New York, Jan 28, 2026, 06:00 EST — Premarket
- Dow futures edged up slightly as the Fed’s policy announcement approached
- Health insurers remained under the spotlight following a Medicare Advantage payment proposal
- Currency moves and Big Tech earnings drove the day’s market action
Dow Jones Industrial Average futures climbed roughly 30 points early Wednesday, while S&P 500 and Nasdaq 100 futures showed modest gains. These contracts, traded outside normal sessions, often signal possible market openings. 1
The Federal Reserve wraps up its two-day meeting Wednesday, with markets almost fully expecting no rate change. According to CME FedWatch, the odds of a hold stand near 97%, based on fed funds futures. Investors now look for clues on the Fed’s next moves and whether new doubts about its independence muddy the outlook. 2
Healthcare is dragging the Dow today after U.S. officials suggested a mere 0.09% hike in 2027 Medicare Advantage payments—well below investor expectations. “People were ballparking this flat rate to be closer to 4 to 5%,” noted Kevin Gade, COO at Bahl & Gaynor. CMS Administrator Mehmet Oz defended the move, saying the proposal is designed to improve Medicare Advantage for beneficiaries. The agency projects the update will boost payments by over $700 million, with a final decision expected April 6. 3
The Dow dropped 408.99 points, or 0.83%, to 49,003.41 on Tuesday, dragged down by UnitedHealth’s 19.6% plunge and steep losses in Humana and CVS, which fell 21% and 14.2%, respectively. The S&P 500, however, edged up 0.41% to close at a record 6,978.60, while the Nasdaq climbed 0.91% to 23,817.10, buoyed by gains in big tech stocks. “There’s a little bit of a bifurcated market today with the Dow down,” noted Phil Blancato, chief market strategist at Osaic Wealth in New York. 4
Beyond stocks, the dollar found its footing following a steep drop triggered by President Donald Trump’s remarks on the currency. Gold climbed past $5,241 an ounce, while Treasury yields remained steady. This dynamic has lent some support to risk assets, but it also heightens the pressure on any Fed statements about the economy. 5
Earnings are heating up. Microsoft and Meta are set to report on Wednesday. Reuters says Microsoft, Meta, Amazon, and Alphabet will boost AI spending by around 30%, pushing the total past $500 billion this year. That’s raising questions about the payoff from these massive bets. “Like in the internet boom, the first-mover advantage doesn’t always win the marathon,” said David Wagner, head of equities at Aptus Capital Advisors. 6
The Medicare proposal remains just that—a proposal—and analysts caution that rates near current levels could tighten margins, potentially leading to benefit reductions or plan withdrawals. “Simply put, the potential rates compared to the cost trend will likely be insufficient,” said Baird analyst Michael Ha. 7
The Fed poses another risk. Markets expect a hold, but they haven’t factored in a sudden change in tone that could shake rates — whether it’s a tougher stance on inflation or a quicker move toward cuts — just as stocks are betting heavily on “good” news.
Traders are set to zero in on the Fed’s policy verdict at 2:00 p.m. Eastern, followed by Chair Jerome Powell’s press conference at 2:30 p.m. After that, attention will shift back to earnings reports as the session winds down. 8
