NEW YORK, January 27, 2026, 10:06 EST — Market open for the regular session.
- The Dow dropped roughly 0.9% in morning trading, pulled lower by a steep decline in UnitedHealth.
- U.S. consumer confidence dropped to its lowest point since 2014, posing a new challenge to the economy.
- The Fed meeting has traders on edge, with a heavy slate of earnings ahead, headlined by mega-cap tech reports on Wednesday.
The Dow Jones Industrial Average fell 445.67 points, or 0.90%, to 48,966.73 by 10:05 a.m. ET, underperforming the wider market. The S&P 500 climbed 0.37%, while the Nasdaq Composite rose 0.81%. 1
The split was significant as investors braced for a packed earnings schedule and a two-day Federal Reserve meeting starting Tuesday. “The impetus for markets to continue to rise is going to be an earnings story,” said Charlie Ripley, senior investment strategist at Allianz Investment Management. Traders are focused on earnings results rather than stretched valuations to propel the rally. 2
A mid-morning report showed consumer confidence tumbled 9.7 points in January to 84.5—the lowest since May 2014. The expectations gauge plunged to 65.1. “Confidence collapsed in January,” said Dana M. Peterson, chief economist at the Conference Board. 3
UnitedHealth dropped close to 20% following the Centers for Medicare & Medicaid Services’ proposal to increase 2027 Medicare Advantage payment rates by just 0.09%. The Medicare Advantage program allows private insurers to administer government-backed coverage for seniors. 4
UnitedHealth’s 2026 forecast sparked the selloff. The insurer projects revenue just over $439 billion, signaling about a 2% drop, and expects adjusted earnings per share to top $17.75. “Investors hoping for a quick turnaround may have to wait longer,” said Morningstar director Julie Utterback. 5
Other managed-care stocks followed suit. Humana slid nearly 21%, while CVS took a 10% hit, with investors bracing for further downside ahead of the final Medicare rates due in early April.
Boeing dragged the Dow down roughly 2%, despite posting a quarterly profit boosted by the $10.6 billion sale of its navigation unit Jeppesen. The aircraft manufacturer also took a $565 million charge related to its KC-46 tanker program. 6
General Motors rose following a better-than-expected fourth-quarter profit and an upgraded 2026 forecast. CEO Mary Barra reaffirmed that electric vehicles remain “the end game” for the company, despite a pullback in spending. 7
United Parcel Service climbed after surpassing quarterly estimates and projecting 2026 revenue near $89.7 billion. The company also announced plans to cut up to 30,000 jobs. Evercore ISI analyst Jonathan Chappell described the quarter as “good enough,” reflecting muted expectations. 8
Salesforce jumped after unveiling a $5.6 billion, 10-year U.S. Army contract under an IDIQ setup, letting the Army place orders incrementally instead of one lump sum. The company plans to share more on the deal’s financial impact during its earnings call. 9
The Dow’s main vulnerability lies in its concentration: being price-weighted means big swings in a handful of expensive stocks can distort the index more than in market-cap-weighted ones. Toss in a weak confidence reading, tricky Medicare numbers, and an upcoming Fed decision, and what seems like a steady market can shift in a heartbeat.
Wednesday brings the Fed’s decision alongside earnings from big tech names like Meta, Microsoft, and Tesla. For those focused on the Dow, the healthcare sector’s momentum will be key, especially if UnitedHealth manages to hold steady on guidance as the Medicare review approaches in April.
