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

U.S. Stock Exchange investors will focus on the outlook for U.S. corporate earnings, with earnings overall expected to rise significantly this year, including earnings for a broader group of companies. About a fifth of the S&P 500 will report quarterly results, including four of the “Great 7” megacap companies: Apple, Microsoft, Meta Platforms and Tesla.

The benchmark S&P 500 index, which achieved double-digit returns for the third consecutive year, rose nearly 1 percent to start 2026. The index’s valuation is also above 22 times expected earnings for S&P 500 companies, well above its long-term average of 15.9, so “the earnings bar better be respected,” said Chris Galipeau, senior market strategist at Franklin. Templeton.

In 2026, S&P 500 earnings are expected to rise more than 15 percent. A critical issue this earnings season is whether companies are starting to benefit from AI-related investments. Doubts that big spending on data centers and other infrastructure will yield returns weighed on technology and other AI-related stocks through late 2025 after that group became a major driver for the bull market in U.S. stocks, which is now in its fourth year, Reuters reported.

Meanwhile, President Donald Trump is pondering the decision to nominate Powell to replace her, whose term ends in May. A decision may come soon. Investors will remain alert to any geopolitical wildcards or other policy proposals from the administration.

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

On a yearly basis, S&P 500 increased by 70.11 points (1 percent), Dow increased by 1,035.42 points (2.2 percent), Nasdaq increased by 259.25 points (1.1 percent), and Russell 2000 increased by 187.26 points (7.5 percent).

FAQ

Q1. How many indices are there in the US Stock Exchange?

A1. There are four top indices in the US Stock Market.

Q2. What are the best indices of the US Stock Market?

A2. S&P 500, Dow Jones, Nasdaq and Russell 2000 are the most important indices of the US Stock Market.