Nasdaq Index and S&P500: Tech Stocks Rally Today as Megacap Earnings Loom

• Communications Services led all sectors with a 1.77% gain, while Technology rose 1.01%, with Apple and Meta each climbing over 2%
• Of the 64 S&P 500 companies reporting earnings as of Friday, 79.7% beat analyst expectations, setting a positive tone for upcoming megacap reports
• The Fed is expected to hold rates unchanged on Wednesday, with investors focused on Chairman Powell's comments regarding the timing of the first 2026 rate cut

Market Summary: Tech Stocks Rally Ahead of Megacap Earnings

Key Market Performance

U.S. indices reached two-week highs on January 26, 2026, with the S&P 500 up 0.67% to 6,961.76, the Nasdaq Composite gaining 0.71% to 23,667.64, and the Dow advancing 0.67% to 49,428.82. Markets hit their highest levels since January 15 as investors positioned ahead of critical megacap earnings and the Federal Reserve's first policy decision of 2026.

Sector and Stock Movements

Communications Services led all sectors with a robust 1.77% gain, followed by Technology at 1.01%. Materials rose 0.77%, supported by gold surging to a record high above $5,100. Major gainers included Apple and Meta, both up over 2%, while Alphabet, Broadcom, and Microsoft climbed more than 1.5% each.

Notable losers included Intel, down 5% following Friday's 17% decline, and airlines affected by weather disruptions: United Airlines fell 1.2% and JetBlue dropped 2.8%. USA Rare Earth surged 11% on news of a $1.6 billion U.S. government investment package.

Key Events Ahead

Apple, Meta, Microsoft, and Tesla are scheduled to report earnings Wednesday, with investors scrutinizing whether the AI-driven rally translated into actual revenue growth. The Fed's rate decision is also due Wednesday, with markets expecting no change but focused on Chairman Powell's commentary regarding the timing of 2026's first rate cut.

Of 64 S&P 500 companies reporting through Friday, 79.7% beat analyst expectations, suggesting strong corporate performance.

Technical Outlook

The Nasdaq Composite recaptured its 50-day moving average at 23,273, approaching January 13's high of 23,813.30 and potentially targeting its all-time high of 24,019.99.