US Stock market outlook: S&P 500, Dow Jones, Nasdaq trade will be driven by these pivotal factors. Details here

U.S. Stock Market investors will focus on the outlook for U.S. corporate profits, with earnings overall expected to rise substantially this year including gains from a wider group of companies. About one-fifth of the S&P 500 is due to report quarterly results, including Apple, Microsoft, Meta Platforms and Tesla, four of the “Magnificent 7” megacap companies.

Coming off the third straight year of double-digit returns for the ​S&P 500, the benchmark index is up about 1 per cent to start 2026. The index’s valuation is also above ​22 times expected earnings for S&P 500 companies, well higher than its long-term average of 15.9, so “the earnings bar had better be met,” said Chris Galipeau, senior ‌market strategist at Franklin ‍Templeton.

In 2026, S&P 500 earnings are expected to climb more than 15 per cent. A critical theme this earnings season is whether companies are starting to reap benefits from AI-related investments. Doubts that massive spending on data centers and other infrastructure would yield returns weighed on tech and other AI-related stocks late in 2025, after that group had been a key driver for the bull market in U.S. stocks that is entering its fourth year, Reuters reported.

Meanwhile, President Donald Trump is mulling his decision on a nominee to replace Powell, whose term as chair ends in May. A decision could come soon. Investors will remain on guard for geopolitical wildcards or other policy proposals from the administration.

On Friday, S&P 500 rose 2.26 points, or less than 0.1 per cent, to 6,915.61. Dow Jones Industrial Average fell 285.30 points, or 0.6 per cent, to 49,098.71. Nasdaq composite rose 65.22 points, or 0.3 per cent, to 23,501.24. Russell 2000 index of smaller companies fell 49.60 points, or 1.8 per cent, to 2,669.16.

For the year, S&P 500 is up 70.11 points, or 1 per cent, Dow is up 1,035.42 points, or 2.2 per cent, Nasdaq is up 259.25 points, or 1.1 per cent, Russell 2000 is up 187.26 points, or 7.5 per cent.

FAQs

Q1. How many indexes are there in U.S. Stock Market?

A1. There are four top indexes in the U.S. Stock Market.

Q2. Which are top indexes of U.S. Stock Market?

A2. S&P 500, Dow Jones, Nasdaq, and Russell 2000 are the top indexes of the U.S. Stock Market.