(Part 1 of 5) Economic Review for week starting 26Jan2026 - Fed's interest rate decision and PPI

KYHBKO
01-25

Economic Preview: Key Data Releases for January 2026 (week of 26Jan2026)

This week features several key economic indicators and events that will offer insights into the economy's health. On Monday, durable goods orders for November will be released. This data serves as a key measure of consumption and investment in the economy. Alongside this, the Conference Board (CB) Consumer Confidence Index for January will be published. The previous index reading was 89.1, which pointed to declining consumer confidence.

Additionally, President Trump is scheduled to deliver a speech on Wednesday, January 28. This event has the potential to introduce volatility to the markets, depending on the topics addressed and the market’s reaction.

Crude oil inventory data will also be updated in the coming week. This information is closely watched as an indicator of trends among oil producers and is particularly relevant given ongoing changes in demand and consumption patterns.

Perhaps the most anticipated economic decision this week is the Federal Reserve’s interest rate announcement. According to various market surveys, the forecast is for the interest rate to remain unchanged at 3.75%. The outcome of this decision will be closely monitored by investors and analysts alike.

Other notable releases include initial jobless claims data, with the previous figure standing at 200,000. This metric provides a timely indication of labour market conditions.

The Producer Price Index (PPI) for December, released on a month-over-month basis, is another important data point this week. The PPI reflects inflation faced by producers, and can act as a leading indicator of inflationary pressures that may eventually be passed on to consumers.

Additionally, the Chicago Purchasing Managers’ Index (PMI) for January will be reported. The previous reading was 42.7, indicating a contraction in manufacturing activity.

Finally, China’s manufacturing PMI for January will also be released. The prior figure was 50.1, suggesting a slight expansion in the country’s manufacturing sector. Is this a reflection of China’s domestic manufacturing or a reflection of the global demand?

@TigerStars

$Vanguard S&P 500 ETF(VOO)$

$Cboe Volatility Index(VIX)$

S&P, Dow Break Records: Would January Effect Last?
S&P 500 and Dow Jones both closed at record highs. As January goes, so goes the year. When January closes positive, the S&P 500 is higher 89% of the time, with an average gain of 17% and an average maximum drawdown of 10.5%. When January is negative, average returns fall to -1.8%, with only a 50% hit rate and deeper market drawdowns. How do you see 2026 unfolding? Will U.S. equities continue to deliver double-digit gains, or lag behind other global markets? Will AI leadership rotate toward memory stocks or SaaS companies?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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