December jobs numbers get data back on track during first full week of trading in 2026: What to watch

Market Performance - The Dow Jones Industrial Average led the major indexes with a gain of 319 points, or 0.66%, during the holiday-abbreviated week [2] - The S&P 500 increased by 0.2%, while the Nasdaq Composite finished just below the flatline, with several "Magnificent 7" stocks experiencing declines [2] Economic Data - The upcoming week will see the release of economic data following disruptions from a government shutdown, with a focus on labor market indicators [3] - The December jobs report is anticipated to show a slowdown in hiring, with nonfarm payrolls expected to grow by 55,000, down from 64,000 in November [4] - The unemployment rate, which reached 4.6% in November, is projected to decrease by 0.1% [4] Federal Reserve Outlook - Investors are closely monitoring jobs data for its potential impact on Federal Reserve rate cut expectations, with an 85% chance that rates will remain in the current range of 3.5%-3.75% [6] - There is anticipation regarding President Trump's nomination for a new Fed Chair to succeed Jay Powell, whose term ends in May [7] Earnings Reports - The earnings calendar for the upcoming week includes notable companies such as Constellation Brands, Albertsons, Jefferies Financial Group, and Applied Digital, while big banks are expected to kick off earnings season in about two weeks [8]