S&P 500 briefly topped 7,000 on Wednesday before sliding to 6,975 after a Fed decision. According to, the Federal Reserve left its policy rate at 3.5 to 3.75 percent in a 10-2 vote.
Two governors, Chris Waller and Stephen Miran, dissented and favored a 25 basis point cut. The decision pressured major U.S. stock indexes.
The index has started 2026 with gains driven largely by tech stock strength. Microsoft, Tesla, and Meta Platforms will report quarterly results this week.
Investors and analysts will watch those earnings calls for updates on artificial intelligence spending. (Ed. note: AI spending updates can influence how far the S&P 500 advances.)
Analysts expect continued S&P 500 growth in 2026, citing strong earnings and AI adoption. Forecasts range from modest gains near 3.7 percent, reaching about 7,100, to estimates showing 16 to 18 percent upside toward roughly 8,000.
