Investing.com -- U.S. stocks were mixed on Tuesday, as investors awaited a key Federal Reserve decision and heavyweight technology earnings at the early stages of this quarter’s reporting season.
At 13:08 ET (18:08 GMT), the Dow Jones Industrial Average was down 1.1% to 48,873.23 points, while the S&P 500 index was up 0.4% to 6,974.88 points, and the NASDAQ Composite had gained 0.9% to 23,809.75 points.
Unitedhealth Group (NYSE:UNH) was a major drag on the blue-chip Dow, as the managed care giant joined its peers in a broad-based slump after a much lower-than-anticipated proposed increase to payments from next year’s Medicare Advantage plans. Meanwhile, Boeing Co (NYSE:BA) was also a top percentage loser on the Dow, despite the planemaker swinging to a quarterly profit.
On the other hand, chip stocks extended their recent run, helping prop up the benchmark S&P and the tech-heavy Nasdaq. The S&P 500 at its session high scaled a new all-time intraday peak at 6,989.24 points, its first record in over two weeks.
Fed starts policy-setting meeting
Markets are largely in a wait-and-see mode ahead of the Federal Reserve’s two-day policy meeting, which concludes on Wednesday.
This caution means that President Donald Trump’s announcement that he is raising tariffs on South Korean imports to 25% from 15%, accusing Seoul’s legislature of failing to approve a bilateral trade deal reached last year, has had little impact on sentiment.
The U.S. central bank is widely expected to leave interest rates unchanged, with policymakers seen assessing the impact of easing financial conditions, cooling inflation trends, and a labor market that has shown signs of gradual moderation.
Recent data has reinforced expectations that the Fed will avoid signaling near-term cuts, as officials seek greater confidence that inflation will move sustainably toward their 2% target.
Aside for clues about clues on the timing and pace of potential rate cuts later in the year, investors will also be looking for any updates about the identity of the next Fed governor, with Jerome Powell’s tenure set to end in May.
"Rick Rieder’s odds of replacing Powell have shot higher in recent days following some flattering press reports," said analysts at Vital Knowledge, in a note. "
Rieder is currently a senior manager at BlackRock.
That said, "regardless of who gets the nod, Fed independence will remain under threat for at least the balance of the Trump 2.0 administration as the central bank is set to continue acting as a financial scapegoat)," Vital Knowledge added.
Earnings deluge starts
Away from the Fed, attention is also firmly on the upcoming earnings season, with more than 90 S&P 500 companies slated to report this week.
Earnings this quarter have been strong so far, with about three out of four S&P 500 companies beating expectations, according to data from FactSet.
While results from tech giants Meta Platforms (NASDAQ:META), Tesla (NASDAQ:TSLA), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL) will likely grab the week’s headlines, there are numerous reports Tuesday to digest.
Boeing swung to a fourth-quarter profit, driven by the sale of its navigation software services provider, as well as rising jet output and stronger deliveries.
American Airlines (NASDAQ:AAL) forecast 2026 profit above expectations, with the carrier buoyed by a recovery in corporate travel and strong demand for high-margin premium services.
General Motors (NYSE:GM) reported a higher fourth-quarter core profit, helped by stronger sales of its affordable crossover SUVs and pickup trucks through the year.
United Parcel Service (NYSE:UPS) forecast higher 2026 revenue, as the world’s largest package delivery company continues to reduce low-margin deliveries for its biggest customer, Amazon (NASDAQ:AMZN), and shifts toward higher-paying shipments.
Elsewhere, low-cost airline JetBlue (NASDAQ:JBLU) reported wider-than-expected fourth quarter losses, despite slightly exceeding revenue forecasts.
Aside from the underwhelming Medicare Advantage payments proposal, UnitedHealth also reported a slump in its earnings in its fourth quarter, as it grapples with a challenging period marked by elevated medical costs.
Gold and crude rise
Spot gold prices edged higher Tuesday after hitting a series of record highs on concerns over Trump’s trade policies and heightened global geopolitical tensions.
Anticipation ahead of the Fed meeting this week also kept markets broadly risk averse.
Spot gold was last up 1.5% to $5,083.65 an ounce, while gold futures for April delivery were down marginally at $5,118.76/oz. Spot gold hit an all-time peak of $5,111.40/oz on Monday.
Oil prices also gained, helped by supply disruptions from extreme winter conditions in the U.S.
Brent futures gained 2.3% to $66.26 a barrel and U.S. West Texas Intermediate crude futures rose 2.4% to $62.08 a barrel.
A severe winter storm has swept across the U.S., straining energy infrastructure and power grids.
U.S. oil producers are estimated to have lost up to 2 million barrels per day or roughly 15% of national production over the weekend.
Ayushman Ojha and Peter Nurse contributed to this article
