What to Expect in Markets This Week: Investors Watching Venezuela Developments, Awaiting Jobs Report, Other Economic Data, Earnings Reports

Introduction to the Week’s Economic Events

The first full week of trading in 2026 has begun, and investors are faced with a fresh dose of geopolitical uncertainty. Over the weekend, the U.S. launched a military strike on Venezuela, extracting President Nicolás Maduro to face criminal charges in the U.S. President Donald Trump announced that the U.S. would "run" Venezuela until an orderly transition is possible and that U.S. oil companies would rebuild the oil infrastructure of the South American country.

Geopolitical Uncertainty and Its Impact on the Oil Market

The involvement of the U.S. in Venezuela’s oil industry is expected to be closely watched by investors, particularly its impact on the oil market. The shape of U.S. involvement in the oil-rich nation is still unclear, and investors will be looking for more details from the Trump administration. The oil market could be subject to volatility as developments unfold.

Upcoming Economic Data and Events

This week, investors will also be watching for employment data that could impact interest rates. Market watchers will get a look at data that was delayed by the government shutdown, including reports on housing starts, factory orders, and the U.S. trade deficit. The Bureau of Labor Statistics will release the December jobs report on Friday, which will provide insight into the labor market.

Jobs Data and Its Impact on Interest Rates

Federal Reserve officials have indicated that a weakening labor market could lead to more interest rate cuts this year. The release of December meeting minutes showed that Fed officials are divided on the path of interest rates and would be closely monitoring upcoming data on the labor market. Reports this week on job openings, private sector hiring, and weekly jobless claims will help paint a picture of the current labor market landscape.

Technology Firms and Their Role in the Market

While there’s a limited schedule for earnings reports this week, investors will still have the opportunity to monitor the AI trade with Applied Digital’s report on Wednesday. Shares of the data center service provider have surged as spending on AI infrastructure remains robust. IT-services provider TD Synnex’s earnings will also provide a look at tech spending.

Food and Beverage Manufacturers Report Earnings

Constellation Brands reports earnings on Wednesday, and the company has warned that slowing beer sales and tariff pressures are creating headwinds. Cannabis distributor and beer maker Tilray Brands is due to release its results on Thursday, and company officials could discuss the impact of President Donald Trump’s move to reclassify cannabis as a less dangerous substance. Reports from grocer Albertsons Companies, chicken egg producer Cal-Maine Foods, and Atkins brand owner Simply Good Foods will give investors insight into consumer spending on food products.

This Week’s Calendar

Here is a breakdown of the key events happening this week:

• Monday, Jan. 5: ISM manufacturing (December)
• Tuesday, Jan. 6: S&P services PMI (December), Federal Reserve Official Speaking: Richmond Fed President Tom Barkin
• Wednesday, Jan. 7: Federal Reserve Official Speaking: Fed Governor Michelle Bowman, ADP employment (December), Job openings and labor turnover (November), manufacturers’ shipments, inventories, and orders (October), ISM services PMI (December), Key Earnings: Constellation Brands, Jefferies Financial, Albertson Companies, Applied Digital, MSC Industrial, Cal-Maine Foods
• Thursday, Jan. 8: Weekly unemployment insurance claims (Week ending Jan. 3), Consumer credit (November), Productivity and costs (Q3), U.S. trade deficit (October), Key Earnings: RPM International, TD Synnex, Acuity, Commercial Metals Company, WD-40, Simply Good Foods, Tilray Brands
• Friday, Jan. 9: U.S. employment report (December), Housing starts (September, October), Consumer sentiment – preliminary (January)

One More Thing

As 2026 begins, many are wondering if the year will offer some mortgage rate relief for homebuyers. With the current economic climate and geopolitical events, it’s essential to stay informed about the potential impact on mortgage rates.

Conclusion

The first full week of trading in 2026 is filled with economic events and data releases that will shape the market. From geopolitical uncertainty to employment data and earnings reports, investors will be closely watching the developments. As the year unfolds, it’s crucial to stay informed about the potential impact of these events on various industries and the economy as a whole.