By Alex Eule | Friday, January 17

Back on Track. It was a good week for inflation. As a result, it was a good week for stocks. The S&P 500 rose another 1% today to finish the week up 2.9%. It's the best week for the large-cap index since the U.S. election week in November. The Dow Jones Industrial Average gained 335 points on the day, bringing its one-week gain to 3.7%. 

While there was no big news Friday, traders seemed to be digesting a week of positive developments across the economy and market. The consumer price index, excluding fuel and energy, cooled more than expected in December. That data helped to bring bond yields down from recent highs, a relief to investors who had been watching their relentless rise amid worries about both fiscal and monetary policy. 

Also, this week, U.S. banks kicked off earnings season in impressive fashion -- a reminder that corporate health is strong. The coming weeks could amplify that message as the rest of the market reports fourth-quarter results. 

The latest news -- and market reaction -- has some analysts predicting an imminent return to stock-market highs. 

"In recent days, Treasury yields have shown evidence of turning lower, market breadth has improved, along with the Financials sector having broken out," Mark Newton, head of technical strategy at FundStrat, wrote today. "The combination of these, along with sentiment having turned more pessimistic in recent weeks, is a good recipe for a coming move back to new all-time highs."

With markets closed on Monday for Martin Luther King Jr.'s birthday, investors will have a long weekend to consider the shift in sentiment. There will be plenty to react to when markets reopen on Tuesday, including an inaugural address from President-elect Donald Trump on Monday, and the ongoing saga of TikTok. The social media app could cease to exist in the U.S. by Sunday after the Supreme Court today upheld a law banning the service.

The wild card is that neither the current or next president seem interested in enforcing the ban. Both Joe Biden and Donald Trump, and much of Congress, now seem to be looking for an off-ramp for TikTok's fast approaching expiration. It's a remarkable shift given that last April there was near unanimity in Washington about banning the social media platform.

My colleague Angela Palumbo has more on TikTok's future here, including today's White House statement that the "actions to implement the law simply must fall to the next Administration, which takes office on Monday."

As for that next administration, Trump wrote on Truth Social today that "My decision on TikTok will be made in the not too distant future, but I must have time to review the situation."

Review and Preview will be off for the holiday on Monday, returning to your inbox on Tuesday night. 

Watch our TV show on Fox Business Saturdays and Sundays at 9:30 a.m. and 10:30 a.m. ET. This week, Pimco's Libby Cantrill on the Trump administration's agenda and what it means for markets and the economy.

DJIA: +0.78% to 43,487.83
S&P 500: +1.00% to 5,996.66
Nasdaq: +1.51% to 19,630.20

The Hot Stock: Intel +9.3%
The Biggest Loser: J.B. Hunt Transport Services -7.4%

Best Sector: Technology +1.6%
Worst Sector: Healthcare -0.7%