30. January 2024 by Analyst

S&P 500 Sets a New High Amid Fed Watchful Eye and Earnings Surge

As investors anticipated the earnings results of many major tech companies and the Fed’s interest rate decision, the S&P 500 hit a fresh all-time high on Monday.

The index increased by 0.81% to 4,929.53, above the previous high of 4,906.77, which was reached on January 26. Investors are factoring in large earnings growth expectations and are expecting rate decreases sooner than Federal Reserve officials anticipate. If stock values are sustainable, especially for mega-cap US technology companies, the next few days will be critical.

With 19% of the S&P 500 releasing their results this week, it is the busiest week of the earnings season. Several of the largest tech firms, including Amazon, Apple, Microsoft, Meta, and Alphabet– which have been leading the rally this year — will make their performance public. Investors will also be following the earnings releases from a few Dow members, including Merck and Boeing.

Furthermore, on Tuesday the Federal Open Market Committee will begin its two-day policy meeting. It is nearly a given among investors that the Fed won’t alter interest rates. The CME Group estimates that traders in the fed funds futures market placed a 97% probability on the Fed maintaining current rates at its next meeting. Given that authorities have been attentively observing the most recent economic data, Fed Chair Jerome Powell’s impending press conference is quite important.

Consumer spending has exceeded expectations, yet inflation has not increased as predicted.