Key Points
- U.S. stocks were mixed on Tuesday as investors awaited a Fed decision and a wave of corporate earnings.
- The Federal Reserve is widely expected to leave interest rates unchanged.
- It’s a big week for tech earnings, with Meta, Tesla, Microsoft, and Apple all set to report.
- Gold prices continued to rise, while oil prices gained on weather-related supply disruptions.
U.S. stocks were mixed on Tuesday as investors found themselves in a holding pattern, waiting for a key decision from the Federal Reserve and a flood of earnings reports from some of the biggest names in tech.
As of 10:06 AM (ET), the tech-heavy Nasdaq 100 is leading the benchmarks with a 0.62% gain, fueled by investor anticipation for “Magnificent Seven” earnings—including Microsoft, Meta, and Tesla—which are scheduled to report tomorrow. This momentum has helped the S&P 500 edge up 0.28% as it nears the psychological 7,000-point milestone.
Conversely, the Dow 30 has slumped nearly 1%, primarily weighed down by a massive sell-off in UnitedHealth Group (UNH). The health insurance giant’s stock plummeted after the Trump administration proposed a surprisingly low 0.09% increase for 2027 Medicare Advantage payment rates, far below the mid-single-digit hikes the industry had anticipated.
The market seemed to shrug off the news that President Trump is raising tariffs on South Korean imports, with most of the focus on the Fed’s two-day policy meeting, which concludes on Wednesday.
The central bank is widely expected to leave interest rates unchanged, but investors will be closely watching for any clues about the timing of future rate cuts. The identity of the next Fed chair is also a hot topic, as Jerome Powell’s term is set to end in May.
So far, the earnings season has been strong, with about three out of four companies beating expectations. On Tuesday, Boeing swung to a fourth-quarter profit, and General Motors reported a higher core profit. American Airlines also forecast a strong 2026, buoyed by a recovery in corporate travel.
In the commodities market, gold prices edged higher, continuing their record-breaking run, while oil prices gained on supply disruptions from the severe winter weather that has swept across the U.S.
