Magnificent 7 Earnings, Fed Meeting in Focus

Magnificent 7 earnings will dominate markets as Microsoft, Meta, Tesla and Apple report after the close on Jan. 28–29, 2026, while the Federal Reserve meets Jan. 27–28 and is widely expected to hold the policy rate at 3.50%–3.75%.

Big Tech Earnings and Market Impact

The Magnificent 7 posted aggregate fourth-quarter earnings per share (EPS) growth of 16.9% and revenue growth of 16.6% year over year, with estimates rising ahead of the reports. An early S&P 500 scorecard covering 64 companies showed EPS up 17.5%, revenue up 7.8%, and 82.8% of firms beating EPS estimates.

Microsoft Corp. (MSFT) is forecast to report for the quarter ended December 2025 with consensus EPS of $3.88 and revenue of $80.2 billion, increases of 20.1% and 15.2% year over year. Analysts have raised estimates, and Microsoft enters the week on an 11-quarter streak of beating both EPS and revenue targets.

Apple Inc. (AAPL) is expected to report for the same quarter with consensus EPS of $2.66 and revenue of $138.1 billion, up 10.7% and 11.1% from a year earlier. Apple has recorded 11 consecutive quarters of EPS and revenue beats and carries upward estimate revisions into its fiscal first quarter and full fiscal year.

Meta Platforms Inc. (META) is forecast to post fourth-quarter results with consensus EPS of $8.15 and revenue of $58.4 billion, up 1.6% and 20.7% year over year. The company arrives on an 11-quarter run of EPS beats and 13 straight revenue beats.

Tesla Inc. (TSLA) is set to report fourth-quarter results with consensus EPS of $0.40 and revenue of $24.9 billion, declines of 45.2% and 3.2% from a year earlier. Tesla’s weaker profit momentum contrasts with its Magnificent 7 peers and could temper the index breadth benefits from strong mega-cap results.

The concentrated strength of the Magnificent 7 remains a key driver of S&P 500 dynamics heading into earnings, presenting a near-term test of market leadership.

Federal Reserve Meeting and Economic Context

The Federal Open Market Committee (FOMC) meets Jan. 27–28, 2026, with officials widely expected to keep the policy rate unchanged after 75 basis points of cuts in the prior quarter. The economic backdrop includes third-quarter 2025 GDP growth of 4.4%, December nonfarm payrolls rising by 50,000 with a total 2025 gain of 584,000, unemployment at 4.4%, headline consumer price index (CPI) up 0.3% month over month and 2.7% year over year, and core CPI at 2.8% year over year in November.

Political and leadership risks add complexity. Criminal inquiries related to Federal Reserve building renovations and Justice Department threats surfaced in January 2026. Fed officials have denied political motives. The administration previously sought the removal of Board Member Lisa Cook in August 2025, and recent Supreme Court arguments highlighted legal tensions and concerns about central-bank independence. Chair Jerome Powell’s term expires in May 2026, and the administration has signaled interest in successors more inclined toward rate cuts. The 2026 FOMC lineup includes four neutral, six dovish, and two hawkish voters. Market forecasts vary, with some projecting cuts in June and September, others expecting three reductions totaling 75 basis points, and several models anticipating two cuts later in the year.

The convergence of a likely Fed hold and concentrated mega-cap earnings will test whether robust tech profits can outweigh still-elevated inflation and governance risks at the central bank.