The S&P 500 opened above 7000 for the first time on Wednesday, before falling back to $6,975 after the Fed’s decision to leave interest rates unchanged. The index has been on a gain to open 2026, thanks to tech stocks performing well. Microsoft, Tesla, and Meta Platforms are all slated to report quarterly results this week. Wall Street will be tuning into the firms’ earnings calls for updates on artificial intelligence spending, which can dictate how high the S&P 500 will move next.
The Fed’s first interest-rate decision came and went as expected, as the central bank kept rates unchanged in a range of 3.5% to 3.75%, in a 10-2 decision. Governors Chris Waller and Stephen Miran dissented, voted in favor of a 25 basis point cut. The move put an expected hit on the leading Wall Street indexes.
Wall Street analysts generally project continued growth for the S&P 500 in 2026, marking a potential fourth consecutive year of gains driven by strong corporate earnings, AI adoption, and a robust economy. Forecasts range from modest gains of around 3.7% (reaching 7,100) to more aggressive 16%-18% upside (reaching 8,000). Wednesday’s record was a strong start, and the index may continue its success if more rate cuts come and tech stocks continue to succeed.