The S&P 500 Index has stalled near its all-time high as investors reflect on major news, including the ongoing earnings season and geopolitical events. It was trading at $6,9400, a few points below the all-time high of $6,986. This article explores some of the top catalysts for the SPX Index and its ETFs, like VOO and SPY.

S&P 500 Index chart | Source: TradingView

Corporate earnings to impact the S&P 500 Index

The S&P 500 Index will start the week on a low note as the stock market will be closed for Martin Luther King (MLK) Day. Traders will then react to corporate earnings when the market opens on Tuesday this week.

Data shows that 7% of all companies in the SPX, SPY, and VOO ETFs have already published their numbers. 79% of these companies have reported a positive EPS surprise, while 67% of them have had a positive revenue surprise.

The average earnings growth rate for these companies is 8.2%. If this is the final number, it will mark the 10th consecutive quarter of earnings growth in the United States. 

Many S&P 500 Index constituent companies will publish their numbers this week. The most notable of these will be Netflix, the biggest media company in the world, which will release its numbers on Tuesday.

Netflix will be in the spotlight because of the ongoing process of the Warner Bros. Discovery buyout. While Netflix has won the auction, itis  now battling Paramount, which is taking its case straight to shareholders. Netflix is considering increasing the cash portion of the deal.

The other large S&P 500 Index constituents that will release their numbers this week are Johnson & Johnson, Charles Schwab, P&G, GE Aerospace, Abbott, Intel, and Freeport-McMoran. 

US tariffs on European countries

The other notable catalyst for the S&P 500 Index and its ETFs like SPY and VOO is the new trade war between the United States and some European countries. 

Donald Trump announced that he would place an additional 10% tariff on goods coming from key EU countries. Specifically, he focused on EU countries that have sent their military officials to Greenland, a semi-autonomous region he wants to acquire. 

The tariff will then go up to 20% in June if the acquisition is not completed. Europe is the biggest US trading partner, and these tariffs will likely have an impact on S&P 500 constituents. 

Supreme Court ruling on tariffs

The S&P 500 Index will react to the upcoming ruling of Donald Trump’s tariffs. This ruling is expected on January 20th, with most traders on Polymarket expecting the court to end the levies.

Such a move will be bullish for American stocks as companies will save billions of dollars annually. Some companies may also receive compensation if the court asks the government to issue refunds.

However, the potential benefits may be short-lived as Trump has some tools to implement the tariffs. 

Trump’s Federal Reserve nomination process

The other key catalyst for the index and its ETFs is the ongoing interview process for the next Federal Reserve Chairman. Trump is now considering either Kevin Hassett, Kevin Warsh, Christopher Waller, and Rick Rieder.

According to Bloomberg, the candidacy of Rick Rieder is gaining momentum after his interview on Thursday last week. Just last week, he expressed concerns of losing Hassett from the economic council that he chairs because of his TV performance. 

The S&P 500 Index and its ETFs will also react to some notable macro data from the US, including pending home sales, personal consumption expenditure (PCE), and flash manufacturing and services PMIs. 

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