Stocks enter 2026 at stretched valuations, leaving little room for disappointment.
December jobs growth missed expectations, raising economic slowdown concerns.
The S&P 500 trades well above its long-term average.
Wall Street expects strong earnings growth—but risks remain.
The Fed may hesitate to cut rates amid stable inflation.
AI growth continues, but leadership is shifting.
Cyclical sectors attract fresh investor interest.
High valuations mean higher volatility risks.
Jobs, earnings, Fed policy, and AI trends matter most.