Markets edge higher ahead of Apple, Meta, Microsoft results and the Fed’s first policy call of the year
MARKET INSIDER – U.S. stock futures moved cautiously higher as global investors entered one of the most consequential weeks of the quarter, with Big Tech earnings and a Federal Reserve decision poised to reset expectations for markets worldwide. Futures linked to the S&P 500 rose modestly, while Nasdaq-linked contracts outperformed, signaling that technology giants remain the market’s primary growth engine despite rising macro and political risks.
The early gains reflect optimism that earnings momentum can withstand tighter financial conditions. Apple, Meta Platforms and Microsoft were all trading higher ahead of their results, reinforcing the market’s reliance on a small group of mega-cap companies to sustain index-level performance. At the same time, Dow futures lagged, dragged lower by a sharp sell-off in health insurers following proposed changes to U.S. Medicare Advantage reimbursement rates—an abrupt reminder that policy risk remains highly sector-specific.
This earnings week is dense by any standard. More than 90 companies from the S&P 500 are reporting, including three members of the so-called “Magnificent Seven”—Meta, Microsoft and Tesla—on Wednesday, followed by Apple on Thursday. So far, the season has been resilient: roughly 75% of companies have beaten expectations, according to FactSet. Yet strategists warn that the real test lies ahead. Adam Parker of Trivariate Research notes that while near-term results look solid, profit expectations for the second half of the year may be overly optimistic, making forward guidance just as important as headline earnings.
Beyond corporate results, geopolitics and monetary policy are shaping sentiment. President Donald Trump’s announcement of higher tariffs on South Korean autos, pharmaceuticals and lumber—from 15% to 25%—has reintroduced trade friction as a live risk for global supply chains. Meanwhile, investors are looking to the Federal Reserve, which is widely expected to hold rates steady this week. Markets will scrutinize Chair Jerome Powell’s language for signals on when rate cuts could begin, with futures pricing still implying two reductions by the end of 2026.
The takeaway for global investors is clear: equity markets are being pulled in multiple directions at once—strong earnings, fragile policy assumptions, and renewed geopolitical noise. If Big Tech delivers and the Fed stays predictably cautious, risk assets could extend their rally. But with valuations concentrated and expectations high, any disappointment this week may reverberate far beyond Wall Street, shaping capital flows and sentiment across global markets well into the year.
