Stocks face their first real test of 2026 with Friday’s pivotal jobs report and possible tariff ruling

As of Thursday, the S&P 500 was trading at more than 22 times the expected earnings of its member companies over the next 12 months, FactSet data showed. This shows the index is expensive relative to history, and almost as richly valued as it was at the peak of the market in early January 2022. That marked the beginning of a nine-month-long bear market.On Friday, investors will receive the U.S. Labor Department’s first jobs report of 2026, which covers the month of December. There are potential risks for in ...