Big banks kick off fourth quarter earnings season, inflation data on deck: What to watch this week

Market Performance - US stocks ended the week higher, with tech stocks leading the gains, resulting in record closes for the Dow Jones Industrial Average and the S&P 500 [1] - The Dow led major indexes with a gain of over 2% for the week, while the Nasdaq Composite rose nearly 2% and the S&P 500 increased by approximately 1.6% [1] Oil Market - Oil prices increased throughout the week, influenced by the US military's capture of Venezuelan president Nicolás Maduro and the Trump administration's seizure of Venezuela's oil industry [2] - Brent crude oil futures rose more than 3.7% for the week, while West Texas Intermediate futures gained roughly 2.6% [2] Economic Indicators - Upcoming economic data on consumer prices, producer prices, and retail sales will be closely monitored, as traders anticipate the Federal Reserve's decisions regarding interest rates [3] - Current market expectations indicate a 95% probability that the Fed will maintain unchanged rates at the upcoming meeting [3] Earnings Reports - The earnings season is set to begin, with major banks such as JPMorgan Chase and BNY Mellon reporting results on Tuesday, followed by Bank of America, Wells Fargo, and Citigroup on Wednesday [3] - Other significant companies reporting include Goldman Sachs, Morgan Stanley, and Taiwan Semiconductor later in the week [4] Labor Market Insights - The December jobs report indicated that 2025 was the worst year for US job growth outside of a recession since 2003, with only 584,000 new jobs added [5] - This marked a significant decline from over 2 million jobs added in 2024, and it was the first time job gains fell below 1 million annually, excluding the years 2008, 2009, and 2020 [5] - Despite concerns, the market's reaction suggested that labor market conditions are cooling but not collapsing, according to economic research insights [6]