Key Points
- U.S. stocks closed higher on Monday as investors prepared for a busy week.
- The Federal Reserve is expected to hold interest rates steady at its meeting this week.
- Big Tech earnings from Tesla, Microsoft, Meta, and Apple will be a major focus.
- Geopolitical tensions are on the rise, with Trump threatening new tariffs on Canada.
U.S. stocks kicked off the week on a positive note, with all three major indexes closing higher on Monday. Investors are gearing up for a crucial week, with the Federal Reserve’s first policy meeting of the year and a flood of earnings reports from some of the biggest names in tech.
The Dow Jones Industrial Average led the gains among the primary benchmarks, rising 0.64% to finish at 49,412.41. Meanwhile, the S&P 500 climbed 0.50% to reach 6,950.22, continuing its march toward the psychologically significant 7,000 level. The tech-heavy Nasdaq 100 also posted a solid performance, increasing 0.42% to end the session at 25,713.21.
The main event of the week will be the Fed’s two-day meeting, which concludes on Wednesday. The central bank is widely expected to keep interest rates on hold after cutting them three times in a row at the end of last year. Investors will be closely watching for any hints about the Fed’s future plans, especially as the spat between President Trump and Fed Chair Jerome Powell continues to raise concerns about the central bank’s independence.
On the earnings front, it’s a huge week for Big Tech. Tesla, Microsoft, Meta, and Apple are all scheduled to report their latest quarterly results. These reports will be a key test for the market, which has been riding a wave of AI euphoria. Investors will be looking for signs of strong consumer demand and progress on artificial intelligence initiatives.
The geopolitical landscape also remains tense. Over the weekend, President Trump threatened a 100% tariff on Canada if it signs a trade deal with China, a move that could reignite trade war fears. At the same time, tensions between the U.S. and Iran are on the rise.
This uncertainty is sending investors flocking to safe-haven assets. Gold prices surged to a new record high on Monday, breaking above $5,100 an ounce for the first time ever.
For now, the bulls are still in control, but with so much on the calendar, it’s shaping up to be a very volatile week.
