Market Overview - Futures for the S&P 500 and Nasdaq showed slight increases as investors reacted to cautious comments from U.S. Federal Reserve Chair Jerome Powell and anticipated key economic data later in the week [1][3] - Powell's remarks highlighted concerns about asset prices being highly valued and the delicate balance the Fed must maintain between inflation risks and a softening labor market [2] Economic Indicators - Investors are focused on the upcoming core personal consumption expenditures data, which is the Fed's preferred inflation measure; a higher-than-expected reading could lead to a more cautious easing approach, while a lower reading might support further cuts [5] - Housing market data is also being monitored for insights into consumer demand and builder sentiment, particularly in light of high borrowing costs affecting affordability [5][6] Stock Performance - Lithium Americas' U.S.-listed shares experienced a significant surge of 67% following reports that the Trump administration was considering taking up to a 10% equity stake in the company [7] - Concerns about inflated stock valuations persist, with only 17% of S&P 500 stocks outperforming the index in the last three months, indicating a narrow breadth in the market rally [4]

Core Viewpoint - Aegon Asset Management's Jeff Grills expresses increased optimism regarding stock valuations for 2026, citing accelerating US growth and potential Federal Reserve rate cuts as supportive factors [1] Group 1 - US economic growth is expected to continue accelerating, which may positively impact stock valuations [1] - Potential Federal Reserve rate cuts are viewed as a strong support mechanism for the market [1]