US stocks close higher as traders await Federal Reserve decision and tech earnings

The Dow Jones Industrial Average rose 0.64% to 49,412.40, while the S&P 500 added 0.50% to 6,950.23 and the Nasdaq Composite gained 0.43% to 23,601.36. The Dow ended the session up 313.69 points, reversing the prior session’s losses.

Markets traded firmer after what was described as a soft week for major indices, as geopolitical tensions eased late in the week following President Donald Trump’s announcement of a framework for a deal over Greenland. Trade headlines also remained in focus after Trump threatened to impose a 100% tariff on Canadian imports if Canada strikes a trade deal with China. Canadian Prime Minister Mark Carney said he had no intention of pursuing a free trade deal with Beijing.

In Washington, the report cited growing outrage after federal immigration agents fatally shot a U.S. citizen in Minnesota for the second time this month. Several Democratic senators said they would not approve a $1.2 trillion funding package if it includes an allotment for Homeland Security, raising the risk of another federal government shutdown.

Investors are now looking to the Fed’s decision on 28 January 2026. The central bank is widely expected to leave its benchmark overnight rate unchanged, with traders watching for signals on the timing of future cuts. On the data front, U.S. durable goods orders rose 5.3% in November after a revised 2.1% decline in October, driven by a 14.7% rebound in transportation equipment and a 97.6% jump in civilian aircraft bookings. The Chicago Fed national activity index improved to -0.04 in November from -0.42 in October, while the Dallas Fed manufacturing business index rose to -1.2 in January and the outlook index returned to positive territory at 2.9. Apple, Meta Platforms and Microsoft are among the large-cap companies due to report earnings later this week.

As GNcrypto explained in an educational guide, the Federal Open Market Committee meets eight times a year and sets U.S. monetary policy through votes on interest rates and balance sheet actions. The explainer detailed how markets track the post meeting statement, press conference, minutes and dot plot for signals that can move the dollar and Treasury yields and drive volatility in crypto.