The performance of the US stock market has been quite good this week. The S&P 500 rose by 1.6%, and the Russell 2000, which focuses on small-cap stocks, surged by 4.6%. Interestingly, passive funds are also following the trend — a large S&P 500 ETF attracted $10 billion in just a few days, a speed that's quite rare among passive funds.

However, the key this week remains economic data and the Federal Reserve's stance. On Tuesday evening at 21:30, the US will release December CPI data (both annual and monthly rates), along with core CPI. These figures are very important because they directly influence the Fed's next move. Following that, on Wednesday, retail sales, PPI, current account, and other data will also be released. On Thursday, the Fed will also announce initial jobless claims and the New York/Fed Philadelphia manufacturing indices, making the information volume truly substantial.

What are the market's biggest concerns? Fed officials have indicated this week that they are unlikely to cut interest rates before the new chair takes office. Bank of America strategists also agree with this assessment. This means that even if economic data is disappointing, it will be difficult for interest rates to loosen in the short term.

Geopolitical factors are also worth paying attention to. The US Secretary of State plans to engage with Denmark and Greenland, and political unrest within Iran could also become a risk trigger, all of which will influence market sentiment.