New York, Jan 27, 2026, 05:58 (EST) — Premarket
Dow futures slipped early Tuesday as UnitedHealth fell on news of a proposed Medicare Advantage rate update. Meanwhile, S&P 500 and Nasdaq futures climbed, with investors gearing up for a packed earnings slate and the start of the Federal Reserve meeting. By 5:22 a.m. ET, Dow E-minis were down 40 points, or 0.08%. S&P 500 E-minis gained 17.25 points, or 0.25%, and Nasdaq 100 E-minis jumped 140 points, or 0.54%. UnitedHealth, set to report earnings before the open, dropped 8.6%. Salesforce rose 2.2% after securing a $5.6 billion contract with the U.S. Army. Traders also kept an eye on consumer confidence figures and the looming January 30 U.S. funding deadline. 1
The Dow is price-weighted, meaning stocks with higher prices have outsized influence, often moving the index more than their market value alone would imply. That’s why a single policy headline, such as a Medicare update, can sway the blue-chip index more noticeably than broader benchmarks on certain mornings.
The Dow climbed 313.69 points, or 0.64%, to finish at 49,412.40 on Monday. Wall Street showed a clear preference for big tech and communications stocks ahead of a packed earnings calendar. “You’re seeing communications and technology are trading well today in advance of the earnings from a lot of the large companies,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. 2
Late Monday, the Centers for Medicare & Medicaid Services proposed a mere 0.09% bump in 2027 payments to private insurers managing Medicare Advantage plans — the government-backed coverage sold to seniors and disabled individuals. Kevin Gade, COO at Bahl & Gaynor, noted investors had been expecting a rise closer to 4% to 5%. Morningstar’s Julie Utterback said the industry will be watching closely to see if the agency tweaks its assumptions ahead of the final notice due April 6. 3
The Fed’s two-day meeting kicks off Tuesday, with most expecting the policy rate to hold steady between 3.50% and 3.75%. Tim Duy, chief U.S. economist at SGH Macro Advisors, noted that “Trump will need greater turnover at the Fed to fully control the institution,” as focus turns to leadership questions surrounding Chair Jerome Powell and the next nomination. Oxford Economics’ Michael Pearce said last week the “near-term outlook is benign,” but cautioned that outside events could still disrupt the rate trajectory. 4
Washington introduced fresh market tension as a partial government shutdown loomed amid a standoff between Republicans and Democrats over Department of Homeland Security funding, Reuters reported. The dispute follows a second fatal shooting involving federal immigration officers in Minneapolis. Republican Senator Susan Collins cautioned against a “dangerous and detrimental government shutdown” as funding for several key programs is set to expire after midnight Friday. 5
Dow traders face a familiar blend: health care policy rattles one of the index’s biggest components, even as earnings and interest rates remain front and center. If UnitedHealth manages to hold its ground post-report, the initial weakness might quickly disappear.
The risk runs the other way. A sharper selloff in insurers, cautious forecasts from industrial leaders, or a Fed signal that rates will remain elevated longer than expected might push funds back to the sidelines and hit cyclicals, which make up a large part of the Dow.
Coming up fast: UnitedHealth reports earnings before Tuesday’s open, followed by U.S. consumer confidence data later that day. Then on Wednesday, the Fed unveils its policy decision alongside Powell’s press conference. The week wraps with the government funding deadline on Friday.
