Welcome back and Happy New Year. Markets are opening 2026 with a mix of optimism, caution, and renewed focus as investors, business owners, and entrepreneurs reset after the holidays and begin positioning for the year ahead.

Closing out the week U.S. markets saw a slow start to the week posting modest losses feeling the pressure of a slowing economy and overweight technology sector. The S&P 500, Nasdaq, and Dow were all able to grab onto some momentum later in the week with the help of some positive earnings reports, making gains to end the trading day on Thursday, however all three major indexes remain down about 1% for the week. Asian markets saw slight declines this week while European markets remained largely flat with slight gains seen ending the week. 

Heading into the week, there will be several economic data reports to keep watch on. We will see November's job report, retail sales from October, and consumer price index (CPI) data released throughout the week. Predictions show the data released to be sluggish, however this data will continue to guide Fed policy moving forward. Labor data should be at the top of the list to pay attention to. One of the bigger goals of the Fed's rate cut decision is to help bring strength back to the labor market, so these reports will help give clarity to whether or not we are in line with their targets. CPI data will also be important as it is a key inflation gauge for the Fed and any sign of upward inflation could halt possible future cuts. 

U.S. markets saw mixed results this week. With the decision of a rate cut by the Fed on Wednesday, both the Dow and S&P 500 were able to break through previous levels achieving new all time highs on Thursday. On the other hand the tech heavy Nasdaq saw a drop of 0.26% due to a poor quarterly revenue report from Oracle. European markets followed suit posting a modest .5% gain, while Asian markets saw a mix of results with some indexes rising while others had a slight drop.

This week, we will see the JOLTS (Job Openings and Labor Turnover Survey) job report, U.S. weekly job claims, and the long-awaited interest rate decision by the Federal Reserve. A weak jobs report could put fear into markets and bring a possible drag on consumption, while a positive report could bring economic momentum and a boost to market sentiment.

U.S. markets started December on a strong note.A big reason for the market optimism is growing confidence that the Federal Reserve may cut interest rates at next Wednesday’s meeting. Overseas markets got a boost as well, helped by strong demand for Japanese government bonds.

As we head into the first week of December, this week again brings another heavy list of U.S economic data being released as we approach into a historically strong month for markets. Slowing economic growth, concern over market valuations, and speculation around monetary policy will continue to produce some uncertainty on the strength for the future.

This week brought a mix of good market momentum, soft retail spending, volatile tech moves, and rising expectations for a Fed rate cut. Our Market Close newsletter explains what happened and why it matters for your financial decisions.

Welcome to the first edition of the WizFi Market Open newsletter, your straightforward, accessible snapshot of the financial markets, the global economy, and business trends to watch this week.