Wall Street Wavers as Earnings Season and Inflation Data Loom

· Politics · United States

US stocks wavered on the slowest trading day of 2026 as a selloff in chipmakers weighed on sentiment ahead of the earnings season and inflation data that will be key in shaping the Federal Reserve's outlook. Blockbuster profits are expected for the S&P 500, but analysts warn that strong results may not be enough to keep fueling the rally. Investors are focused on whether earnings momentum can sustain a market that has climbed on hopes of rate cuts and AI-driven growth.

Why it matters：The market's next move hinges on whether earnings and inflation data justify a rally built on rate-cut and AI optimism.

Key points

  • US stocks wavered on the slowest trading day of 2026
  • A chipmaker selloff weighed on sentiment ahead of earnings season
  • Analysts warn strong S&P 500 profits may not sustain the rally

Sources (original reporting)

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