Stocks Set for Muted Open as Investors Await Big Tech Earnings and Fed Meeting; Middle East Developments in Focus

U.S. markets looked set for a muted open as investors stayed cautious ahead of a heavy calendar: big-tech earnings from five Magnificent Seven names, the Fed’s interest-rate decision and a slew of U.S. economic data. Geopolitical risk from the Middle East pushed WTI crude prices higher (Strait of Hormuz disruptions), boosting energy stocks while adding uncertainty to inflation and policy outlooks. The S&P 500 and Nasdaq 100 recently hit record highs, supported by strong earnings (Intel jumped >23% on a beat) and analysts’ optimism that S&P earnings will show double-digit growth. The Fed is widely expected to hold rates at 3.50%–3.75%, but markets will watch for any signal on further hikes. Overall, the piece frames markets as cautiously optimistic — momentum from earnings and AI demand versus near-term geopolitical and policy risks.