U.S. Equities Advance in First Full Week of 2026 Despite Political Shockwaves

New York — Major U.S. stock indexes finished the first complete trading week of 2026 in positive territory, overcoming weaker job creation, geopolitical tension in South America and a series of unexpected policy declarations from President Donald Trump.

Market Performance

The S&P 500 closed at an all-time high on Friday, capping a 1.6% weekly gain. The Nasdaq Composite rose nearly 2% over the same period but remained shy of its own record. Investors set aside several sources of volatility, among them the U.S. capture of Venezuelan leader Nicolás Maduro and multiple economic pronouncements issued by the president on his Truth Social account.

Labor Data and Rate Expectations

Friday’s advance followed a December labor report that showed nonfarm payrolls increasing by 50,000, well below the 73,000 forecast by economists. The weaker reading strengthened expectations for additional Federal Reserve interest-rate cuts later this year, a development broadly supportive of equity valuations.

Political Headlines

Market participants also weighed a series of mid-week social media posts from President Trump. On Wednesday, the president proposed barring large investors from purchasing residential property, prohibiting defense contractors from issuing dividends or conducting share buybacks, and expanding the U.S. defense budget. A day later, he ordered government-backed mortgage bond purchases aimed at reducing borrowing costs for homebuyers. Despite the breadth of the proposals, equity indexes continued to climb.

Club Portfolio Activity

Within that backdrop, analyst Jim Cramer cautioned subscribers against making outsized moves during what he described as a period typically marked by “strange patterns.” Nonetheless, the portfolio executed two modest trades:

• BlackRock: A portion of the position was sold on Monday after the asset-manager’s shares rallied sharply to open the year, rebounding from a lackluster 2025. BlackRock, Wells Fargo and Goldman Sachs are scheduled to release quarterly results in the coming week.
• Solstice Advanced Materials: The fund exited its small, 0.15% stake on Thursday. The position was inherited when Honeywell completed the spin-off of the specialty chemicals unit on Oct. 30. Managers opted to return Solstice to the “bullpen,” citing valuation concerns.

Individual Stock Moves

Nvidia: The chipmaker fell more than 2% for the week despite a series of constructive developments. Chief Executive Jensen Huang outlined expanding corporate partnerships during the Consumer Electronics Show on Monday night, while Chief Financial Officer Colette Kress suggested that management’s combined 2025-26 revenue target of $500 billion could rise. Bloomberg later reported that Chinese regulators will allow imports of Nvidia’s H200 artificial-intelligence processors. Portfolio managers advised current holders to refrain from adding to positions but said the pullback could present an entry point for new investors.

Imagem: Internet

CrowdStrike: Shares of the cybersecurity firm dropped over 3% on Thursday after announcing a $740 million agreement to acquire identity-management startup SGNL, a deal executives said would strengthen the company’s presence in the fast-growing identity-security segment. Despite the one-day decline, CrowdStrike ended the week up about 3.8% as technology shares broadly rotated.

Geopolitical Development

The rally also unfolded as investors digested news that U.S. forces had apprehended Venezuelan President Nicolás Maduro over the weekend. Although the surprise operation introduced fresh geopolitical risk, it did not derail risk appetite on Wall Street.

Looking Ahead

Traders now turn their attention to the upcoming wave of fourth-quarter bank earnings, fresh economic indicators and any follow-up action from the Federal Reserve. Against that backdrop, fund managers reiterated a cautious stance, emphasizing selective adjustments rather than sweeping portfolio changes as the new year gathers momentum.

Crédito da imagem: CNBC