New York, January 26, 2026, 05:51 EST — Premarket
- Dow futures slip 61 points as investors prepare for the Fed’s rate decision and a packed earnings schedule
- Friday saw the Dow fall 0.58%, weighed down by Intel’s gloomy forecast
- Traders are focused on U.S. data releases this week, searching for signs on growth and inflation
Dow Jones futures slipped on Monday as investors braced for a busy week featuring a Federal Reserve announcement and earnings from major U.S. firms. The Dow was down 61 points, or 0.12%, trading at 49,202. (Investing)
The context is crucial since January has been volatile, with the Dow hovering close to its recent peaks. Investors are juggling two demands: evidence that rate cuts remain possible later this year, and confirmation that corporate AI spending is translating into actual sales—not just swelling capex budgets.
Futures track the index ahead of the cash market opening. They often react sharply to headlines, especially during busy weeks packed with policy updates and earnings reports.
The Dow closed Friday down 285.30 points, or 0.58%, at 49,098.71. The S&P 500 ended flat, while the Nasdaq managed a gain. Intel dropped 17% after forecasting quarterly revenue and profit below expectations, dragging on risk appetite. “We’re feeling pretty good, but mindful we might have some significant twists and turns throughout the rest of the year,” said Jason Blackwell, chief investment strategist at Focus Partners Wealth. (Reuters)
The Dow is feeling pressure from the same “show-me” earnings sentiment, despite most of the AI action centering on the Nasdaq. If the major players offer cautious forecasts, industrial and financial giants in the index might find little refuge.
Outside of stocks, investors are flocking to safe havens. Gold surged beyond $5,000 an ounce, while the yen gained ground amid talks of intervention. That combo has currency markets on edge, complicating things for U.S. multinationals. TD Securities strategist Prashant Newnaha noted, “The market’s inclination is to short the yen but the possibility of coordination means it no longer is a one-way bet.” (Reuters)
Treasury yields dipped early Monday, with the dollar slipping against major currencies as investors balanced risk and braced for key events this week. Yields are crucial for the Dow—rising borrowing costs can put pressure on industrial and consumer stocks reliant on financing.
U.S. data this week will focus on demand and confidence metrics. Tuesday brings Consumer Confidence figures, followed by Advance Durable Goods on Wednesday. Thursday’s slate includes Personal Income and the PCE deflator—an important inflation measure—plus weekly jobless claims. (Federal Reserve Bank of New York)
The bigger question is whether the Fed can keep markets steady as politics and geopolitics seep into price moves. Investors largely expect the central bank to keep rates unchanged on Wednesday. Fed funds futures — which track bets on the policy rate — still imply at least one quarter-point cut this year. “It’s been a little bit of a short but steep roller-coaster ride over the past several days,” said Yung-Yu Ma, chief investment strategist at PNC Financial Services Group. (Reuters)
The risk is clear: a hawkish Fed stance, a spike in inflation expectations, or fresh policy news could push yields higher and drag equities down simultaneously. A few disappointing forecasts from key companies would also challenge the optimism priced in right now.
The next major event is the Fed’s policy decision on Wednesday. Traders will zero in on the statement and Chair Jerome Powell’s comments, searching for clues on whether rate cuts will return, and if so, when.
