On January 28, 2026, the S&P 500 briefly crossed the 7,000 mark for the first time, highlighting a milestone for US equities. The move came as investors awaited the Federal Reserve’s first policy decision of the year and a wave of earnings reports from major technology companies.
Federal Reserve Holds Rates Steady
The Federal Reserve kept interest rates unchanged in a 10-2 decision, maintaining the target range at 3.5% to 3.75%. Dissenting votes came from Governors Chris Waller and Stephen Miran, who favored a 25 basis point cut. The decision was widely anticipated following three rate cuts at the end of 2025. Market participants are now focused on Chair Jerome Powell’s press conference for signals about the timing of future rate adjustments.
Market Performance and Economic Backdrop
After an initial rally, stocks pulled back slightly, with the S&P 500 dipping below 7,000 later in the session. The Nasdaq Composite edged higher, while the Dow Jones Industrial Average hovered near the flatline. The dollar, which had recently hit a four-year low, stabilized after comments from Treasury Secretary Scott Bessent reaffirmed a strong dollar policy.
Investors are also monitoring the impact of President Trump’s tariffs and recent political developments, including a DOJ investigation into Fed Chair Jerome Powell and speculation about his successor.
Big Tech Earnings in Focus
Attention has turned to earnings reports from leading technology companies, including Microsoft, Meta Platforms, and Tesla, all scheduled to release results after the market close. The performance of these “Magnificent Seven” stocks is expected to influence broader market sentiment, particularly as AI-driven demand continues to shape the tech sector.
Chipmakers like ASML, Intel, and Nvidia have also been in the spotlight, with strong demand for AI infrastructure boosting their outlooks. ASML reported record orders, signaling confidence in the sustainability of AI-related growth.
Corporate Developments
Amazon announced plans to lay off 16,000 employees as part of ongoing efforts to streamline operations. The company emphasized that the cuts are aimed at reducing bureaucracy and are not part of a larger workforce reduction. Other notable corporate news included AT&T’s profit forecast and Elevance Health’s outlook for 2026.
Looking Ahead
With the Fed’s rate decision behind them, investors will be watching upcoming earnings and economic data for further direction. The market’s reaction to Big Tech results and any signals from the Fed about future policy moves will be key drivers in the days ahead.