The Week Ahead: Trump Davos Speech and PCE Inflation Data Release
Markets face a compressed schedule this week with closures for Martin Luther King Jr. Day. President Trump's Wednesday address at Davos will likely spotlight housing reforms, including proposed bans on institutional homebuyers and directives to Fannie Mae and Freddie Mac to purchase mortgage bonds—a MOVE aimed at reducing borrowing costs.
Delayed PCE inflation data for October and November finally arrives Thursday, offering fresh insights into price trends after the government shutdown. Meanwhile, Netflix earnings land Tuesday amid Warner Bros. Discovery acquisition talks, with Intel following Thursday.
Small-cap stocks continue their rally as the Russell 2000 hits record highs, signaling an ongoing rotation away from Big Tech dominance. The market's appetite for risk appears undimmed despite macroeconomic headwinds.