Earnings season was in full swing this week
Markets were closed on Monday in observance of Martin Luther King Jr. Day, but the response to U.S. President Donald Trump's inauguration still made for an eventful week. The Trump administration's softer-than-expected tariff plans put investors at ease, with the S&P 500 Index (SPX) breaking records after President Trump revealed an artificial intelligence (AI) infrastructure initiative worth about $500 billion, and called for lower interest rates during the World Economic Forum. The Nasdaq Composite (IXIC) and Dow Jones Industrial Average (DJI) rallied amid a slew of upbeat earnings, the latter stringing together four consecutive wins. The major indexes were struggling for direction on Friday, but remained on track for weekly gains.
Stocks React to Trump Takeover
President Trump did not mention crypto in his inaugural speech, which pressured the shares of MicroStrategy (MSTR) and Coinbase Global (COIN) lower. Meanwhile, tech giant Oracle (ORCL) joined forces with OpenAI and SoftBank to create Stargate, and nuclear energy names Oklo (OKLO) and NuScale Power (SMR) surged following news that the new pick for the Energy Department will prioritize nuclear power production. The defense sector was also in focus, with Lockheed Martin (LMT), RTX (RTX), and General Dynamics (GD) making moves.
Earnings Season In Full Swing
With bank earnings out of the way, blue chips barreled into the confessional this week. 3M (MMM) stock looked to extend its win streak after a quarterly win, while shares of Procter & Gamble (PG) and Johnson & Johnson (JNJ) moved in opposite directions after sharing their results. Texas Instruments (TXN) saw bullish attention prior to its report, and American Airline's (AAL) dismal forecast overshadowed its better-than-expected fourth quarter. Finally, Twilio (TWLO) stock eyed its best day since 2020 thanks to the cloud company's strong revenue outlook.
Fed's Interest Rate Decision Coming Up
Next week brings the Federal Open Market Committee's (FOMC) interest rate decision, in addition to the Fed's favorite inflation gauge, the personal consumption expenditure (PCE) index. The earnings docket is full, with reports coming from the likes of AT&T (T), Boeing (BA), Chevron (CVX), Exxon Mobil (XOM), Meta Platforms (META), Tesla (TSLA), Starbucks(SBUX), and Visa (V). Ahead of the action, dig into what could happen after the market dodged a delta-hedge decline, and how stocks typically perform after Inauguration Day.