), and Procter & Gamble (PG). Results from Netflix and P&G should provide important insight into consumer behavior, while Intel’s report will offer an update on U.S. semiconductor fabrication buildouts and production trends.

In addition, several major energy companies are scheduled to report and may offer commentary on their outlook for Venezuela and how evolving policy dynamics could impact operations and investment decisions.

Finally, note that the 10-year Treasury yield (/10Y) broke above the key 4.2% level on Friday, marking its highest reading since September 2025—a development that could reintroduce pressure across risk assets if yields continue to climb.

Holiday-shortened weeks are often volatile, and with the S&P 500 continuing its attempt to reach the psychologically important 7,000 level, investors should remain cautious. The latter half of January into February is also seasonally a weaker period for equities.

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