The first week of 2026 showed strong trading performance with broad gains across asset classes. The S&P 500 rose 1.6%, while small-cap stocks performed even more impressively, with the Russell 2000 surging 4.6%. In just a few days, the VOO fund attracted $10 billion in capital inflows. Based on Wall Street's trading activity, risk appetite is clearly warming up.

The real challenge lies ahead next week. From Tuesday to Thursday, key economic data including CPI, PPI, and retail sales will be released in concentrated fashion, coinciding with frequent appearances by Federal Reserve officials. Market expectations suggest a high probability that current interest rates will remain unchanged. The window for rate cuts will likely only open after the new Federal Reserve chair takes office. Additionally, geopolitical tensions remain active—the Middle East situation continues to be deadlocked. These sudden developments combined with uncertainty around economic data will inevitably expand market volatility.

From a trading perspective, next week represents a dual test. With data-intensive releases, mixed policy signals, and unresolved geopolitical risks, volatility will certainly be substantial. It's advisable to strictly manage position risk and avoid getting caught up in short-term gains.