Weekly Stock Market Update & SPY Technical Analysis
We’re only a few weeks into 2026, but already approaching one of the most important weeks of the entire year. The coming days will bring with key earnings data and important monetary policy updates…two of the most influential subjects in market direction.
Scheduled Earnings:
Boeing / RTX / Northrop Grumman / Lockheed Martin - Aerospace & defense stocks have been among the leaders in the market over the last quarter, making their earnings critical to the industry and the overall index. Many small and mid-cap companies have also enjoyed the rally, including AeroVironment (AVAV), Kratos (KTOS), Red Cat (RCAT). All these stocks are subject to influence by the earnings results of the largest names in the industry. We’re expecting these names to provide strong earnings outlook, but we’ll specifically focus on revenue sources by category. This unlocks key insights to where the majority of money is flowing, allowing us to find other related names that supply those niche areas. Join us in Hyper Stocks Pro for real time updates and stock set-ups.
Microsoft / META / Tesla / Apple - As of now, none of the Magnificent 7 stocks have released earnings yet, but these four will this week. The MAG7 collectively represent about 30-35% of the S&P 500’s total market cap, which means large moves (whether up or down) have significant influence on the overall market’s move. We’ve scaled back our exposure to tech in early in 2026 and increased it in other areas like industrials (and more). Since these names are all spending an unprecedented amount of money on AI infrastructure, we want to see what their timeline to actual return on their investment looks like and how it’ll impact their overall financial performance. We’re still bullish on tech, but government policy seems to be supporting other opportunities in the market.
ASML / Lam Research / IBM - ASML and Lam Research are especially important because they are key suppliers of semiconductor manufacturing equipment. Their products are essential to make advanced AI chips, and given the boom in demand, their numbers are expected to grow significantly. However both stocks are trading at record highs and are priced for perfection, a small earnings beat may not be enough to justify paying the premium. Their numbers could also give insight to overall industry demand, which directly relates to names like Nvidia, AMD, TSM…etc.
Monetary Policy:
FOMC / Interest Rate Decision / Fed Chair Powell Press Conference - The Fed will hold their first meeting of 2026 and decide on interest rates, a subject that has become controversial due to pressure from the Trump administration. Trump has continued to pressure The Fed, particularly Fed Chair Jerome Powell, to cut rates at a faster and bigger rate. Powell has pushed back by stating that he’s committed to doing what The Fed see fit based on economic data.
The odds of a rate cut coming into this week are near zero, which the market doesn’t like. Lower rates stimulate growth and spending, by both consumers and enterprises. This is why Trump wants lower rates, but The Fed argue that inflation is still not fully under control, and cutting rates too fast can trigger higher inflation. We’ll be covering the events as they take place this week. Join us in Hyper Stocks Pro for real time updates and stock set-ups.
What this means for us:
There’s no need to overreact in the short term. While markets can be volatile around these events, the real reaction tends to unfold over the weeks and months that follow. Our job is to dissect the data, understand its true implications, and identify where capital is likely to flow, so we can position the portfolio in line with the broader market environment.
SPY Technical Analysis:
SPY topped out around 697.30 in recent weeks and has made lower highs since (as shown on the chart above), which could signal a downside move is underway. We’ve labeled some key support points on the index in the case the events described above trigger a sell-off.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of capital. Always conduct your own research or consult with a licensed financial advisor before making investment decisions.
Hyper Stocks and its contributors may hold positions in some of the securities or assets mentioned above. These positions are subject to change without notice. Any opinions expressed reflect current views at the time of writing and are not guarantees of future performance. Past performance does not guarantee future results.