The Dow Jones Industrial Average and the S&P 500 ended Friday at new records, after Wall Street shoved money into the stock market in the first week of the year.
The Dow rose 238 points, or 0.5%, while the the S&P rose 0.7%. The Nasdaq Composite gained 0.8%, but remained far from its all-time high levels.
The Russell 2000, an index that tracks stocks of companies with smaller market capitalizations, rose 0.8% on Friday. The index outpaced the other major indexes this week, suggesting that investors moved away from popular tech stocks and invested elsewhere in the market.
Bank earnings will kick off the fourth-quarter reporting season in earnest next week.
Citi anticipates S&P 500 companies to post an earnings beat of about 4% for the fourth quarter, which is typical. Investors, though, will be focused on more guidance for 2026.
Revising 2026 earnings higher due to better “labor productivity, industrial production, housing starts, and stable inflation dynamics, are crucial for maintaining a bullish stance on US equities,” Citi wrote in a Friday note.