Morning Business Report: Wall Street braces for Fed rate decision, tech earnings as winter storm disrupts travel

It’s shaping up to be a big week on Wall Street, with major developments expected in monetary policy, corporate earnings, and the broader economy.

(LILAMAX)- It’s shaping up to be a big week on Wall Street, with major developments expected in monetary policy, corporate earnings, and the broader economy.

The Federal Reserve begins its first policy meeting of 2026 on Tuesday, with its next interest rate decision due later this week. Economist Mark Zandi of Moody’s predicts the Fed could move quickly this year, forecasting three interest rate cuts in 2026 as inflation pressures ease.

Wednesday will also be pivotal for investors, as all seven of the so-called “Magnificent Seven” tech giants are scheduled to report earnings. Traders expect earnings for the group to rise by nearly 17 percent, underscoring the sector’s continued influence on market performance.

Meanwhile, a massive winter storm continues to disrupt travel and utilities across the country. Nearly 2,000 flights were canceled Monday, stretching from New Mexico to New England. U.S. airlines canceled more than 10,000 flights Sunday, according to FlightAware.

Power outages are also climbing as temperatures plunge. As of Sunday, more than 700,000 customers were without electricity, with the largest concentrations in Texas, Mississippi, and Tennessee. The storm spans more than 2,300 miles, putting intense pressure on the power grid.

That strain has driven sharp spikes in energy prices. According to Reuters, the nation’s largest regional power supplier — serving 67 million people across the East and Mid-Atlantic — saw wholesale electricity prices surge to more than $3,000 per megawatt-hour, up from about $200 earlier in the day. Analysts point to the nation’s heavy reliance on natural gas, which generates roughly 40 percent of U.S. electricity, as a key factor.

In other economic news, Americans preparing their 2025 tax returns are expected to see larger refunds. The Tax Foundation reports the average refund is projected to increase from $3,052 in 2024 to about $3,800 for tax year 2025.

The increase follows passage of the “Big Beautiful Bill” in July, which extended the 2017 tax cuts and added new provisions, including expanded deductions for Social Security benefits, a higher child tax credit, and tax deductions on tips and overtime pay.