No matter how the returns look in 2025, the last trading week before 2026 has arrived. The market will enter a new starting point, hiding key signals that influence early-year sentiment. Don't take it lightly!

Due to the New Year's Day holiday, trading hours are shortened this week. U.S. stocks will trade as usual on New Year's Eve, and the bond market will close early at 2 PM on Wednesday. Reduced liquidity will amplify price fluctuations, making the market more sensitive to data and news.

Last week, technology stocks led the decline in the three major indices, with AI and large tech stocks under pressure due to capital expenditure concerns. In terms of economic data, the focus is on the Federal Reserve meeting minutes, initial jobless claims, and housing market data, which reflect inflation, employment, and interest rate trends.

Additionally, an often overlooked factor is that starting from New Year's Day 2026, 22 U.S. states will raise the minimum wage, which will have medium- to long-term impacts on consumption, business costs, and inflation.

In summary, although this week appears to have little data and light trading, it is actually full of signals and risks. Instead of chasing short-term gains, focus on risk management and asset allocation to prepare for the "rollercoaster market" of 2026. If you find this useful, please follow, bookmark, like, and comment!