Wall Street investors are gearing up for a crucial week packed with significant economic data and the start of the corporate earnings season. The focus will be squarely on key inflation figures for December and a backlog of delayed reports, all of which could set the tone for market direction in the near term.
Economic Data Deluge Post-Shutdown
The week's economic calendar is unusually heavy due to a record-breaking 43-day US government shutdown that ended in November 2025. This disruption has created a backlog of vital reports that are now being released. Investors will be scrutinizing the Consumer Price Index (CPI) for December, which provides the latest snapshot of inflation. Alongside this, several delayed reports will finally see the light of day, including the November Producer Price Index (PPI), November retail sales figures, and October new home sales data.
The absence of consistent inflation readings in recent months, coupled with signals of a stabilizing labour market, suggests that Federal Reserve policymakers are likely to maintain the current monetary policy stance for the immediate future. This week's data will be critical in either reinforcing or challenging that view.
Banking Giants Kick Off Earnings Season
The fourth-quarter earnings season officially begins, with the financial sector taking centre stage. Market participants will parse the results from America's banking behemoths for clues about the health of the consumer and corporate America. The earnings calendar features a who's who of Wall Street:
- JPMorgan Chase & Co.
- Bank of America
- Wells Fargo
- Citigroup
- Goldman Sachs
- Morgan Stanley
Other major companies reporting include Delta Air Lines, Taiwan Semiconductor, BlackRock, and PNC Financial.
Detailed Economic Calendar
The flow of data is scheduled as follows:
Tuesday, January 13: Reports on the NFIB optimism index for December, the Consumer Price Index (CPI) for December, new home sales for October, and the US budget deficit for December will be released.
Wednesday, January 14: A major day featuring the delayed reports on retail sales for November and the Producer Price Index (PPI) for November. Also scheduled are delayed US business inventories for October, existing home sales for December, and the Federal Reserve’s Beige Book.
Thursday, January 15: Reports on initial jobless claims for the week ended January 10, the Empire State manufacturing survey for January, and the Philadelphia Fed’s manufacturing survey for January.
Friday, January 16: The week concludes with data on industrial production and capacity utilization for December.
Market Context and Previous Week's Performance
US stock indices rallied to record highs on Friday, driven by a weaker-than-expected jobs report that fueled hopes the Federal Reserve might delay further interest rate hikes. The S&P 500 rose 44.82 points, or 0.6%, to close at 6,966.28. The Dow Jones Industrial Average gained 237.96 points (0.5%) to finish at 49,504.07, while the Nasdaq Composite advanced 191.33 points (0.8%) to 23,671.35. The Russell 2000 index of smaller companies also climbed 20.32 points, or 0.8%, to 2,624.22.
For the entire week, the gains were substantial. The S&P 500 added 107.81 points (1.6%), the Dow jumped 1,121.68 points (2.3%), and the Nasdaq increased by 435.72 points (1.9%). In the bond market, Treasury yields showed a mixed picture. The yield on the benchmark 10-year Treasury note eased to 4.16% from 4.19%, while the 2-year Treasury yield rose to 3.53% from 3.49%.
This sets the stage for a volatile and data-dependent week on Wall Street, where every report will be dissected for its implications on inflation, consumer strength, and the future path of interest rates.
