U.S. stocks opened 2026 on a positive note, but face a major test as earnings season kicks off and fresh inflation data arrives against a backdrop of rising geopolitical uncertainty.

The S&P 500 is up nearly 2% ‍already in January, on the heels of the benchmark index in 2025 closing out its third straight year of double-digit percentage gains. Stocks jumped on Friday after mixed jobs data that saw traders maintain expectations for more interest β€Œrate cuts this year.

The market's recent strength has defied an increasingly volatile geopolitical landscape. ‍After a U.S.

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