Yields later retreated after National Economic Council Director Kevin Hassett offered dovish comments on the labor market. Hassett said the United States should expect “slightly lower” job creation because of slower population growth and rising productivity, remarks that traders interpreted as a signal the Federal Reserve might face less upward pressure on wages. The pullback in yields removed a headwind for equities and allowed chipmakers and other AI-linked companies to rebound.
Materials stocks also contributed to the session’s turnaround. Spot gold prices climbed roughly 2 percent, and silver surged more than 6 percent, moves that lifted shares of mining firms and diversified commodity producers. The jump in precious metals prices followed renewed safe-haven demand and technical buying after bullion held key support levels last week.
The Dow’s record close underscored continued investor appetite for blue-chip companies with stable earnings profiles. Although the advance was modest, it was enough to edge the index past its previous peak set in late January, reflecting confidence in the outlook for large, diversified industrial and consumer names.
Market attention now shifts to a heavy calendar of economic reports and corporate earnings slated for the remainder of the week. On Tuesday, economists expect the fourth-quarter Employment Cost Index to rise 0.8 percent. December retail sales are projected to increase 0.4 percent both overall and excluding automobiles, offering an updated look at consumer demand entering 2026.
Wednesday brings the government’s estimate of January nonfarm payrolls. Consensus forecasts call for a gain of 69,000 jobs, while the unemployment rate is expected to hold steady at 4.4 percent. Average hourly earnings are seen rising 0.3 percent on the month and 3.7 percent from a year earlier. Those figures will be scrutinized for signs of wage pressure that could influence Federal Reserve policy.
The labor market theme continues on Thursday, when initial jobless claims are projected to fall by 7,000 to 224,000. Housing data are also on deck, with January existing home sales expected to decline 3.5 percent to an annualized pace of 4.20 million. The week concludes on Friday with the release of the January Consumer Price Index. Economists anticipate a 2.5 percent year-over-year increase in both headline and core CPI readings.
Corporate reporting season remains a central driver of market sentiment. More than half of the S&P 500 companies have now posted fourth-quarter results, and 79 percent of the 297 firms that have reported so far have exceeded Wall Street profit expectations. Analysts at Bloomberg Intelligence forecast overall S&P 500 earnings growth of 8.4 percent for the quarter, which would mark the tenth consecutive period of year-over-year expansion. Excluding the so-called “Magnificent Seven” megacap technology stocks, earnings are projected to rise 4.6 percent.
Investors will track upcoming data closely as they assess whether cooling job gains, steady wage growth, and resilient corporate profits can sustain the market’s upward momentum. Additional information on the employment outlook is available from the U.S. Bureau of Labor Statistics, which will release several key reports over the next four days.
Crédito da imagem: source original
