US STOCKS CLOSE HIGHER AHEAD OF BUSY EARNINGS REPORTS, FED DECISION

NEW YORK, Jan 27 (Bernama-Xinhua) -- United States (US) stocks concluded Monday's session on a positive note, as investors positioned themselves for a pivotal week featuring high-profile corporate earnings and the Federal Reserve's first interest rate announcement of the year, reported Xinhua.

The Dow Jones Industrial Average rose 0.64 per cent to 49,412.4. The S&P 500 added 0.5 per cent to 6,950.23. The Nasdaq Composite Index increased 0.43 per cent to 23,601.36.

Sector performance was largely constructive, with eight of the 11 primary S&P 500 sectors finishing in green.

Communication services and technology led the advance, rising 1.32 per cent and 0.84 per cent, respectively. Conversely, the consumer discretionary and consumer staples sectors lagged, declining 0.71 per cent and 0.05 per cent.

Political tensions in Washington weighed on market sentiment as lawmakers confronted a Jan. 30 funding deadline.

Uncertainty grew following the fatal shooting of a US citizen, identified as 37-year-old ICU nurse Alex Pretti, by federal agents in Minneapolis.

The incident has prompted Senate Democrats to threaten opposition to a US$1.2 trillion spending package unless funding for the Department of Homeland Security is separated.

Despite domestic volatility and rising geopolitical risks, JPMorgan analysts noted that emerging markets remain attractive for investors due to structural growth opportunities.

"With respect to the recent spike in geopolitical uncertainty and accompanying tariff threats, if these were to return to the limelight and there is a renewed escalation, EM could appear relatively shielded, with US and European equities more at risk, in absolute terms, and relatively, in our view," the firm's Mislav Matejka said on Monday.

In the corporate news, more than 90 S&P 500 companies are scheduled to report quarterly results this week.

Market attention is focused on "Magnificent Seven" members Meta, Tesla, and Microsoft, due Wednesday, and Apple, set for Thursday.

Despite a broader rally, Intel shares fell 5.72 per cent, extending a sharp decline from Friday when the chipmaker issued a weak outlook, citing internal supply constraints.

Tesla shares dipped 3.09 per cent ahead of its Wednesday report, while Apple rose nearly three per cent.

On the economic front, the Federal Open Market Committee will conclude its two-day meeting on Wednesday.

While the central bank is widely expected to maintain the federal funds rate at its current range of 3.5 per cent to 3.75 per cent, market participants are seeking clarity on the timeline for future cuts.

According to the CME FedWatch Tool, traders are currently pricing in two quarter-point reductions by the end of 2026.  

--BERNAMA-XINHUA