U.S. stocks ended Friday mixed as the Nasdaq rose 0.28% while the Dow Jones fell 285 points, pressured by a nearly 4% drop in Goldman Sachs. The S&P 500 eked out a slight gain. Markets recovered midweek after President Trump scrapped planned tariffs on European imports, easing geopolitical tensions.

Attention now pivots to the fourth-quarter earnings season and the Federal Reserve policy meeting. The central bank is expected to hold rates steady after three cuts in late 2025. Roughly one-fifth of S&P 500 companies report this week, including Microsoft, Apple, and Tesla. Early results show 81% of firms beating profit expectations.

Analysts question if AI investments are finally delivering returns after late-2025 concerns. Evercore ISI notes tech sentiment is downbeat despite a historic bull market. Morgan Stanley expects stock-specific catalysts over index-level moves. Investors will watch if megacap tech results justify recent valuations and signal broader market direction for 2026.