As we enter the first full trading week of 2026, various asset classes are rising together, and risk appetite on Wall Street is clearly warming up. Investors' appetite for risk assets is evident— the S&P 500 index rose 1.6% for the week, while the Russell 2000 index, representing small-cap stocks, surged 4.6%. Passive funds also benefited, with Vanguard S&P 500 ETF attracting $10 billion in inflows in just a few days. Such speed is rare for passive products and highlights market enthusiasm.

However, the current focus remains on economic data and Federal Reserve movements. Next week's economic schedule is quite packed: on Tuesday evening, December CPI data (including seasonally adjusted and unadjusted versions) and core CPI annual rate will be released; on Wednesday, retail sales, PPI data, and Q3 current account figures will be announced; on Thursday, attention will be on initial jobless claims, the New York/Fed Philadelphia manufacturing indices, and import price index.

The most critical factor is the stance of the Federal Reserve. Strategists from the Global Research Department of U.S. banks explicitly state that they are now certain that the Fed will not cut interest rates again before Powell's successor is officially in office. The dense schedule of Fed officials speaking next week will further confirm this expectation. This suggests that the probability of interest rates remaining high in the short term is quite high, and how this will influence the direction of crypto assets is worth close attention.