The S&P 500 and Nasdaq were poised for gains as Wall Street remained optimistic despite the looming threat of another government shutdown. Futures for the S&P 500 rose by 0.3%, setting the stage for the benchmark index to potentially surpass the 7,000-point milestone for the first time. Meanwhile, Nasdaq 100 contracts increased by 0.7%. In contrast, the Dow Jones Industrial Average experienced a decline, slipping 150 points, or 0.3%. Overall, the three major indexes began the week on a positive note.
The financial community is particularly focused on this week, as the Federal Open Market Committee’s two-day policy meeting kicks off on Tuesday. Major companies like Boeing and UnitedHealth are scheduled to release their earnings, with key reports from several members of the renowned “Magnificent Seven” tech group set for later in the week.
Chris Brigati, chief investment officer at SWBC, emphasized the significance of this week in shaping the market’s near-term trajectory as 2026 approaches. He noted that historical trends suggest a strong January can set the tone for the rest of the year, influenced largely by investor sentiment.
As Wall Street eyes potential legislative gridlock, Senate Democrats indicated they would withhold support for a federal funding package in response to President Trump’s immigration policies. Trump announced plans to send Tom Homan, his immigration czar, to Minneapolis, a move interpreted by some as an attempt to ease rising tensions.
The uncertainty surrounding government funding appeared to impact haven assets, which had seen a robust rally in recent weeks. Gold futures dipped by 0.1%, settling at $5,076 per ounce, while silver futures fell sharply by 3.6% to $111 per ounce.
In bond markets, the yield on the benchmark 10-year Treasury note increased by 1 basis point to 4.22%. The dollar also gained 0.2% against a weighted basket of currencies, momentarily reversing a recent decline attributed to the “sell America” sentiment prevalent in the markets.
