Markets in Positive Territory Ahead of Big Tech Earnings Week

Monday, January 26, 2026, closed on a positive note in U.S. financial markets, signaling a strong start to one of the busiest weeks of the month. The Dow Jones Industrial Average showed moderate gains, the S&P 500 ended higher, and the Nasdaq was slightly lower, but overall market sentiment remains positive. Trading volumes on the NYSE were above average, indicating renewed interest from institutional investors, while activity on Nasdaq was slightly below average, reflecting investor caution ahead of the earnings reports from major technology companies.

Big Tech at the Start of the Week
This week is set to be significant for the technology sector, with earnings reports from Tesla, Microsoft, Meta, and Apple on the horizon. Key areas of focus include revenue growth, the impact of artificial intelligence on business models, and company spending on AI development. After a weak 2025, Meta and Microsoft stocks are showing signs of recovery, reflecting not only renewed interest in their products but also the companies’ adaptation to new economic realities and investor expectations. Apple and Tesla reports are particularly anticipated for insights on demand for new devices and automotive technologies, including electric vehicles and AI assistants.

Investors are closely monitoring management commentary on prospects for 2026, plans for new technology rollouts, and potential macroeconomic impacts on business performance. The outcomes of these reports are expected to shape market sentiment for the next quarter and influence valuations within the tech sector.

Federal Reserve and Interest Rates
The Federal Open Market Committee (FOMC) meeting is scheduled for Wednesday. Analysts and investors expect rates to remain within the 3.5–3.75% range, with no changes. Attention is focused on statements from Chair Jerome Powell and a possible successor as Fed chair. Any hints regarding monetary policy changes, potential easing or tightening of credit conditions, could trigger volatility, especially among tech and consumer stocks.

Investors are also watching for remarks on inflation trends, labor market conditions, and economic growth forecasts. Even if the rates remain stable, the tone of the Fed’s commentary—whether dovish or hawkish—could significantly affect both equity and bond market dynamics.

Global Events and Geopolitics
The international context remains complex but encouraging for the global economy. India and the European Union have signed a historic free trade agreement covering roughly 25% of global GDP and a third of international trade. For markets, this is a positive signal — expanded trade flows and reduced barriers create new opportunities for exports, investments, and company growth in both regions.

At the same time, geopolitical risks persist. Donald Trump has threatened to impose higher tariffs of up to 25% on South Korea and a 100% tariff on Canada if it signs a new trade deal with China. Such threats could cause localized volatility in commodity markets and stocks of companies heavily reliant on international trade.

Commodities and Precious Metals
The precious metals market is hitting record levels. Gold trades at $5,079 per ounce, silver at $107.9, and platinum at $2,656. Price growth is supported by geopolitical tensions, a weakening U.S. dollar, and continued investor demand for safe-haven assets amid global uncertainty.

Oil prices are slightly declining due to weak demand in certain regions, partially offset by production disruptions caused by severe winter storms in the United States. Volatility in the energy sector remains high, and analysts recommend monitoring the impact of weather conditions and political decisions on global supply.

Conclusion
Despite ongoing geopolitical risks, tariff threats, and sector-specific instability, markets are showing confident performance. Key drivers this week include Big Tech earnings, the Fed meeting, and fresh economic and trade data. Investors and analysts will be closely monitoring these developments to assess growth potential and short- to medium-term volatility. Overall, the week promises to be eventful and potentially decisive for market sentiment at the start of 2026.