critical developments across the U.S. political and economic landscapes. The executive branch faces significant turmoil, with Secretary of Defense Pete Hegseth at the center of a controversy involving allegations of war crimes. An order to "kill everybody" during a naval operation has triggered congressional investigations from both the House and Senate Armed Services Committees and drawn condemnation from former defense officials. This incident adds to a pattern of Hegseth acting with a degree of independence that has previously left President Trump "confused."

Simultaneously, the administration is confronting legal defeats over its appointment of U.S. Attorneys. Federal courts have disqualified both Alina Habba in New Jersey and Lindsey Halligan in Virginia, ruling their appointments unlawful under the Federal Vacancies Reform Act. These rulings have created what one legal expert calls a "procedural morass," highlighting a persistent refusal by the administration to operate under established legal norms. Further questions surround the administration following President Trump's second physical in six months, with a "preventative" MRI of his heart and abdomen drawing widespread skepticism from medical experts who state such a test is not standard procedure.

In the political arena, President Trump is aggressively pushing for congressional gerrymandering in Indiana, aiming to eliminate the state's two Democratic districts. While the plan has support in the MAGA-aligned State House, it faces significant resistance in the Republican-controlled State Senate. The early 2026 election landscape is also taking shape, featuring several special House elections and a pivotal Wisconsin Supreme Court race on April 7 that could expand the court's liberal majority and have major implications for the 2028 presidential election.

On the economic front, S&P 500 companies delivered an exceptionally strong third-quarter 2025 earnings season. The blended year-over-year earnings growth rate reached nearly 17%, more than double initial expectations. The Technology sector, buoyed by the artificial intelligence boom, continues to lead, while the Energy sector lags significantly. Despite robust corporate fundamentals, including soaring revenue beat rates and rising forward estimates, investors remain cautious due to concerns over stretched valuations and weak market breadth, disproportionately punishing companies that miss estimates. The bull case for the stock market in 2026 will likely depend less on continued AI-related euphoria and more on a broadening of profit growth across the wider market.