S&P 500 and Dow Break Higher Despite Strong Recession Signal, Key US Event Risk Ahead

The S&P 500 managed to pull out a strong first-week-of-the-year performance on the back of a modest NFPs beat and ISM service sector activity reading that seems to amplify the recession threat. Is the hope of a modest relent from the Fed on rate hikes enough to offset an economic slump? The markets will mull this question over next week.