S&P500: Tech Stocks Power US Stock Market Rally Ahead of Fed Decision

• Technology stocks led gains with Micron up 3.73%, Apple up 1.89%, and Microsoft up 1.10%, while the Health sector fell 1.00% due to pressure on health insurers from a Medicare payment proposal.
• Over 200 S&P 500 companies are scheduled to report earnings in the next two weeks, with megacap tech firms Meta, Microsoft, and Tesla reporting Wednesday after the close, and Apple on Thursday.
• The S&P 500 E-mini futures show bullish momentum above key support at 6,925.50-6,951.50, targeting a record high of 7,036.25, with major support at the 50-day moving average of 6,898.32.

Market Summary: S&P 500 Rally Driven by Tech Ahead of Fed Decision

Key Market Performance

U.S. stock indexes opened mixed on Tuesday, January 27, 2026. The Nasdaq Composite led gains, rising 0.80% to 23,789.404, while the S&P 500 gained 0.37% to 6,975.70. The Dow Jones Industrial Average declined 0.86% to 48,986.61.

Sector Performance

Technology (+0.80%) led sector gains, powered by Micron Technology (+3.73%), Apple (+1.89%), and Microsoft (+1.10%). Energy (+0.63%) and Utilities (+0.48%) also advanced, with Chevron jumping 1.07%. The Health sector (-1.00%) was the weakest performer, dragged down by health insurers amid Medicare payment concerns.

Critical Events Ahead

The Federal Reserve announces its policy decision Wednesday at 18:00 GMT. Policymakers are widely expected to maintain the benchmark rate at 3.5%-3.75%, with Fed funds futures suggesting two quarter-point cuts possible by year-end 2026. Chairman Jerome Powell's press conference will be closely monitored for guidance on future rate cuts.

Earnings Season Intensifies

Over 200 S&P 500 companies report earnings in the next two weeks, with more than 90 companies scheduled this week. Megacap tech earnings dominate Wednesday's after-hours session with Meta, Microsoft, and Tesla reporting, followed by Apple on Thursday.

Technical Outlook

The E-mini S&P 500 futures crossed above key support at 6,951.50-6,925.50, building bullish momentum. Major support sits at the 50-day moving average (6,898.32), with upside targets at 7,033.25 and the record high of 7,036.25.

Market analysts remain cautiously optimistic, though concerns persist about elevated second-half earnings estimates.