This week’s edition of Wall Street Week highlights the first complete week of financial trading in 2026, during which major indices soared to unprecedented record highs. The remarkable performance in the markets was driven by a strong labor market report, groundbreaking advancements in AI technology showcased at CES, and significant geopolitical changes affecting global oil supplies.

Investors engaged in a noteworthy sector rotation, shifting their focus from the high-growth technology sector to more cyclical areas such as energy, defense, and housing, spurred by new government policy proposals.

At the same time, the commodity markets experienced a substantial rebalancing, which led to increased volatility in precious metals, while industrial metals remained relatively stable.

The week wrapped up with a narrative of a soft landi ...