Daily Market Update: Tech Earnings and Fed Meeting Dominate Focus
The Federal Reserve convenes for its first 2026 policy meeting on Wednesday, with markets anticipating unchanged rates following three consecutive cuts in late 2025. Inflation metrics remain stubbornly elevated, forcing policymakers to maintain restraint despite political pressure for accommodation.
Tech earnings take center stage as Microsoft, Meta, and Tesla report Wednesday, followed by Apple on Thursday. Morgan Stanley analysts caution that Meta's AI investments require demonstrable revenue linkages to justify its premium valuation. Industrial bellwethers Boeing and Caterpillar will provide crucial insights into US manufacturing resilience.
Financial markets enter a holding pattern ahead of these macro catalysts. The S&P 500 futures show muted activity as traders await Jerome Powell's post-meeting commentary for forward guidance clues. Energy giants Exxon and Chevron round out the week's earnings calendar alongside payment processors Visa and Mastercard.