The trading week commenced with a sluggish start for U.S. main stock indexes, as investors awaited pivotal events, including the Federal Reserve’s imminent rate decision and high-profile earnings reports from major technology companies. Last week’s lackluster forecasts from Intel (NASDAQ:INTC) and Tesla (NASDAQ:TSLA) heightened concerns about potential overvaluation in momentum stocks, which have been driving the market rally. This week’s spotlight is on major earnings announcements, including those from Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Amazon.com (NASDAQ:AMZN), Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), Qualcomm (NASDAQ:QCOM), Merck, Pfizer (NYSE:PFE), and Boeing (NYSE:BA).

Investors are cautiously optimistic about a Goldilocks scenario for the economy, supported by recent data indicating a resilient economic performance and a downward trend in inflation. The S&P 500 (NYSE:SPX), which has achieved multiple intraday and closing record highs in the past month, is closely monitored as global attention turns to the first U.S. monetary policy decision of the year. Traders are especially focused on crucial job reports, including the Job Openings and Labor Turnover Survey (JOLTS) and the ADP National Employment report, ahead of the Fed’s policy decision, seeking insights into the strength of the U.S. labor market.

As of the morning session, the Dow Jones Industrial Average (NYSE:DJI) showed a slight uptick, the S&P 500 (NYSE:SPX) demonstrated a modest increase, and the Nasdaq Composite (NASDAQ:IXIC) recorded a small gain. Within sectors, the energy sector (NYSE:XLE) experienced the most significant movement, declining by 1.0% due to slipping crude prices.

In corporate news, iRobot (NASDAQ:IRBT) saw a notable 16.4% drop after the robot vacuum maker and Amazon abandoned their merger plans in the face of opposition from EU antitrust regulators. Chip stocks, including Micron Technology (NASDAQ:MU), Broadcom (NASDAQ:AVGO), and Nvidia (NASDAQ:NVDA), rebounded slightly after experiencing losses in the previous week.

Meta Platforms (NASDAQ:META), the parent company of Facebook, rose 1.2% after Jefferies raised its target price on the stock. However, Warner Bros Discovery (NASDAQ:WBD) lost 2.4% as Wells Fargo downgraded the streaming platform to “equal weight” from “overweight.”

Financial technology firm SoFi Technologies (NASDAQ:SOFI) surged 17.3% after reporting a fourth-quarter profit, a positive turn from the loss in the same period a year ago. The market continues to exhibit a cautious sentiment, with declining issues slightly outnumbering advancers on both the Nasdaq and the New York Stock Exchange (NYSE).

The S&P index recorded new 52-week highs, while the Nasdaq had both new highs and new lows, reflecting the current nuanced state of the market as investors navigate through various economic indicators and corporate performances.