S&P 500 Closes Higher as Apple and Meta Rally Ahead of Key Earnings and Fed Decision -

U.S. stock markets finished higher on Monday, with the S&P 500 advancing as investors positioned for a crucial week featuring major corporate earnings, political developments, and the latest Federal Reserve interest rate decision.

The broad-based S&P 500 rose 0.50% to close at 6,950.23, while the Dow Jones Industrial Average gained 313.69 points, or 0.64%, to 49,412.40. The Nasdaq Composite climbed 0.43% to 23,601.36, supported by strength in large-cap technology stocks.

Big Tech Leads Gains Ahead of Earnings

Technology stocks provided a key boost to the market, with investors anticipating earnings from several of the market’s most influential companies.

Apple shares rose about 3%
Meta Platforms gained roughly 2%
Microsoft advanced around 1%

All three companies are scheduled to report earnings later this week, with markets closely watching results from the so-called “Magnificent Seven.” Tesla and Microsoft are due to report on Wednesday, followed by Apple on Thursday.

Political Risks Remain in Focus

Markets also monitored political developments in Washington and abroad. Over the weekend, President Donald Trump threatened to impose a 100% tariff on Canadian imports if Canada were to pursue a trade deal with China.

Canadian Prime Minister Mark Carney responded by stating that Canada has “no intention” of negotiating a free trade agreement with Beijing, easing immediate market concerns.

However, analysts warned that continued use of tariff threats could gradually weigh on sentiment.

“The situation remains very fluid,” said Adam Crisafulli of Vital Knowledge, noting that while markets are not pricing in immediate action, the persistent use of trade pressure is slowly eroding confidence.

Shutdown Concerns Add to Uncertainty

Investor attention also turned to Capitol Hill amid rising tensions over federal immigration enforcement and funding negotiations. Some Democratic senators have indicated they may oppose a $1.2 trillion government funding package if it includes funding for the Department of Homeland Security.

While Senate Republican leadership signaled that DHS funding would remain intact, concerns about a potential U.S. government shutdown added to broader uncertainty.

Gold Hits New Record as Investors Seek Safety

Safe-haven assets outperformed as political and fiscal risks mounted. Gold prices surged to a new all-time high, briefly topping $5,100 per ounce, as investors sought protection from volatility.

Despite the uncertainty, analysts noted that underlying economic conditions remain resilient.

“Consumers still look like they’re in okay shape and continue to spend, and businesses remain profitable and continue investing in AI and productivity tools,” said Tom Hainlin, National Investment Strategist at U.S. Bank Asset Management Group.

Earnings Season Gathers Momentum

This week marks one of the busiest periods of the earnings season, with more than 90 S&P 500 companies set to report. So far, results have been encouraging, with 76% of reporting companies beating expectations, according to FactSet.

Still, some stocks — including Intel and Netflix — have declined despite positive earnings, highlighting a more selective market environment.

“We’re starting to get a broader read on the economy beyond just a few sectors,” Hainlin added, expressing confidence that earnings should remain solid overall.

Fed Decision Looms

On the macroeconomic front, the Federal Reserve is expected to announce its first policy decision of the year on Wednesday. While the central bank is widely expected to keep interest rates unchanged, investors will closely watch for signals on the timing of future cuts.

Markets are currently pricing in two quarter-point rate cuts by the end of 2026, according to the CME FedWatch Tool.

Market Outlook

Wall Street is coming off its second consecutive weekly decline, as geopolitical tensions unsettled investors earlier this month. Sentiment improved toward the end of last week after Trump announced a framework for negotiations related to Greenland.

As earnings reports and the Fed decision unfold, markets are likely to remain volatile, with investors balancing strong corporate performance against political and policy uncertainty.