Traders work on the floor of the New York Stock Exchange (NYSE) on January 22, 2026 in New York City, USA.
Brendan McDiarmid | Reuters
of S&P500 Stocks rose on Monday as traders monitored political developments and prepared for a crucial week of important earnings reports and the latest Federal Reserve interest rate decisions.
The overall market index rose 0.6%. of Dow Jones Industrial Average It rose by 168 points (0.4%). of Nasdaq Composite Up 0.8% supported by an increase of about 3% apple 2% or more increase meta platform ahead of earnings reports later in the week.
President Donald Trump threatened over the weekend to impose 100% tariffs on goods entering the United States from Canada if Canada signs a trade deal with China. In response, Canadian Prime Minister Mark Carney said Ottawa has “no intention” of pursuing a free trade agreement with China.
“The situation remains very fluid,” said Vital Knowledge’s Adam Crisafulli. “While no one seems particularly concerned that Mr. Trump’s threat of 100% tariffs on Canada will materialize (especially since Canadian officials, including Mr. Carney, insist that the country is not negotiating a free trade agreement with China), sentiment is still being slowly undermined by the continued use of import taxes as a cudgel to pressure allies.”
Investors were focused on Washington as anger grew over the second fatal shooting of a U.S. citizen by a federal immigration officer in Minnesota this month, raising concerns about a possible U.S. government shutdown. Several Democratic senators said they would not approve the $1.2 trillion funding package if it included allocations for homeland security. But one person familiar with Senate Republican leadership said funding for DHS would not be eliminated.
Gold prices rose on Monday as investors sought safety amid heightened political and financial risks, pushing the price to a new all-time high above $5,100 an ounce.
“Despite a lot of geopolitical uncertainty and policy uncertainty, consumers still appear to be in good health and continue to spend money, and businesses appear to be doing well in terms of profitability and still investing their profits in AI and other productivity tools,” said Tom Heinlin, national investment strategist at U.S. Bank Asset Management Group.
More than 90 S&P 500 companies are scheduled to release their quarterly reports this week. Some of the names of the “Magnificent Seven” are mentioned in the document — Meta, tesla and microsoft is expected to be announced on Wednesday, while Apple is expected to report on Thursday. So far, earnings season has been strong, with 76% of companies reporting beating expectations, according to FactSet.
To be sure, some stocks, like Intel and Netflix, are still losing money this season even though their companies have outperformed expectations.
“We will begin to expand our distribution of information beyond the financial sector and the airline industry to get broader information about the economy. Our expectations are that we still think we will have a decent earnings season,” Heinlin added.
On the economic front, the Fed is scheduled to announce its first policy decision of the year on Wednesday. The central bank is widely expected to keep overnight rates unchanged, but traders are betting on a two-quarter percentage point cut by the end of 2026, according to the CME Fedwatch tool, as the market looks for clues about when officials will cut rates.
Wall Street is coming off a losing week as rising geopolitical tensions spook investors. Concerns eased over the weekend after President Trump announced that a “framework” for a deal on Greenland had been reached. Still, the S&P 500 index fell about 0.4% last week, the second straight week of declines.
