dow snaps 6session win streak to kick off week full of potential potholes stocks finished near session lows monday as a big week that features a federal reserve interestrate decision a jobs report and several key technologysector earnings reports got under way stocks rose last week with the sp 500 and nasdaq ending friday at highs for the new year the sp 500 has rallied 46 in january and riskier plays such as the ark innovation etf arkk have done even better with cathie woods flagship fund up more than 23 in 2023 the nasdaq composite led a jittery stock market lower on monday as a big week for both corporate earnings and macroeconomic data got under way what we are seeing here is investors getting cautious before the fed announcement on wednesday and as major corporations report results tomorrow and the rest of the week said peter cardillo chief market economist at spartan capital securities in a phone interview the federal reserve interestrate decision will be coming wednesday and nonfarm payrolls are set for release on friday the fed is widely expected to deliver a 25basispoint rate increase downshifting from the outsize 50 and 75basispoint increases seen last year the fed has signaled rates will top 5 and stay there while markets have priced in cuts for the second half of 2023 setting up a potential clash cardillo thinks the fed will surprise with an increase of 50 basis points but hint at a tightening cycle that is nearing an end potentially as soon as march should that unfold cardillo said he expects both stocks and bonds to rally paving the way for the sp 500 to move up to 4200 read four ways powell could tell markets the fed isnt ready to pivot monetary policy works with a lag and we will likely be feeling the influence of higher rates of 2022 well into 2023 said matthew miskin john hancock investment managements cochief investment strategist in emailed commentary on monday miskin also warned that stocks have advanced to start the year even through earnings estimates for the sp 500 have been falling causing the forward priceto earnings ratio to reach its highest since august at 1793x we see this valuation as a potential headwind and either looking for cheaper equity asset classes or fixed income options as attractive alternatives readthe fed and the stock market are on a collision course this week whats at stake tech giants apple inc aapl alphabet inc googl and amazoncom inc amzn highlight a huge slate of corporate earnings reports this week tech stocks in particular have rallied this month as bond yields have eased also readcould big tech layoffs keep growing apple amazon facebook and google may give hints in biggest week of earnings the benchmark 10year treasury rate edged higher above 35 on monday but off the roughly 42 high in october major central banks are set to hike policy rates again this week and keep them higher counter to market views for cuts this year a blackrock investment institute team led by wei li global chief investment strategist said in a monday client note we see this as disconnect resolving and favoring higher rates