A packed calendar of U.S. economic data and high-profile corporate earnings could shape market direction in the days ahead. Investors will be watching the U.S. labour market closely, while results from major technology names such as Alphabet (NASDAQ:GOOG) and Amazon (NASDAQ:AMZN) are set to dominate headlines. Outside tech, Eli Lilly (NYSE:LLY) may offer fresh signals from the fast-growing obesity drug space.
1. U.S. employment data in focus
Attention turns to the U.S. jobs report due on Friday, one of the most influential releases for markets. Economists expect nonfarm payrolls to rise by around 67,000 in January, compared with 50,000 in December, while the unemployment rate is forecast to hold steady at 4.4%.
Labour market conditions remain central to expectations for Federal Reserve policy. The Fed left rates unchanged at 3.5%–3.75% in January, pointing to stabilising employment trends and inflation that remains above target but no longer accelerating.
If upcoming data reinforce the view that the labour market is holding firm, investors may further push out expectations for the next rate cut, currently seen around June. Adding uncertainty, President Donald Trump’s nomination of Kevin Warsh as his preferred next Fed chair has revived debate about the future direction of U.S. monetary policy.
2. Alphabet earnings under the spotlight
Among corporate releases, Alphabet’s results on Wednesday are likely to be a major focus, particularly its progress in artificial intelligence. Like other mega-cap peers, the Google owner has committed billions of dollars to AI-related infrastructure, including data centres and advanced chips.
Alphabet shares rallied roughly 29% in the final quarter of 2025, buoyed by positive reception to its Gemini AI model and a partnership with Apple to support Siri. Some analysts believe Alphabet has now moved into a leading position in the race to develop and monetise AI, overtaking rivals that had earlier advantages.
3. Amazon set to report
Amazon will follow with earnings after the market close on Thursday. While its shares rose a more modest 5.1% in the fourth quarter, sentiment around its AI positioning remains constructive.
A key driver has been a November agreement with OpenAI under which the AI company committed to a seven-year, $38 billion cloud services deal. The partnership has lifted confidence in Amazon Web Services, with expectations that the bulk of the planned computing capacity will be operational by the end of this year and could expand further in 2027.
4. Eli Lilly’s update on obesity drugs
Outside the technology sector, Eli Lilly’s quarterly results on Wednesday could provide further insight into the booming weight-loss drug market. The company briefly surpassed a $1 trillion market capitalisation last year, underlining investor enthusiasm for its metabolic drug franchise.
Its tirzepatide treatment, sold as Mounjaro for diabetes and Zepbound for obesity, overtook Merck’s Keytruda as the world’s top-selling drug in the third quarter. Lilly’s success has also put pressure on competitors, including Novo Nordisk, which has faced supply constraints and questions around relative efficacy.
5. Precious metals retreat
Gold and silver started the week on the back foot after a dramatic sell-off late last week. Spot gold fell nearly 10% on Friday and slipped a further 4.9% to about $4,626 per ounce early Monday, well below the $5,000 level reached only days earlier. Silver also remained under pressure, hovering near $79 an ounce.
Market watchers attribute the sharp pullback to a stronger U.S. dollar and widespread profit-taking following months of rapid gains, factors that could continue to influence sentiment in the near term.