What is the Federal Reserve expected to do with interest rates on Wednesday?

The Federal Reserve is widely expected to keep its benchmark interest rate steady at a target range of 3.5% to 3.75%.

Which major tech companies are releasing earnings reports this week?

Microsoft, Meta Platforms, and Tesla are set to post their quarterly financial results on Wednesday, with Apple releasing its results on Thursday.

What is the current outlook for the U.S. economy according to experts?

The current U.S. economic outlook remains positive, with ongoing growth and a stabilized labor market, though inflation is still above the Fed's target.

Home / Business and Economy / S&P 500 Hits Record High Amid Fed Watch

S&P 500 Hits Record High Amid Fed Watch

28 Jan

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Summary

S&P 500 closed at an all-time high on Tuesday.
Federal Reserve's interest rate decision is expected Wednesday.
Major tech companies including Microsoft and Tesla report earnings.

The S&P 500 concluded Tuesday's trading session at a record high, buoyed by a 0.4% advance. Concurrently, futures for the index showed minimal movement overnight, alongside modest gains in Nasdaq futures and a slight dip in Dow Jones futures.

All eyes are on the Federal Reserve as it prepares to announce its initial interest rate decision for the year on Wednesday. While the central bank is widely anticipated to maintain its current rate, market participants will scrutinize any indications regarding future monetary policy adjustments. Projections suggest a possibility of two quarter-percentage-point rate cuts by the conclusion of 2026.

Analysts suggest the current U.S. economic climate supports sustained growth, with a stabilized labor market. Inflation remains above the Fed's target, diminishing the case for immediate rate reductions. Potential policy shifts are more likely to be considered in March or June, though these might be deferred to the latter half of 2026.