Last Friday, the US stock market closed, and a weak non-farm payroll report instead stabilized market sentiment. Data showed that December's new jobs were far below market expectations, but the unemployment rate fell back to 4.4%. This divergence signals to traders that the US labor market is entering a phase of "cold hiring and cold layoffs." In other words, companies are not in a rush to expand hiring, but they are also not eager to make large-scale layoffs, which is enough to dispel fears of a sharp economic recession.

Interestingly, this weak employment data did not reinforce investors' optimistic expectations for a rate cut by the Federal Reserve this year. According to CME futures data, the market's probability of the Fed cutting interest rates at the next meeting dropped from 11% the previous trading day to 5%, a near cliffhanger. But in the long term, the market still maintains a view — that the Fed will at least move twice this year, and there is still room for rate cuts.

On the news front, the three major Wall Street indices performed well on Friday, all rising across the board. Entering the first full trading week of 2026, the US stock market continued this upward trend, with the Nasdaq, S&P 500, and Dow Jones all delivering solid results.