US stocks open in the green: S&P breaches 7,000, Nasdaq climbs 0.7%

• The S&P 500 reached an intraday high of 7,002.28, more than doubling from pandemic-era lows, driven by strong corporate earnings and AI investment
• ASML and Seagate Technology posted strong earnings, citing sustained demand for chipmaking tools and data storage driven by AI workloads; Nvidia shares rose after China approved ByteDance, Alibaba, and Tencent to purchase H200 AI chips
• The Federal Reserve is expected to hold rates steady at 3.5%-3.75%, with futures markets pricing in two quarter-point cuts by end of 2026

Market Summary: US Stocks Rise as S&P 500 Breaches 7,000 Milestone

Market Performance (January 28, 2026)

U.S. equities opened higher Wednesday, with the S&P 500 reaching 7,000 for the first time, touching an intraday high of 7,002.28—a 0.3% gain. The Nasdaq Composite climbed 0.7%, while the Dow Jones Industrial Average remained virtually flat, up just 24 points. The S&P 500 has more than doubled from pandemic-era lows, driven by strong corporate earnings, AI investment, and supportive monetary policy.

Key Earnings and Sector Performance

AI-driven earnings fueled Wednesday's gains. ASML, a major chipmaking equipment manufacturer, reported strong results citing sustained demand for advanced tools as AI investment expands globally. Seagate Technology shares surged on robust data storage demand driven by AI workloads, with CEO Dave Mosley highlighting the sector's momentum.

The semiconductor sector received additional support from news that Chinese authorities approved ByteDance, Alibaba, and Tencent to purchase Nvidia's H200 AI chips. Nvidia shares advanced on the development, easing concerns about access to the Chinese market amid ongoing export controls and regulatory restrictions.

Federal Reserve Decision Awaited

Market focus shifts to the Federal Reserve's first policy decision of 2026, with the central bank widely expected to hold its benchmark interest rate steady at 3.5%-3.75%. Investors will scrutinize the statement for guidance on future monetary policy direction. CME FedWatch Tool indicates traders are pricing in two quarter-point rate cuts by end of 2026, amid easing inflation, labor market stabilization, and political pressure from the White House for lower rates.

Market Implications

The S&P 500's 7,000 milestone underscores continued strength in technology and AI-related sectors, with the AI investment theme rippling across the semiconductor supply chain.