Major indexes recorded new highs last week while leadership diverged. Since the start of the year The Dow Jones and the Russell 2000 outperformed the S&P 500 and the Nasdaq 100. The pattern reflects where capital has flowed in 2026.

Smaller companies faced pressure from higher interest costs during tight policy. With policy shifting toward lower rates the Russell 2000's rally captures expectations that financing conditions will ease for debt sensitive firms. Upcoming corporate reports from the largest names in the index must support elevated valuations for the advance to be sustained.

The Dow's rise has been driven by industrial and longstanding American companies. Household names such as Boeing Caterpillar Chevron and 3M contributed to the strength while much of technology underperformed aside from memory-related stocks like Micron. The sector mix points to investor preference for industrial exposure amid a policy focus on domestic manufacturing.

Earnings will test these rallies as several industrials trade near multi year highs. Reported results will clarify whether recent gains reflect fundamental improvements or valuation expansion.

• Iran: Protests cooled over the weekend but concerns remain about possible U.S. military action and a retaliatory response that could target Gulf oil infrastructure. That dynamic could pressure oil markets though recent price moves have been muted.
• Greenland: The U.S. push for Greenland escalated with threats of tariffs on EU countries not supporting the proposed acquisition on February 1. Europe has responded with countermeasures. Greenland's location and mineral resources are cited as drivers of the dispute and the situation may remain a bilateral trade and geopolitical theme.

Key macro releases this week include reports on construction spending GDP inflation measures and consumer sentiment. These releases will provide fresh data on activity and price trends.

Selected corporate reports are scheduled across the week. Notable names reporting include Netflix 3M USB United Airlines Interactive Brokers Johnson & Johnson Prologis Procter & Gamble GE Aerospace Abbott and Freeport McMoran.

SPY reached a high of 697.30 before a pullback last week. That level serves as the principal resistance in focus. A move above that level would represent a blue sky breakout with no clear resistance beyond it.

Economic drivers and geopolitical developments sit on opposite sides of the trade for risk assets. Market participants will weigh incoming data and headlines as positioning evolves.

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