Markets Quiet Ahead of Fed Decision as Tech Earnings Season Nears – US Market Wrap
US stocks wrapped up a volatile week on a subdued note, with investors taking stock of gains from the prior two sessions ahead of the Federal Reserve’s policy decision and the start of the major technology earnings season.
Although the S&P 500 recorded its first consecutive weekly decline since June, the index recovered from earlier losses on Friday, supported by resilient consumer sentiment and advances across most megacap stocks. Nvidia rose 1.5% after China signaled that technology companies could begin preparing orders for its H200 artificial-intelligence chips. Intel tumbled 17% following a cautious outlook. Small-cap stocks lagged the broader market after outperforming it for 14 straight sessions.
Bond trading was relatively calm. With inflation pressures lingering but signs of stabilization emerging in the labor market, the Fed is broadly expected to leave interest rates unchanged at its meeting on Wednesday. Economists surveyed anticipate rate cuts only later in the year, likely in June and September. The dollar posted its worst weekly performance since May.
Global markets were unsettled earlier in the week after President Donald Trump threatened tariffs on some European countries over Greenland, before dialing back the rhetoric after NATO officials signaled progress. The European Union agreed to extend the suspension of retaliatory tariffs on €93 billion ($109 billion) of US goods for another six months.
The S&P 500 hovered near 6,915, while a megacap index climbed about 1%. The Russell 2000 slid 1.8%. The yield on 10-year Treasuries edged down one basis point to 4.23%. The dollar fell 0.7%, while the yen surged the most since August on speculation Japanese authorities may be preparing to intervene to curb its decline.
Commodities advanced broadly. Oil prices rose on concerns over potential US military action involving Iran and the impact of a major winter storm. Gold hit record highs, silver pushed above $100 an ounce, and copper climbed past $13,000 a ton.
