The S&P 500 Index is up 0.03%, marking a new all-time high, while the Nasdaq 100 Index has reached a three-month high, buoyed by strong earnings from semiconductor and AI-related companies. ASML Holding NV reported record Q4 bookings of €13.2 billion, substantially exceeding the expected €6.85 billion, contributing to market optimism. In total, 81% of the 83 S&P 500 companies that have reported earnings thus far have beaten expectations, with overall earnings growth projected at 8.4% for Q4.
Meanwhile, the Federal Open Market Committee (FOMC) is expected to maintain the fed funds target range at 3.50% to 3.75% during today’s meeting. Political uncertainties, including potential tariffs on imports from Canada and risks of a government shutdown, are casting a shadow over market sentiment. Additionally, the dollar index is recovering after a sharp decline, and WTI crude oil has reached a four-month high in response to geopolitical tensions involving Iran.
Mortgage applications in the U.S. fell by 8.5% for the week ending January 23, with the average 30-year fixed mortgage rate rising to 6.24%. The focus this week will be on comments from Fed Chair Powell post-FOMC meeting and key economic indicators such as unemployment claims and the trade deficit.
