U.S. stocks traded slightly higher on Monday as investors prepared for a pivotal week that includes a Federal Reserve policy meeting and a heavy slate of corporate earnings, all against a backdrop of elevated geopolitical tensions.
By 09:34 ET (14:34 GMT), the Dow Jones Industrial Average was up about 40 points, or 0.1%. The S&P 500 gained 0.3%, while the NASDAQ Composite added 0.1%.
Fed meeting in focus
The centerpiece of the week is the Fed’s two-day policy meeting, which concludes on Wednesday. Markets broadly expect policymakers to keep interest rates unchanged after three straight cuts at prior meetings.
Analysts at ABN Amro said the central bank appears poised to enter an extended pause. They now expect rates to remain on hold until June, citing stronger economic growth, a stabilizing unemployment rate, and a more hawkish tone from Fed officials since December.
Investor attention is also on tensions between U.S. President Donald Trump and Fed Chair Jerome Powell, which have raised concerns about political pressure on the central bank. Earlier this month, Powell disclosed that the Justice Department had opened a criminal investigation into him, which he described as politically motivated.
Powell is set to step down as Fed chair in May, and Trump is widely expected to announce his replacement in the coming weeks.
Big tech earnings ahead
Corporate earnings will also play a major role in shaping market sentiment. Roughly 20% of the S&P 500 is scheduled to report results this week, including four members of the so-called “Magnificent Seven.”
Tesla, Microsoft, and Meta Platforms are due to report on Wednesday, followed by Apple on Thursday. Investors will be looking for evidence of resilient consumer demand, progress in artificial intelligence initiatives, and clarity on margins amid rising costs and geopolitical uncertainty.
Elsewhere, airline stocks came under pressure. Shares of American Airlines, Delta Air Lines, and United Airlines fell on concerns over flight delays and cancellations caused by a major winter storm across large parts of the United States.
In contrast, Baker Hughes rose after reporting an 11% increase in fourth-quarter adjusted profit, driven by strong demand for its gas technology equipment and services.
Gold hits record highs as tensions rise
Geopolitical risks remained elevated after Trump warned over the weekend that he could impose a 100% tariff on Canada if Ottawa were to pursue a trade deal with China. Canadian Prime Minister Mark Carney responded by saying Canada has no plans to seek a free trade agreement with Beijing and would honor its existing commitments with the U.S. and Mexico.
Amid the uncertainty, gold prices surged to fresh record highs above $5,100 an ounce, extending last week’s strong rally as investors sought safety in the precious metal.
Oil prices were more subdued, consolidating after recent gains. Brent crude rose 0.4% to $64.82 a barrel, while West Texas Intermediate gained 0.4% to $60.84 a barrel. Both benchmarks posted weekly gains of about 2.7% last week, closing at their highest levels since mid-January.
Oil markets remain sensitive to renewed tensions between the U.S. and Iran, after Trump said an “armada” of U.S. naval forces was heading toward the region. Winter storms in the U.S. have also disrupted energy production, pushing up spot power prices and weighing on crude and natural gas output.
