To The Moon

U.S. stock markets retreated as the fourth-quarter earnings season got off to a shaky start, led by disappointing results from $JPMorgan Chase(JPM)$ , one of the nation’s largest banks. Even encouraging inflation data failed to lift sentiment, highlighting how sensitive markets remain to corporate earnings at elevated valuation levels. The Dow Jones Industrial Average fell 398 points (-0.8%), while the $S&P 500(.SPX)$ slipped 0.2% and the Nasdaq Composite edged down 0.1%. The Russell 2000, which had recently outperformed, also declined 0.1%, signaling broad-based caution. JPMorgan Earnings Set a Cautious Tone for Q4 JPMorgan kicked off Q4 earnings season, but the bank’s results underwhelmed investors.

U.S. stock markets kicked off the week on a positive note as investors shifted their focus away from political noise surrounding the Federal Reserve and toward the upcoming fourth-quarter earnings season, a potential catalyst that could extend the early 2026 market rally. The Dow Jones Industrial Average and the $S&P 500(.SPX)$ both climbed 0.2%, reaching fresh record highs, while the Nasdaq Composite added 0.3%, led by technology and artificial intelligence-related stocks. Markets Earnings Season Takes Center Stage Markets opened shakily following news of a criminal probe involving Fed Chair Jerome Powell, related to his Senate testimony on the renovation of the Fed’s Washington headquarters. However, sentiment quickly improved as investors l

Wall Street ended the week on a strong note, brushing aside underwhelming job growth and instead leaning into a more optimistic outlook for 2026. Markets rallied broadly, reinforcing the idea that investors increasingly view labor data as a lagging indicator, not a constraint on future growth. U.S. equities posted their best weekly performance since late November, with all major indexes moving higher: Dow Jones Industrial Average: +238 points (+0.5%) $S&P 500(.SPX)$ : +0.6% $NASDAQ(.IXIC)$ : +0.8% The gains came even as the November jobs report missed expectations. The economy added 50,000 nonfarm jobs, below the forecast of 55,000 and capping what has been the weakest year for job growth since 2003

1. The Federal Reserve Is Re‑Expanding Liquidity Since early December, the Federal Reserve has expanded its balance sheet by roughly $105 billion, marking the fastest increase since the regional banking turmoil of 2023. This move aims to ease pressure on bank reserves, which had been tightening significantly. St. Louis Federal Reserve Key points The Fed’s balance sheet had fallen by about 30% since 2022, draining liquidity from the system. Facing renewed stress, the Fed resumed injections to stabilize reserves. It is now purchasing around $40 billion in U.S. Treasuries per month, supporting financial markets. Historically, such liquidity waves tend to boost risk appetite and lift asset prices. Bottom line: the Fed has shifted from tightening to quietly re‑adding liquidity. 2. Private‑Secto

A Market Rotation Takes Hold Early trading in 2026 is sending a clear signal: leadership in the stock market is shifting. While mega-cap technology stocks, the so-called Magnificent 7, are losing momentum, small-cap stocks are off to a powerful start. $Roundhill Magnificent Seven ETF(MAGS)$ : −0.1% in 2026 Russell 2000 (small caps): +5% in 2026 This divergence highlights a notable change in investor preferences after years of large-cap dominance… Why Investors Are Rotating Into Small Caps Several forces are driving this renewed interest in smaller companies: 1. Economic Optimism small-cap stocks tend to benefit most from accelerating economic growth. Investors appear increasingly confident in the resilience of the U.S. economy. 2. Lower Interest R

Markets Pull Back After Policy Surprises U.S. equities had a difficult session as policy announcements from the White House rattled investor confidence, pushing major indexes to their largest losses of 2026 so far. Dow Jones Industrial Average: −466 points (−0.9%) $S&P 500(.SPX)$ : −0.3% Nasdaq Composite: +0.2% The Dow and S&P 500 both snapped three-day winning streaks, while the Nasdaq proved more resilient thanks to selective strength in technology. $NVIDIA(NVDA)$ $Palantir Technologies Inc.(PLTR)$ White House Policy Moves Take Center Stage WH Policy The market reaction was driven largely by unexpected policy signals from President Trump, which introduc

Markets Near Highs as 2026 Begins U.S. stocks enter the first full week of 2026 just off record highs, closing out the Santa Claus rally period with a steady, if unspectacular, performance. Dow Jones led last week, rising 0.66% $S&P 500(.SPX)$ gained 0.2% Nasdaq finished roughly flat, as weakness in some “Magnificent 7” stocks was offset by strength in semiconductors Investors are beginning to shift their focus from year-end momentum to what the 2026 landscape may hold, amid lighter holiday trading volumes. A Big Week for Jobs and the Fed Outlook After months of disrupted data caused by the government shutdown, economic releases are finally back on schedule, and the spotlight is firmly on the labor market. Key expectations: December nonfarm pa

A Quiet but Strong Finish to 2025 U.S. stocks wrapped up last week just shy of record highs as the Santa Claus rally continued to unfold. After five straight positive sessions, markets paused slightly on Friday, but the broader picture remained upbeat: $S&P 500(.SPX)$ : +2.3% for the week Nasdaq Composite: +2.5% Dow Jones: +1.6% With trading volumes light and volatility muted, Wall Street is entering another sleepy holiday week, but sentiment remains constructive as investors look ahead to the new year. Santa Claus Rally: Momentum Into Year-End Santa Claus The Santa Claus rally, typically covering the final five trading days of December and the first two of January, appears firmly in place. After a volatile year marked by tariff shocks and pol

Markets Extend Their Momentum U.S. stocks started the week on a positive note, building on last week’s strength and raising hopes of an early Santa Claus rally. Santa Rally Dow Jones: +0.5% $S&P 500(.SPX)$ : +0.6%, now just 0.3% below its Dec. 11 record high $NASDAQ(.IXIC)$ : +0.5% With major indexes hovering near all-time highs, investor confidence appears to be improving as the year winds down. Santa Rally Back in Focus The so-called Santa Claus rally, traditionally spanning the last five trading days of the year and the first two of the next (Dec. 24 to Jan. 5), is firmly back on investors’ radar. Market watchers suggest the trend favors further upside, potentially allowing stocks to close 2025 at

U.S. equity markets ended the week on a firmer note, extending a late-week rally that helped major indexes stabilize after recent volatility. While the gains were modest, the tone was constructive, with investors increasingly focused on cooling inflation, a supportive central bank backdrop, and the prospect of a broader market rally as 2025 draws to a close. The $S&P 500(.SPX)$ rose 0.9% on Friday, securing a small weekly gain of 0.1% and avoiding a second consecutive weekly decline for the first time since June. The Nasdaq Composite outperformed, climbing 1.3% on the day and 0.4% for the week, driven largely by renewed strength in technology stocks. $NVIDIA(NVDA)$